When is it time? How long a process? How should I prepare myself? Many of these questions are just the tip of the iceberg for many practicing dentists. Generally, if you're entertaining selling your dental practice start doing some research 24-36 months prior, so you become well informed of your options. The model has been changing, as many more DSO's (Dental Service Organizations) have been acquiring dental practices these days. There are still practicing dental associates in the field that have aspired to own their own practice, and are usually on the hunt after some time in the field practicing dentistry. That time frame differs depending on the associate's comfort zone.
Many DSO approaches to acquiring a dental practice may be slightly different, however, it is up to the selling dentist to see which organization aligns closer to their goals and objectives when going through the transition process. The DSO representative will explain the process in depth. In order to evaluate the dental practice, the DSO representative will ask you to share financial information such as Business Tax Returns, most recent P&L statements, Accounts Receivable & Accounts Payable listings, Insurance Plan Participation, Insurance Reports, Production & Performance Reports, Fee Schedules and other asset and liability listings(s)
An office visit will be arranged in order to ensure that the DSO representative can evaluate the condition of office, dental equipment on hand, and the community you practice in. This meeting can take place after work hours to ensure a high level of discretion, concerning current employees. It is extremely important for the practice owner to be cognizant of the financial trending of the practice in the last 24-36 months. The stronger the collection base and the better the trending during this time frame will most likely lead to a more fiscally sound proposal. In other words, "the most bang for your buck." The stronger the collections and financial trending of the business, the more value you're able to add to the selling price of the practice.
Surprisingly enough, many dental practice owners do not pay attention to these basic details and are disappointed when an offer or LOI is proposed. They can't seem to understand why their practice has lost value. When the time arises when you're considering transitioning out of your dental practice, please contact Capital Biz Solutions, Inc on the web at capitalbizsolutions.com. We are registered brokers with several Dental Service Organizations throughout the nation, looking to bring you the best fit for your practice. Please feel free to contact us at 508 864-7758. We look forward to assisting you transition seamlessly out of your dental practice, whenever you feel it may be the appropriate time.