Biggest Mistakes You Should Avoid When Selling Your Dental Practice
Selling a dental practice is a long process that requires a lot of careful thinking.
Since you only get one shot to get things right, you have to be well-informed and prepared.
Although certain road bumps are going to come up along the way, avoiding common mistakes is the key to ensuring that these road bumps won’t turn into road-closing obstructions.
What You Shouldn’t Do When Selling Your Dental Practice
Sharing Too Much Information
Did you know that it’s possible for the selling process to take up to about nine months to complete? During this period, you should make sure that the transition is kept private from your employees and customers.
Otherwise, your customers may decide to bring their business elsewhere, and your staff may decide to leave even before you get to provide the details about the transition. When your business drops, you may have to decrease the selling price for your dental practice and look desperate to your prospective buyers.
Allowing the Buyer to Value Your Business
It doesn’t matter if the prospective buyer is your friend or an associate. When it comes to the valuation of your dental practice, you have to take control. It’s best to have it prepared on an independent basis and make sure that you check what your practice is worth in the open market.
Inaccurate Valuation of Your Dental Practice
When your dental practice is inaccurately valued, it can cause you to lose out on a great deal of money. Additionally, you can also end up deterring your prospective buyers if you ask for too much. To get the most accurate valuation possible, it’s extremely important to make use of several valuation methods that are best suited to your specific situation.
Selling Your Dental Practice Yourself
If you think that you can save more money if you go through the selling process alone, think again. In the long run, this decision is going to cost you a great deal. Considering the value of this asset, you may want to consider enlisting the help of a specialist. Unless you have all the expertise and skills necessary to make sure that the process of selling your dental practice goes off without a hitch, you can choose to sell it yourself.
It’s best to bring in some professional help by having a qualified transition team composed of a transition specialist, an attorney, and a financial advisor. Besides giving your valuable advice, you can also take advantage of their knowledge and experience throughout the course of the selling process.
Initiating the Transition Before You’re Actually Ready
Determining if you’re actually ready to sell is a must before you decide to sell your practice. After all, you wouldn’t want poor financial planning to become the reason why you change your mind about selling when you’re halfway through the process.
This usually happens to those who fail to hire a trusted financial planner who can determine if they’re ready to set realistic financial goals before they retire or before they sell their dental practice.
Need Help Selling a Dental Practice?
Are you looking to find a team to help you put a dental practice up for sale? Viper Partners is the best transition advisor around.
Our team of experts leverages our long-standing relationships with various equity firms, finance partners, banks, analysts, and lawyers to best serve you and bring you the best deals. Find out if Viper is a good fit for you and your dental practice!
Contact us today to get a free consultation and valuation of your practice!