Recently you received two emails with links to a practice valuation calculator. We did not expect so many practice owners to click the links and try it out, what’s more, we didn’t expect so many to contact us with further questions on the subject.
I thought I would try to answer some of the questions you asked or some you may be wondering about as well.
What’s in the future for practice values?
Who is likely to want to buy my practice?
When are we going to get back to business?
How long will it take to get back up to speed?
Do you think things will get back to being the same as before Covid19?
House prices are dropping. Will practice values suffer too?
In my opinion, there is some positive from this dilemma, and I am sure not all will agree.
For too long now, we have seen new practices pop up everywhere, and in a lot of cases not where they should be. Dentists have been spoilt when it comes to having access to cheap funding. Consequently, they have borrowed excessive amounts on the pretence they can make a new or rundown practice turn a profit within a short time. This is a classic example. Maybe it needed to happen, so some owners realised like older established principals it’s all about building a solid patient base and not purely about profit. Look after the patients and profit will follow!
For years I have had conversations with potential buyers who I can pretty much understand whether they will make it or not by the questions they ask.
It doesn’t take Einstein to understand which buyer has a better chance of survival in the long term, and interestingly we see more Buyer one practices for sale again within two-three years.
I hope this has made some sense in this crazy time we are locked in right now.
If you have time and would like to mess with the Appraisal calculators on our site, please feel free to click the links below.
I would like to offer you a Complementary Exit Planning Consultation about your practice. It takes just a few minutes over the phone.
Click the button below to register for your Complementary consultation:Click to Register
If you would like to get some idea of what your practice could be worth, click this button below – it takes less than a minute:What is your Practice Worth?