Starting in Q3 of 2023, the transition market has picked up as interest rates stabilised and the economic outlook became more positive. Interest rates are expected to hold steady or decrease slightly in 2024.
Is now a good time to buy a dental practice?
The transition market in B.C. is healthy. Interest rates are up but still affordable. The price for dental clinics has remained stable.
So, are you both financially and emotionally ready to move? I would not let economic factors keep you from owning the right practice which checks all the boxes. If you are not sure, then have a practice transition advisor guide you through the process and help you decide when the right time is to become a practice owner.
Is it a good time to sell your practice?
This decision depends on your circumstances. Has the market affected your portfolio to a point where it makes sense to keep working longer to build up your nest egg? Is the practice in good financial shape to be attractive to buyers? Are you emotionally ready to sell the dental clinic and give up the cash flow? Every situation is different, and you must ensure that you, personally and professionally, are ready to take this giant leap to make the transition successful.
As a vendor, what should you know about selling to a DSO (Dental Service Organization) such as Dentalcorp?
You will see a bigger offer from a DSO than a private buyer but know all the factors involved before signing anything. You will work with the DSO for three to five years likely, so do your due diligence. In most cases, you are getting equity in the DSO, which means market conditions play a factor in the ultimate value. How capitalized is the company? How experienced is their leadership? Are they well-established or a small up-and-comer? Is your equity at risk? Retain an experienced advisor to work with you to explain the entire deal, understand its impact and mitigate the risk factors is critical. No deal is better than a bad deal here.
