Over the years, I have been asked countless times to assist dentists in planning a successful exit from their dental practice, which is no mean feat.
Here is a basic overview as a starting point through the exit transition that may help those contemplating this journey.
Exiting a dental practice is a significant decision that requires careful consideration and meticulous planning. Whether you’re retiring or pursuing other opportunities, a successful exit from your dental practice is crucial to safeguarding your legacy and ensuring a smooth transition for you and your patients. Expert planning is essential in navigating this process’s complexities and maximising your practice’s value.
- Start Early:
- The key to a successful dental practice exit is planning well in advance.
- Early planning allows you to address potential challenges, optimise the value of your practice, and make informed decisions about the future.
- Consider your personal and financial goals, and work with a team of professionals, including financial advisors, accountants, and legal experts, to develop a comprehensive exit strategy.
- Build a Strong Team:
- Understanding the actual value of your dental practice is a critical step in the exit planning process.
- Unfortunately, due to its uniqueness as a specialist business, most accountants do not understand accurately how to value a dental practice.
- Assemble a team of experts familiar with dental practices to guide you through the exit process.
- In addition to financial and legal advisors, engage the services of a dental practice broker who specialises in transitions. Their expertise will prove invaluable in navigating the intricacies of selling a dental practice, from identifying potential buyers to negotiating contracts and considering timing as a significant factor.
- Ensure Regulatory Compliance:
- Compliance with regulatory requirements is paramount when exiting a dental practice.
- Work closely with legal professionals who know their way around a dental practice sale and have dealt with previous practice sales. If not, find ones that have; don’t leave anything to chance.
- Licensing issues, contracts, and other legal obligations can make or break a sale.
- Ensuring your practice complies with all relevant regulations will protect you and the new owner from potential legal challenges.
- Remember, it’s your future, your money, so make it count.
- Communicate with Your Staff and Patients:
- Open and transparent communication with your staff and patients is crucial during exit.
- Inform your team of your plans well in advance, and work collaboratively to ensure a smooth transition.
- Similarly, communicate with your patients about the changes and assure them their care will remain a top priority under the new ownership.
- A significant mistake many principals make is keeping this process secret until the deal is done. I have seen this issue backfire so many times, causing anxiety among staff, new owners and patients alike. It seems when the staff are finally informed, older serving staff members become upset in thinking their relationship with the principal was more solid, and in most cases, they are happy to assist in ensuring a smooth transition, particularly when they know the principal will remain for some time, which is the case ninety per cent of the time.
Successfully exiting a dental practice requires strategic planning, thorough evaluation, and collaboration with a team of experts and key staff members.
By starting the process early, assessing the value of your practice, building a solid support team, ensuring regulatory compliance, and maintaining open communication with staff and patients, you can navigate the complexities of the exit process and secure a positive outcome for all parties involved.
Planning today ensures a brighter and more secure future for both you and the legacy of your dental practice.
I have attached two links to a simple, 10-question survey. You will be surprised by the answers. 85% of dentists who completed these surveys last year needed help tightening their financial well-being.
If you currently own a Dental Practice, click on the Business Risk button below:
If you are a Contractor / Associate, click the Personal Risk button:
Once completed, I will send you an immediate breakdown of the results.
PS: Why not complete both surveys. It only takes less than two minutes with entirely different results.
Kind Regards
Jan Gray
