Articles

There is a well-known saying that if a smart person was given six hours to chop down a tree, they would spend the first four hours sharpening their axe. While sharpening your axe adds some up-front effort and may delay the start time, it will also result in the ability to chop wood more efficiently and effectively, once you do begin.

I was still enjoying the dentistry, but not the business part of owning a practice. I had considered career changes early on but, with a young family, had decided to stay the course. One day I turned around and realised I was rapidly approaching 50, and I decided that I had achieved what I wanted to do in dentistry and wanted a change.

The first big, post-sale decision that buyers and sellers of a dental practice will need to make will revolve around patient disclosure. While no one wants to be dishonest with the patient base, there is a fear that, if the sale is communicated poorly, goodwill may not transfer effectively from seller to buyer, and patients may leave the practice. When faced with such dire consequences, some will prefer not to tell the patients anything about the transfer of ownership, and hope to manage the situation “on the fly” if patients ask.

It was fantastic to be interviewed for the latest edition of Australasian Dentist about our role facilitating the buying and selling of a dental practice. Click here to read the article 

It was fantastic to be interviewed for the latest edition of Australasian Dentist about our role facilitating the buying and selling of a dental practice.

A few years before I sold my practice I became involved in charity work with Karen refugees, through Effective Aid International in Thailand, after reading about it in the ADA journal. I decided to move to Thailand after I sold my dental practice. I have a house and a new wife there in a country town called Phetchabun, in central Thailand. It is very affordable to retire in Thailand at an early age.

When you ask someone about the variables involved in establishing the value of a dental practice, they will usually list the quantity and quality of the equipment, the turnover, the profit, the location, the size of the patient-base and the demand for practices in the area. All of these factors (and more) are, of course, huge indicators of the expected price.

Most people would acknowledge that it is inappropriate for a judge to preside over a case involving a family member. If they did, their decision could be influenced by their personal relationship with the person involved in case, rather than the facts. Any ruling would not be deemed fair and just to those who sought judgement (and it probably wouldn’t be).

I took four months off after I sold. I took all four of my kids to Europe to see my family and have a holiday for a month, and then went to Cuba and Mexico with my best friend. After I came back I went back to work, but only doing 18 hours a week. I love being a dentist more than ever, now that I don’t have the stress of ownership. It has reignited my passion for dentistry. My stress level is zero and my work/life balance is very good. Taking control of my life like this has been very empowering.

One of the greatest fears buyers of dental practices have is that they will pay significant money for goodwill and there will be a mass exodus of patients when they take over. To mitigate this risk, any buyer needs to seriously look at the reasons why a patient frequents the practice, and give them no reason to want to change their behaviour.