If you try to sell your own practice, what
could you possibly say to a buyer about the
actual value of your own assets and make
yourself believable? No matter how hard
you try to be objective, your very position
of self-interest will cause the buyer to be
suspicious. After all, you are the one who
stands to gain the most from an overinflated estimation of your practice’s value.
And then there is the specialty practice. Dental specialty practices are the most difficult
practices to market. The
business of most specialty
practices is extremely relationship dependent. The established specialist has spent years
developing a name and reputation in the
community, as well as close personal,
working relationships with his/her referring general dentist and as in many cases
nowadays, other health care providers as
well. The process of transferring that goodwill to a successor can be very tricky, and
must be planned well in advance of the
specialist’s eventual retirement.
As we all know, there are fewer specialists
than general dentists. With such a reduced
“inventory” of specialists, it can take years
to locate a qualified candidate with
the right attitude and ability to
blend into your practice style
and philosophy of patient
care. Credentials can usually
determine ability, but attitude is a
whole different matter. With so
much goodwill at stake, the purchaser
candidate must possess a willingness to
learn the nuances of running and maintaining a successful practice from the
established doctor. Too many young dentists wishing to join a practice, tend to
think that “being a good clinician” is all
you need to be successful in a specialty
practice. They usually have much to learn
about dental and medical peer relationships and how those relationships need to
be handled critically and precisely in order
to maintain a growing practice.
viding implant, TMJ, facial pain, orthodontics and/or extensive surgical services.
There are few candidates available with the
skills needed to take over a practice such as
this. The more comprehensive, specialized
and inclusive the services provided within
the practice, the fewer potential purchaser
candidates there are for the practice. At
times, a practice’s value may actually suffer
because it is less marketable!
As a result, both of these groups of professionals, whether a specialist or a general
dentist with the above additional components to the practice, need to consider
making retirement plans years in advance
of most of his/her colleagues. The process
of practice transition will most likely have
to include a long-term mentor relationship.
Ideally, the process of locating a candidate
should begin two to five years before the
targeted retirement date. It will take that
long to locate a qualified candidate and
train them as your successor. In certain situations, the seller need not necessarily
retire completely from the practice after
the transition. There may be additional
benefits to both dentists by keeping the
seller around even longer.
If your practice provides these services,
then making plans for practice transition
cannot begin too early. If you fail to plan –
then you plan to fail.
You’ve worked too hard to build one of
your lifetime’s greatest assets – your dental
practice. It’s not too early to better understand the value of your practice and the
complexities involved in transitioning it.
IDEALLY, THE PROCESS
OF LOCATING A CANDIDATE
SHOULD BEGIN TWO TO FIVE
YEARS BEFORE THE TARGETED
RETIREMENT DATE.
You may wish to seek advice now –
while the practice is at its peak!
Dr. Richard V. Lyschik’s
transition, management
and coaching experiences go beyond the traditional single general
dental practice sale. His
Dental Office Network
Team has helped thousands of dentists acquire,
expand, merge multiple practices, build from the
ground up, as well as guided older, disabled and
“burned out” dentists sell with dignity. The Practice
Rescue Department has resurrected practices in
demise, saving them from imminent disaster. Over
50% of dentists return 2-3 years later to invest in
another dental practice! Dr. Lyschik has broken
numerous industry records as the highest producer
in the country!