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Selling your practice-a checklist

Consider the following points that will help you maximize your selling price:

  1. Focus on boosting your practice value, by improving revenues.
  2. Assemble a professional transition team.
  3. Ensure you will have enough money after the sale to lead the life you want to live for the rest of your life.
  4. Know when you are truly ready to sell.
  5. Don’t focus solely on money.
  6. Choose the right person to whom you will sell.
  7. Build a strong team in advance.
  8. Connect with the buyer but don’t negotiate with them.
  9. Put yourself in the buyer’s shoes.
  • Give your clinic a facelift.
  • Minimize your post-sale obligations.

With the above points in mind, here is a checklist of the key things you need to do to sell your practice for the best possible price.

  • Improve the conversion rate of phone inquiries into appointments.
  • Increase the number of active patients who are scheduled for their next appointment.
  • Reduce the practice’s patient attrition rate.
  • Reactivate your inactive patient base.
  • Hire an office manager whose responsibility it is to ensure you are meeting your practice revenue targets.
  • Retain a CPA experienced in working with dental practices.
  • Retain a lawyer who works with dental practices.
  • Bring onboard a quarterback (i.e. a transition specialist or broker).
  • Do the numbers; discover how much money you really need to retire comfortably.
  • Talk to your financial planner and your CPA about setting up a worry-free retirement portfolio.
  • Take the mirror test. When you first look at yourself in the mirror each morning ask yourself, “If I had only a few days left on this earth, would I go to my practice today?” If, for five mornings in a row you answer in the negative, you are ready to transition into retirement without looking back with regret.
  • Think about your legacy, and your reputation. You worked hard to build a thriving career on your integrity. For a few more dollars, don’t let a stranger destroy it.
  • Sell to a compatible person whose values you share, and who aligns with your practice philosophy.
  • Have a buy/sell agreement to ensure you get a fair value for your practice when you leave.
  • Ensure your team is a strong asset in the sale of your practice. If necessary, “clean house” well in advance of looking for a purchaser.
  • Build a trusting relationship with the prospective buyer, without getting involved directly with the negotiations.
  • Don’t be greedy. Leave some juice on the table for the buyer, it will benefit you in the long run.
  • If your clinic is a little worn, consider enhancing its “curb appeal” invest in a facelift. Hip practices sell for more.

One last thing, once it’s over, don’t look back!

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