3
Evaluate what ’ s working ( and what isn ’ t )
Consider the state of your practice . Look at trends in new patients and treatments . Review your accepted plans along with the fee schedules and the efficiency of obtaining reimbursement . See which plans provide the most bang for the buck and which have become an albatross around the practice ’ s neck ! You may need to do a cost-benefit analysis to decide which to keep as is , which to attempt to renegotiate , and which no longer make sense for your practice .
If you ’ re bursting at the seams , an associate who wants a path to ownership could be a great solution .
4
Weigh updates to your technology and equipment
Today ’ s early- and mid-career dentists expect digital radiography and functional equipment . They don ’ t want to have to invest in major upgrades in their first year of ownership .
You don ’ t need to update everything , though . If your compressor will function well for another five years , great ! However , if things really do need to be replaced , go ahead and do it so a buyer doesn ’ t have to address replacement cost in the offer . Plus , you might as well get to enjoy using it for a little while .
5
Identify your preferences
Think through your goals and best-case scenarios . Do you want a gradual transition while onboarding a new dentist who will buy you out ? ( And if so — do you have enough space and patients to keep you both busy ? Are you willing to watch YOUR patients be treated by a different doctor ?)
Many early-career dentists desire some hands-on mentorship , whether to build their dental skills or to learn how to run a business . Would you be open to that ? Or would you prefer to sell 100 % and walk away ?
Be sure to talk to your family . They almost certainly have ideas about ideal timing and what might fit your personal style !
6
Consider your real estate
If you own your building , do you want to sell it as part of your practice sale ? Otherwise , are you willing to become a landlord , with all that entails ?
If you lease your space , make sure you have a long-term lease in place , with rent at or below market rate and transferable to a buyer . The practice will not be worth as much without a place to practice from .
7
Get your practice financials in order
Buyers — and their banks — need organized books to evaluate the practice ’ s value . I ’ ve seen sales fall through when sellers couldn ’ t produce requested information quickly , as it casts doubts about how well the practice operates . Work with an accountant to get your financials in order , then update the files periodically so you ’ re ready when a buyer asks .
8
Evaluate your fees
If it ’ s been a few years since you raised your fees , take a look at the ADA ’ s Dental Fee Survey ( free to members ) to make sure you ’ re in line with your local market . Patients are much more willing to tolerate an increase from their long-term doctor than a new buyer , so a buyer will look more favorably on the practice if the fees are current .
9
Document your practice ’ s policies and processes
Buyers want to know that the practice runs smoothly . Take some time to document how things work : roles , responsibilities , insurance and collections policies , and so on . Also document things like average treatment wait type , new patients per month , production reports ( by procedure ), referral patterns , etc . This information will help you present a clear picture of a successful , lucrative practice that ’ s worth top dollar .
10
Boost your curb appeal
First impressions matter . You ’ re more willing to offer a full asking price for a house that ’ s freshly painted , well-kept , and decluttered . Buyers will do the same for your practice ! Empty out that overflowing storeroom , ditch the old dental journals , and clean everything top-to-bottom . ( Yes , even under the cabinets .) Consider a fresh coat of paint , updated landscaping , and recovering the chairs .
Revisit this list periodically to make sure you ’ re taking good care of your practice and your future , and start thinking about how to answer buyers ’ questions .
When you begin thinking that it ’ s time to retire , create your free ADA Practice Transitions profile for help finding the right buyer who can continue caring for your patients .
About the Author
Dr . Ebert built a successful dental practice from scratch . After selling her practice , she became the Dental Director of a Federally Qualified Health Center where she provided high quality care to underserved populations . She joined the ADAPT team as the ADA Advisor to provide real and tangible benefits to dentists as well as helping to address access to care issues across the country . She is currently ADAPT ’ s VP of Dental Practice & Relationship Management .
JULY / AUGUST 2022 | PENNSYLVANIA DENTAL JOURNAL 27