Challenges Of Dental Practice Sales

Posted by healthcarebizsales on October 11th, 2022

It is rare to find an individual who has never visited a dentist. From infants to adults and the elderly, the services of a dental professional remain relevant. Even a thriving clinic may need to be sold eventually. The reasons are varied, but few can argue with the fact when the time comes to consider dental practice sales.

Unlike reselling a product, a practice requires careful contemplation and preparation before it changes hands. The dentists who are eager to look for buyers are sure to benefit by considering the following factors and ensuring them perfectly before spreading the word about selling the practice.

Name Change- Every dental clinic is recognized by a name. Sadly, many professionals are interested in popularizing their names and often name the clinic accordingly. This is a foolhardy move, for the new owner may not want to be known by the previous owner’s name. Therefore, it becomes essential to change the name officially and go through the formalities again. While this results in unexpected expenses, it is time-consuming and may delay the sale. While the present dentist may not have any problems with retaining the name of the practice, the purchaser is likely to be unconvinced unless the brand name is changed to something that is not directly related to the previous dentist.

Structuring the Practice- A corporate office or huge business entity operate with different departments to look after specific areas. A small dental practice has a single professional deal with the entire workload, including tending to the patients. Professionals do have equal time to spare for each part of their business. Unfortunately, the prospective buyer often insists on seeing the profits, tax expenses, and liabilities before conducting due diligence. The agreements and existing documents related to both the property and the practice are demanded as well. One may have to share a list of patients to convince the purchaser of the practice's value. Sure, dealing with such pressure and completing everything within a limited time is impossible. It is advisable to hire experienced assistants to manage the finances, deal with the marketing and handle the flow of patients. Getting in touch with a broker proficient in selling healthcare businesses will ease the burden and result in a positive outcome.

Systems Organization- Noting can be streamlined without the aid of technology. However, many small dental clinics may have multiple systems installed but fail to utilize the maximum potential. It is most important to keep the practice well organized so that the entire operations are transparent. Statistics indicate that using multiple tech-enabled systems successfully increases prospective buyers' interest.

A small dental practice sale is not rocket science! It can be done within the shortest possible time by engaging a healthcare business broker to take care of the nitty-gritty. Following the rule of transparency and maintaining all records can help one to sell the practice for a profit without encountering too much trouble.