If you've
decided that it’s the right time to sell your dental practice, have a read of
our step by step guide on how to go about it.
1.
PLAN in
advance (preferably before you make any plans or book your round the world
cruise!). Succession planning is vital
and ideally you should be considering your options at least three years in
advance.
2.
Keep
motivated in running your practice. It
is vital to keep the turnover up as any potential buyer will be looking at your
figures all the way through the sale process, and could demand a reduction in
the sale price to reflect a drop in turnover.
3.
Get a
valuation. This is important so you know
exactly what your practice would be worth on the open market. And even if you are approached privately make
sure you still get an independent valuation and do not accept any offers until
you’ve done this. You might just be
amazed at the true value!
4.
Make
time to sell - if you have agreed to sell to an associate, private individual
or corporate don’t underestimate the time and skill it takes manage the deal
through to completion. It will require your attention for several months. A
reputable agent acting on your behalf could make all the difference to the
deal.
5.
Make
sure you understand current market dynamics in your area. There are currently over 4,300 dentists registered
with us who are looking to buy dental practices in England or Wales, and with 14
banks actively lending to dentists we
know they are not just looking, but have a genuine interest to actually
purchase as well as sufficient access to funds. For more details on funding contact FT&A Finance.
6.
Freehold
or leasehold premises? If leasehold, make sure there are at least 10 years left
to run. If not, then establish if a shorter lease will impact on the goodwill
value. If you want to sell the freehold, arrange for a commercial valuation.
7.
Due
diligence – make sure you have all the essential paperwork required to sell
your practice. This routinely takes 3-8 weeks to complete so the sooner you can
start the better – ideally before you've found a buyer for your practice!
8.
Engage
a specialist dental lawyer - it will certainly make all the difference in the long run.
9.
Think
about what you want to do in the future?
For example, do you want to stay on at the
practice? If so, how many days will you want to work? What associate fee would
you work for?
10. Select the right agent - some agents work
for both the buyer and seller which clearly creates a conflict of interest. It’s worth also checking that they have access
to a good supply of potential purchases and that they always use the open
market when the time comes to the actual sale.
For more information on selling your dental practice visit our website - ft-associates.com
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