Maximising the value of your practice
When you’re thinking of selling your practice, you of course want to achieve the maximum value for all the hard work you’ve invested into it. To check if you’ve maximised the goodwill value, you can ask three key questions:
- Have you made the most of every income opportunity?
This can be as simple as making sure you’re fully utilising the space you’ve got in your building, optimising your diary or looking at your mix of treatments.
- Is your business as cost effective as it could be?
Doing rough calculations on your treatment costs to ensure they’re all giving you a net profit is a good place to start. Check your payment plans and the fee category your patients are on to ensure it reflects the treatment they now need.
- Is your practice a desirable purchase?
Take an objective look at the practice with fresh eyes, is the internal and external appearance desirable? Will purchasers have to spend money as soon as they complete? Review the patient journey using our template as a guide to what you should look at when assessing your practice.
Identifying areas for change could really impact your bottom line which will help to get the best return on your investment. Read even more about possible changes in our blog.
If you’re thinking about selling your practice it’s potentially in line with your thoughts of retirement. If so, our blog 'thinking about retiring from dentistry?' has ideas on what you need to consider in your plans, when they should start and who you should speak to for advice. Julie Leddy, Business Development Consultant, also shares her observations on the common pitfalls in the lead up to retirement in her blog Intentions vs Reality.
If, as part of your retirement, you’re thinking of succession planning, a 50:50 equity partnership with Simplyhealth Dental Partnerships may be an option. If and when you wish to leave the partnership we take on responsibility for finding a suitable successor, you can be rest assured that the legacy and heritage of your practice will continue. The Simplyhealth Dental Partnerships booklet contains more information or visit our website to find out more about this.
Selling a practice is a team effort, you’ll be joining forces with a group of handpicked experts that are all working towards achieving a smooth sale.
- Practice Agency
Practice agencies specialise in dental practice sales and valuations. They’ll support you in finding the right, engaged and viable buyers and will market your business so its value is demonstrated in the best way.
There are several major dental practice brokerages in the UK, all of which can be found with a simple google search. Before choosing a broker to work for you, make sure you meet a few of them first to find the best fit for you. Ask for some testimonials of clients that you can talk to in order to understand what the process is like and what their experience with the broker was like.
When selling a practice there are many items that need careful and detailed consideration to ensure you have a smooth and successful sale. It is important you find a legal advisor who has dental market expertise so they understand the nuances of a dental practice, employee contracts, what warranties and covenants will be of use in the contract and any considerations for your regulatory body.
If you’re looking for a legal specialist, with dental experience, you can find a list of firms on the NASDAL directory here.
Engage with financial specialists to ensure you have an accurate valuation of the practice Goodwill and, if applicable, the property. They will help you to prepare the finances that will need to be shared with the buyer, demonstrating the practice value. And can support you with your retirement planning including ensuring your retirement fund is healthy and how tax could affect it. You can find a list of NASDAL accountants here