One of the most common questions we get is, “When should I sell my dental practice?”
It’s understandable that this is the first concern most dentists have. You know you want to sell eventually, but how do you know when the time is right? You’ve put endless hours into your practice, so of course you want to be certain you make the right sale at exactly the right time.
Most brokers will tell you the best time to sell is NOW, because that’s their job! But in our experience, you’re ready to sell when you can answer “yes” to two specific questions.
Questions to Ask if You’re Considering Selling Your Practice
Question 1: Is there something else I would rather do?
You’ve spent years and years working as a dentist — is it time to put your energy towards something else? Perhaps you find yourself longing to spend more time with your family. Maybe you want to volunteer at your church or local charity. You may even want to take off and travel the word. Perhaps you’re considering a career change or focusing on a favorite hobby.
Being a dentist is rewarding, but if you find that you’re dreaming of doing something else, it may be time to sell.
Question 2: Can I afford to retire?
This question can be more difficult to answer — and it’s crucial that you know the answer. Running out of money is the worst case scenario, so speak with a professional, like a CPA or financial planner, to be certain that you have enough saved for retirement. Don’t count on the money from the sale alone to fund your future! Early retirement planning will ensure the sale proceeds supplement your already robust retirement account.
In the short video below, Dr. Terry Watson and Frank J. Brown, J.D., LL.M. further explain the importance of these two questions in determining the timing of your sale.
One More Consideration
If you are trying to maximize the sales price, the best time to sell your dental practice is when your collections have peaked. Usually the higher the collections, the higher the sale price. Keeping in mind your weekly schedule, time off, procedures referred out, new patient count, and overall productivity in the practice will help to keep your collections at their highest level.
Still Have Questions?
Selling your dental practice doesn’t need to be overwhelming. When you have Watson Brown by your side, you can rest assured that your practice will be taken care of and you’ll get the best deal possible. If you’re interested in selling your practice and have questions, contact us — we’d love to discuss your options and create the perfect plan for your needs.