Deciding to sell your dental practice is no small feat, and we commend you for that. It’s a bold step, and you deserve credit for getting to this point.
But let’s be honest. The decision to sell is just the beginning of the process, and there’s much more work to do to reach the finish line.
Selling a dental practice isn’t like putting up a lemonade stand on the corner and calling it a day. There will be a lot of roadblocks ahead, but that doesn’t mean you won’t be able to reach the finish line.
From understanding the valuation of your practice to finding the right buyer, the path ahead can feel overwhelming and difficult. But don’t worry because you’re not alone.
By taking it step by step and focusing on the right priorities, you can overcome the complexities of selling a business and ensure that you hand over your dental practice to its rightful owner.
Let’s get started with a few practice first steps.
Know First the Value of Your Practice
Before you can confidently sell something, you need to know what it’s worth, and your dental practice is no exception.
Determining the value of practice isn’t just about slapping a price tag on it. We hoped that valuation could be as easy as that. But in real life, valuation is a process because it’s about knowing your dental practice’s true worth.
We wrote an in-depth blog post on dental practice valuations that we strongly recommend checking out, but here are the cliff notes of valuing any kind of business:
- Income-Based Valuation: This method focuses on the revenue your practice generates and projects its future earning potential.
- Market-Based Valuation: This compares your practice to similar ones recently sold in your area, much like how real estate is priced.
- Asset-Based Valuation: This takes stock of your tangible and intangible assets, including everything from your equipment to your goodwill.
So, why go through this process? Because guessing won’t cut it. An accurate valuation not only helps you set a fair price but it also positions you better during negotiations. It gives potential buyers confidence in the deal while ensuring you’re not leaving money on the table.
So, to make it even easier for you, we created a quick valuation calculator that you can use:
Please note: The calculator is for estimation purposes only. For a true valuation of your dental practice, you can schedule a call with our team HERE.
Find the Right Buyer
Selling your dental practice isn’t just about finding someone with the funds to make the purchase—it’s about finding the right person who can take what you’ve built and help it grow.
The ideal buyer should bring more than financial resources; they should have the vision, skills, and dedication to uphold and enhance the standards you’ve set. Look for someone who values patient care, has a clear plan for maintaining your team’s morale, and is committed to building long-term relationships with both staff and patients.
Equally important, the buyer should align with your practice’s vision, mission, and goals. You’ve worked hard to create a culture and reputation that reflect your values, and the right buyer will share those ideals.
Avoid someone simply seeking an investment to park their money and step away; instead, find a buyer who sees the potential of your practice and is eager to actively contribute to its future success. When the buyer’s goals match your legacy, you can hand over the reins with confidence, knowing your practice is in capable hands.
Announce the Decision to Stakeholders
Selling your dental practice is a significant milestone, and sharing this news calls for a thoughtful approach. Start with your team. Gather them for a private meeting, and speak openly about your reasons—whether it’s retirement, pursuing a new path, or simply moving on to the next chapter.
Let them know you’ve carefully considered how this change impacts them, and reassure them that their roles and contributions matter. When communicating with patients, craft a heartfelt letter or email that emphasizes your dedication to ensuring their care remains seamless during the transition.
Reactions won’t all be positive, and that’s okay. Some staff may worry about job security, while patients might question the continuity of care they’ve come to rely on. Be prepared to address these concerns directly. For your team, offer individual discussions to address specific worries and highlight plans for a smooth transition.
For patients, clearly outline how their care will continue uninterrupted, introducing the new owner with confidence and compassion. Showing empathy and addressing concerns upfront can make a world of difference in guiding everyone through the change.
Finalize the Purchase and Iron Out Your Exit Strategy
Finalizing the sale of your dental practice involves more than signing on the dotted line. Once you’ve agreed on terms with the buyer, you’ll need to work closely with legal and financial professionals to handle the paperwork.
This includes drafting a purchase agreement that outlines the terms of the sale, transferring assets, and ensuring compliance with local and state regulations. Don’t overlook details like patient record transfers, staff contracts, and the allocation of liabilities—it’s all about making the transition smooth for everyone involved.
Your exit strategy is just as important. A well-planned transition could involve staying on temporarily to mentor the new owner or gradually reducing your involvement to maintain continuity for staff and patients.
If stepping away completely is your goal, ensure clear communication with your team and patients, so they feel reassured about the future. The key is to leave your practice in a way that honors your legacy while giving the new owner the tools to succeed.
Let’s Talk About the Next Steps
Selling your dental practice is a complex process, but you don’t have to navigate it alone. At Virjee Consulting, we help dental practice owners like you exit their practices every day.
From the due diligence phase to preparing your financial statements, we handle the heavy lifting. We’re here to answer financial questions from buyers, work with banks, and, most importantly, structure your deal to be as tax-advantaged as possible.
This is what we do, and we’re passionate about making sure your hard work pays off—literally and figuratively.
If you’re ready to take the next step and want a mentor to guide you through the process, book a call with our team by heading over to our Contact Page.
Let’s make your transition as seamless and rewarding as possible.
Until next time!
