When selling your dental practice there is a seemingly endless maze of considerations and potential stumbling blocks to navigate. Without help and expert advice, you will find yourself stuck in the middle of this labyrinth not knowing where to turn.
However, with a little knowledge and experience some confusion can be avoided. Here are a few relatively simple tips that will help to facilitate the smooth sale of your practice for the maximum value.
1. Get the price right
Valuation and pricing your business correctly for the market is paramount. Expert advice in this forever-fluctuating arena is equally important. Virtually all buyers will have undertaken an independent valuation before purchasing a practice; if your price is unrealistically high it will get knocked down, so it is important to get it right first.
The trick is to think like a buyer. Looking at your own business through critical eyes and as if you were the purchaser, will give you an insight into what others might see. Ask yourself: how does it look and feel? Is it fit for purpose? First impressions of the practice are very important and the asking price is a significant part of this. View other practices from similar price ranges: would you consider them to be a bargain, fairly priced or overpriced? Your expert adviser will have comparable evidence from which to draw – the more experienced the adviser, the more evidence there will be.
2. Ensure the property is in order
Making sure that your property lease is in order and that you have sought out clear and succinct advice is also important. For instance, if your property is leasehold, are you offering a sufficient lease term to make it worthwhile for the buyer?
It is also worth checking that all regulatory data is accurate and correct. Your practice clearly wouldn’t be trading if you weren’t CQC and HTM01-05 compliant, but do you have all the necessary documentation to hand should you need it?
3. Ensure all operations are in order
Every experienced buyer understands that all businesses have their own staffing challenges and issues, so absolute honesty is the key to maintain the credibility of your business valuation. If you paint too perfect a picture then a potential buyer may be suspicious. Equally, if you have got a lot of staffing issues, then this can present problems as well.
If the practice has vacancies then highlight this. If you choose not to replace missing associates, turnover will go down and the value of the business will follow suit. Too much vacant chair space will cost you in the long run and will be reflected in your income and valuation.
4. Planning and preparation
Preparation is key; this is the most significant aspect of getting ready for any sale. Insufficient planning and preparation may ultimately cost you. Many deals are agreed quickly but end up going nowhere due to a failure to sufficiently plan in advance.
It is important, therefore, to collect all the key pieces of information a prospective purchaser might want. One of the most fundamental considerations in any sale process is making sure that profit and loss accounts are relevant; any NHS vital signs reports need to be up-to-date, and all other due diligence information that any reasonable buyer will want should be available and easily accessible.
5. Get your adviser right
The best option is always to turn to a company who can offer both marketing expertise and professional accountability; an agency with experience in the dental sector and that also has professional accreditations is ideal.
By turning to a company that understands the dental industry like Christie+Co, you can be sure that all considerations are covered and your best interests as a seller come first.
To discuss how Christie + Co might help you achieve your future plans please contact Simon Hughes on 020 7227 0749
BIO:
Simon Hughes joined Christie + Co in 1987 and has responsibility for the further expansion of its brokerage services into the Primary Care sectors of dentistry and GP surgery sectors. In the past three years, Christie + Co has advised, valued or sold almost £1 billion worth of businesses. Simon heads up a dedicated team of specialist advisers and agents based in regional locations throughout the UK.