|Top 10 Things
You should be thinking about if you want to sell your
dental practice in about 5 years
First of all, this is a good time to ask! You still have time to get your financial picture in order, buy any new
equipment you decide on and get to use it for several years, and get things generally spruced up. Remember,
to sell your practice, you usually need to provide 3 years’ worth of corporate and personal tax returns (yes,
complete copies of both) to a buyer’s lender and consultants. Now is the time to plan and get organized!
1. Get your Tax Returns lookin’ good!
Concentrate on the “bottom line,” that is, you should be profitable. If you are running personal things through
your business, such as inflating categories like office supplies, you might consider ceasing that practice for the
3 years before a sale to maximize your practice sale profits.
2. Employee Wages
Your employee wages should be an appropriate percentage of your collections, probably somewhere between
20 – 27% for general practices and much lower for most specialty practices. Try to stabilize staff and pay each
staff member an appropriate wage for their job position.
3. Hygienists' Salaries
The salaries for your hygienists should be appropriate for each hygienist’s production. Hygienists should
usually produce about 3 to 3 1/2 times their salary. If their production isn't quite up to that standard, consider
hiring a hygiene consultant to help.
4. Standard Systems
Your systems should be standard, up-to-date, and utilized. If not, consider hiring a practice management
consultant to assist you.
5. Associate Dentists
Generally, it is not a good idea to hire an associate dentist if you have not been using one or do not absolutely
need one. Remember, associates cannot be bound by covenants not to compete.
Don’t worry particularly about getting the newest, latest, and/or best technology unless you really want it. It
might help your sale somewhat, but most practices that are sold do not have it.
7. General and Office Equipment
Do keep your general and office equipment relatively new, less than 10 years old for dental equipment and less
than 5 years old for office equipment. If you need to buy equipment, buy it now so you can enjoy it for a while.
8. Clean Up
Clean out all drawers, stacks, messes and piles. Throw out all unnecessary and unused stuff.
If you haven’t computerized yet, now is the time to do it. Many of the relatively inexpensive software programs
seem almost as good as the very expensive: pick a standard, commonly used program and go for it. If you are
computerized, be sure you have relatively modern equipment and monitors (probably less than 3 years old).
10. Reception Area
Get and keep your reception room decorated, clean and very neat. The first impression really counts.
Consider hiring a professional decorator, even if just for that room.
|Bette Robin 714-421-4407
Dentist, Attorney, Real Estate Broker 877-377-6246
17482 Irvine Blvd., Ste. E
Tustin, CA 92780
SELECT PRACTICE SERVICES, INC.