As a seasoned Principal Dentist, you've dedicated years to building your dental practice, and now retirement is on the horizon. Selling your practice is a significant milestone, and ensuring you get the best value for your life's work is paramount. One strategy that can significantly increase your practice's value is introducing profitable dental plans.
Why Focus On EBITDA?
Before discussing how dental plans can boost your practice's value, let's discuss EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
Potential buyers consider EBITDA an essential financial metric when purchasing a dental practice. It provides a clear picture of your practice's earning potential. The higher your EBITDA, the more attractive your practice is to potential buyers.
Introducing Patient Plan Direct
Patient Plan Direct (PPD) is the UK’s most cost-effective major dental plan provider, offering a straightforward solution to increasing your practice's EBITDA and attractiveness, while simultaneously providing your patients with cost-effective private dental plans. The benefits of introducing dental plans with our support includes:
- Recurring monthly income. Dental plans provide a predictable monthly income, helping you stabilise your practice's cash flow. This stability makes your practice more appealing to potential buyers.
- Encourage regular attendance. Patients on a plan are more inclined to stick to regular dental checkups, which means less white space in the appointment diary and maintaining a regular income for your practice.
- Enhanced patient loyalty. Offering affordable dental plans ensures your patients' continued custom and loyalty to your practice. This can show a healthy retention rate of patients to potential buyers.
- Increased treatment uptake. Plan patients are known to attend more regularly than pay-as-you-go patients. With regular attendance comes the opportunity to ethically up and cross sell cosmetic treatments more often, which can enhance revenue and EBITDA.
- Simplified payment collection. Payments are collected by PPD on the 1st of every month, and in the rare event of a failed collection, a second attempt is automatically scheduled. All these robust processes are managed seamlessly in the background, eliminating the need for any administrative work from your team. The simplified, automated payment collection system will be appealing to potential buyers.
- Savings to impact your bottom line. If you have an existing base of plan patients with another provider, switching to work with us could significantly impact your practice value. With only 500 plan patients, switching from another major provider could result in annual savings in the region of £10,000 per annum – recurring savings year-on-year. When you come to sell, this positive impact to your bottom line will multiple out several times, adding a healthy uplift in your sale price e.g., if you achieve a seven times (x7) multiple, this saving could mean £70,000 more at exit.
When looking for a dental plan provider, PPD prides itself on its low and transparent administration fees, which start from £1.06 per patient per month (including VAT and Worldwide A&E cover for patients). Check out our online savings tool to see how the low administration fee compares to other major dental plan providers, such as Denplan, Practice Plan, and DPAS -Click here to find out more.
Our expert Business Development team also focuses on further growing a practice’s dental plan base, increasing the profit attributed to dental plans.
So, take the first step towards enhancing your practice's profitability and strengthening your EBITDA before you sell. Book a meeting with our expert team today. They will explore how our tailored dental plans can bolster your practice's value and provide a clear roadmap for your practice's financial success. www.patientplandirect.com/contact