practice transitions
PRACTICE VALUE PROTECTION
Y
Richard V. Lyschik, DDS, FAGD
our dental practice is a perishable commodity. When you
are no longer practicing, the value of your dental business
will decline from its peak value to the value of used dental
equipment in about six months. (It is no relief to know that
equipment is usually only 8-15% of your total practice’s value!)
To ensure the continued high-quality care of your patients, and
to provide for your staff, it is imperative that you have a succession plan that can be quickly activated if something happens to
you.
Your succession plan is only as strong as your relationships. You
may choose to bring on an associate, a partner, or establish an
incremental plan for turnover to another doctor. You can create
a group of supportive colleagues who may act as interim
replacements for your practice, and you can offer to be the same
for them. (Be cautious when choosing your supporting doctors.
It would be wise to team up with a doctor who practices at least
10 miles away from your office. This way, your patients will not
permanently gravitate to another local practitioner, and the
value of your practice will remain intact!)
Always remember that the goal is to find another dentist to take
responsibility for the practice ASAP. The value of the practice is
in a steep downward spiral should something unexpected happen. You need a streamlined process in place so decisions can
be made quickly to preserve the value of your practice.
Whatever your plan is, make sure you put it in writing!
Good recordkeeping is an essential component to any successful
business. If the doctor dies, it can sometimes take weeks just to
find the most important paperwork.
36 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com
At any time, you, your accountant, and your practice manager
should be able to easily locate the following items:
Profit & Loss records
Tax Returns (past 3 years)
Production & Collection Reports
Fee Schedule
Up-to-date equipment list
Employee information:
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Employee hours
Benefits
Insurance benefits
Child care
Sick days
Vacation
Cafeteria plan savings
Incentive program summary
Retirement plan
contributions