North Texas Dentistry Volume 5 Issue 5 | Page 36

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: * * * * * * * * * Employee hours Benefits Insurance benefits Child care Sick days Vacation Cafeteria plan savings Incentive program summary Retirement plan contributions