Are you a dentist or do you work with dentists? If so, welcome to the fourth entry in a limited series I’m calling “Mike’s Molars of Information: General thoughts pertaining to the dental professional practice owner or aspiring dental professional practice owner”.
I hope you find value in these thoughts. Thanks for tuning in!
Often times, when a practicing dentist begins to think about transitioning their practice to the next owner, it can be difficult to determine exactly where to start. The following is a preliminary “checklist” that can be helpful to start the process of thinking about the particulars around selling your dental practice. I’ve created the list in an easy to remember format–following the tried and true journalism questions: who, what, where, when, why and how. While this list isn’t necessarily “comprehensive”, it provides a good jumping off point in the journey of selling a dental practice.
Who?
Who is your target buyer. Generally, there are 3 buyer types—the solo doc/dentist; the practice group; the large corporate group (DSO) or private equity. Each have their pros and cons and need to be evaluated and aligned with your (the selling doc’s) preference.
What?
What is being sold? The practice in its entirety? A portion of the equity of the practice? The assets of the practice? Ancillary items (i.e. real estate) that resides outside of the practice?
Where?
Is there anywhere you plan on working post-sale of your practice? Is it inside the practice or outside the practice? This becomes important to explore post-closing transition assistance, extension of that for additional clinical work in the practice and/or to “carve out” from any restrictive covenants that may come into play in the sale of your practice.
When?
When is your desired sale date—and then work backwards from there with your team of advisors to strategically plan for your practice sale/transition.
Why?
What are you trying to accomplish i.e. what are your goals? Is it simply to retire? To maximize value? To minimize tax impact? To ensure patient and staff continuity? All of the above? Other?
How?
How will you find your buyer(s)? Will it be through an internal succession plan? Through networking? Through listing/advertising through appropriate confidential channels?
Contact the team at NC Planning with any questions.
