When a practice owner begins to think about selling his or her business, it often seems that the natural choice for the purchaser is close at hand, in the form of a trusted employee or contractor in the practice. They will often offer that trusted employee the ”right of first refusal” to purchase the practice, before they put it on the market.
When selling any business, a seller will try to describe the business not just as it is, but also as it could be. Being able to show untapped potential and unexplored opportunities can mean a significant premium paid above and beyond what the financials of your dental practice would suggest.
Every business ownership will come to an end someday. In the best case scenario it is a planned transition whose timing and execution maximises the vendors return on their investment. Sometimes though it doesn’t quite work that way…
A dental practice will usually be one of a dentist’s most valuable assets and the money from its sale should make a huge difference in the lifestyle and choices that are available to the vendor post-sale. As with the sale of any asset, if you want to maximise your results, timing is everything.
12 ways to show potential buyers that your practice is a safe bet
When a practice owner is looking to sell their practice, they will often put off telling their staff for as long as possible. Their reasons for this are usually to do with:
One of the more common conversations that we get into with practice buyers surrounds the potential post-sale role of the vendor. Many vendors aren’t looking to retire right away; they would just like to give up the burdens of ownership. Should they be offered to stay on in an employee or contractor capacity?
There is a reason why world records are set in a race environment, rather than by a lone runner on a track. People strive to do better when there is a competitor nipping at their heels.
After years as an employee dentist, Bill had finally been able to save and borrow enough money to realise his dream of owning his own practice and becoming his own boss.
Sellers are known to be secretive and play their cards very close to their chests. Sure, they want to sell their practices and make the most of the assets that they have created, however there are also often confidentiality concerns and emotional components to the transaction that are overlooked by potential buyers. The more the buyer is able to empathise and get on the same wavelength as the seller, the more forthcoming and welcoming they will find that the seller becomes.