Has the return to practice made you start thinking fondly of the time you will be transitioning out of your practice as an owner or even retiring altogether?
It makes sense to start thinking that way if you haven’t settled back in, but the result will be much more satisfying if you plan it out and make sure you’re prepared instead of having an evaluation completed and then taking any offer that comes in just so that you can leave.
I have prepared an extensive checklist for you to think about if you are deciding to sell your practice. I usually suggest two to three years of prep if possible, for transitioning.
- Know the NUMBER you need to continue leading the lifestyle you are accustomed to; most dentists don’t change their lifestyle when they retire.
- Have a current VALUATION done for your practice so you have an idea of what it may sell for. Know that COVID has changed valuations.
- Ensure your business and clinical systems are effective and will support a transition, buyers have become very savvy in their due diligence and this can affect the final sale price of your practice.
- Seek pre-transition legal advice so you are aware of any obstacles you may need to overcome prior to the sale as well as any costs you may occur.
- Speak with your accountant so you are confident with your tax strategies around transition.
- Write out your “ideal” transition situation.
- Ensure that all HR documentation is in place, this includes employment contracts, employee manuals, harassment policies and performance reviews
- Have your lease agreements complete with extensions available for a new owner.
- Ensure that your accounting is “clean” of all personal/family expenses for your valuation.
- Try to make sure your metrics are either at or above industry norm. This includes open time, treatment acceptance and billing per hour.
- If you have an associate, ensure that there are current agreements in place.
- Ensure that your software is an accurate reflection of your office for active patients, treatment diagnosed and treatment completed.
Just reading this list probably makes your head spin, I can completely understand that.
Just as you would hire a project manager or contractor for any large project you are working on this is probably one of the most important projects of your life. As a Practice Management Coach, I am able guide you through this process so that you can retire stress free and happily in the style which you desire.