Thinking about selling your practice on your own? You may want to think twice about this type of endeavor. Successfully selling a medical practice requires an entirely different type of skill set than practicing medicine. You may have achieved great success building your practice, mentoring associates and cementing patient relationships, but actually selling a practice is entirely different.
Congratulations! You are at the stage of your dental career where you are finally ready to sell your practice. Years of hard work establishing and growing your practice are about to pay off! Whether you are headed towards your retirement or have new career ambitions in mind, this final decision may be the most important of your professional career.
For a seller, it is very important to have a practice valuation performed because it confirms the validity of your selling price. It can also limit "low-ball" offers from buyers looking for a bargain. This can save time, money and headache by diverting the deal hunters and allowing us to focus on real buyer. It also shows potential buyers that you are serious about selling your practice and have done the necessary legwork to prepare the practice for sale.
Why is cash flow important? Cash Flow is a practices earnings before interest, depreciation and amortization and any other personal financial add-backs that will not transfer to the new owner. Cash flow is important because it is used to determine the profitability of a practices operations. So how can this indicator make or break the sale of an practice?
Deciding to sell your practice is a very important decision. Here are 10 key tips to consider prior to, during and after your sale.