How to Determine the Selling Price of Your Practice
Want to know how you can determine the selling price of your practice? Do you know why it is smart to hire dental practice brokers?
Watch the eighth episode of the Dental Marketing Podcast with Chris Pistorius, Founder & CEO of Kickstart Dental, and Megan Urban – Dental Broker at Omni Practice Group, to get your answers!
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Choosing between Buying an Existing Practice Or Doing a New Build
Choosing between buying an existing practice and doing a start-up practice can be one of the biggest decisions of your life. Here are four considerations and two suggestions for when you are contemplating.
The four considerations:
Market Saturation – How many dentists are practicing in the area you are considering? Hardly any? One on every corner? Somewhere in between? Establishing traction in a high competition area will require a much higher marketing budget. Do you know your marketing budget? Do you have a marketing plan?
Available Practices for Sale – How many practices are for sale in the area you are considering? Do those practices have a broker representing them? Broker representation usually equates to well-substantiated pricing and a defined plan for acquisition. For-sale-by-owner practices can be more of a wild card.
Population Demographics – If you are considering an area for a new build, will the demographics of the area you are considering support your business plan?
Personal Financial Situation – Do you have the financial reserves to weather a start-up? While there are pros and cons to both routes, buying an established practice certainly generates more initial cash flow.
The two suggestions:
Get Help – This will be one of the biggest decisions of your life, whichever route you take. There are some truly skilled and experienced professionals out there that will help guide you through this process in an efficient manner and allow you to minimize risk while seizing the opportunity.
If You Can Produce, Get Moving – Are you a high producer? Can you manage and lead? Can you do great dentistry without someone looking over your shoulder? If you answered yes to these questions, what are you waiting for?
Read MoreDentist Entrepreneurial Summit 2021
What you receive when you come to the GIG M.BF. Entrepreneurial Mastermind Summit:
The GIG M.B.F. Entrepreneurial Summit is designed as a total support system for Dentists/entrepreneurs with their sights set on “sky’s-the-limit” growth and the freedom to create the kind of richly satisfying life they dreamed of when they made the decision to become a dentist.
With all the changes in dentistry and transitions with our world and life, this summit will be a way to re-energize, renew and rediscover new ways to keep our practices growing and thriving.
The GIG M.B.F. Entrepreneurial Summit is about you and your growth. You decide on your most important goals and on your game plan. We provide the structure, tools, and support that give you a new perspective on your business and a fresh way of thinking – and keep you on track to turn your new goals into reality, and to keep us moving forward.
Here’s how that happens:
1. GIG team founders, speakers, and Mastery Leadership Directors will facilitate and provide the structure for each Entrepreneurial Mastermind Summit. Much of the learning and success will come from being and interacting with like-minded dentists who encourage, challenge, and support each other.
2. At the GIG Summit, you’ll have plenty of time to focus on and strategize what’s most pressing in your business right now – and get objective feedback from the GIG team and the other successful dentists in the room. Fresh perspectives and breakthrough insights are inevitable, making it a mind-stretching, life-changing two-and-a-half-days.
3. At the end of the two-and-a-half-day Mastermind Summit, you’ll leave armed with new thinking and tools PLUS a plan with prioritized, concrete action steps for the next 6 to 12 months to share with your team. New ideas are energizing, but it’s the clarity about the action steps needed that get things done.
4. GIG Summit will provide entrepreneurial tools, support material, etc. which will accelerate learning of the different “modules.” Each dentist will end up individualizing their learning.
Why GIG Summit Now?
Growth Into Greatness Institute over the last two decades has supported Dentists through all types of practice transitions. This community of dentists will be actively engaged in new growth, tools, and support to keep reaching higher goals and personal, professional aspirations.
We have intentionally rescheduled this meeting for October 21-23, 2021, because we expect the Coronavirus to have been defeated by then and dentists will want to return to C.E. and professional growth, profitability, and success. A like-minded community of dentists sharing their experiences in this “rebirth” will surely be beneficial to everyone. Enrollment applications and RSVPs are now being accepted. The time is now We all need each other to be strong. Let’s press on together!
CLICK HERE TO DOWNLOAD FLYER & REGISTRATION FORM
Read MoreThe Importance of Owner Flexibility
You shouldn’t expect to sell your practice overnight. For every practice that sells quickly, there are a hundred that take many months or even years to sell. Having the correct mindset and understanding of what you must do ahead of time to prepare for the sale of your practice will help you avoid a range of headaches and dramatically increase your overall chances of success.
First, and arguably most importantly, you must have the right frame of mind. Flexibility is a key attribute for any dentist looking to sell his or her practice. There are many variables involved in selling a practice and that means much can go wrong. An inflexible owner can even irritate prospective buyers and inadvertently sabotage what could have otherwise been a workable deal.
Be Flexible on Price
A key part of being flexible is to be ready and willing to accept a lower price. There are many reasons why practice owners may fail to achieve the price they want for their practice. These factors range from lack of management depth and lack of geographical distribution to an overreliance on a handful of customers or key clients. Of course, one way to address this problem is to work with a practice broker in advance, so that such price issues are minimized or eliminated altogether.
Be Prepared to Compromise
In the process of selling your practice, you may want to achieve confidentiality and sell your practice quickly and for the price you want. However, the fact is that most sellers find that it is possible to have confidentiality, speed, and the price you want, but not all three. Ultimately, you’ll have to pick two of the three variables that are most important to you.
Be Patient
A third way in which practice owner flexibility can boost the chances of success is to embrace the virtue of patience. By accepting the fact that practices can “sit on the shelf” for a considerable period of time, you are shifting your expectations. This realization can help reduce your stress level. The fact is that stressed out owners are far more likely to make mistakes.
Sometimes Losing is Really Winning
A fourth way in which practice owners should be flexible is realizing that you and your lawyer will not win every single fight. There will be many points of contention, and a smart dealmaker realizes that it is often better to have a good deal than a perfect deal. You may have to make sacrifices in order to sell your practice. Simply stated, you shouldn’t expect the other side to lose every point.
At the end of the day, a savvy practice owner is one that never loses sight of the final goal. Your goal is to sell your practice. Seeing the situation from the buyer’s perspective will help you make better decisions on how you present your practice and interact with prospective buyers. Maintaining a flexible attitude with prospective buyers helps to position you as a reasonable person who wants to make a deal. Goodwill can go a long way when obstacles do arise.
Read MoreWhen is the Right Time to Have a Practice Valuation?
6 times a dental practice owner would need to get a practice valuation from an accredited expert. With Kevin Brady, Practice Transition Advisor, OMNI Practice Group.
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