April 2, 2024

Are you considering selling your dental practice? Then I suggest you keep your foot on the gas and rev up business all the way through the sale. It may be tempting to go into retirement mode sooner rather than later. By that, I mean you may reduce your office hours, lighten your daily case load, or stop putting time and effort into marketing the practice. But remember, no one is going to pay you for potential and everyone is looking for a reason to pay you less. Do not give them that reason!

I’ve seen it time and time again. A dental practice experiences a successful year marked by high earnings and growth. Following that successful year, the owner is as confident as ever in the value of the practice and decides to sell. With his mind set on retirement, he proceeds to work less days and cut down his hours. As a result, earnings fall drastically, yet the owner insists on listing the practice at 80% of last year’s earnings. Not so fast!

Interested buyers will always ask to see the practice’s current profit and loss statement, which will show the decline in revenue. Suddenly, offers for the practice are consistently dropping each and every day because its performance year-to-date has been sub-par. Buyers are concerned with how a practice is currently doing, not how it previously performed, since they can’t put potential in their bank accounts.

If you want to sell your practice for top dollar, then keeping your earnings up to the very end is key. Bearing in mind that you can’t sell potential, do yourself a favor and keep your foot on the gas.

Questions or comments? Please contact us at (917) 444-2879 or Admin@AndrieuxLaw.com.