The strong numbers have played a part in the increase in practice sales. Practice owners who are over 55, are seeing the strong numbers and returns in their portfolios and deciding now is the time to retire. Buyers are also watching the economy and realizing it’s a good time to buy a practice. Interest rates are still good at between 5.25% and 5.5%. Consumer’s discretionary income is up freeing funds for consumers to do elective and cosmetic dentistry. (I know you shouldn’t base your dentistry on discretionary income, but many do).
The result of all of this is that practice listings and sales are up. We typically carry an inventory of 10 to 15 practices and we’re now up to approximately 25 practices. We have spoken to other brokers and most are experiencing a similar increase in business. The interesting thing is that valuations are still staying true to normal formulas and historical numbers.
What this means to you is you can either be a participant in this booming market, or you can be a bystander and watch opportunity pass you by. If you would like to get any information on any of our practices, let us know. Consultations and phone calls are always free!