Want to know the secret to getting top dollar for your dental practice? It's not about flashy equipment or last-minute improvements. Based on our experience guiding hundreds of successful practice transitions, it comes down to something far more fundamental: preparation.
Start with the Foundation: Your Financials
Your practice's financial story needs to be crystal clear. This means having command of three crucial areas:
- Profit & Loss Statements: These should align perfectly with your practice management software and collection reports. Whether you work with a CPA or handle books internally, consistency between these numbers is key.
- Clean Payroll Records: We often see great practices undervalued because their payroll reporting isn't properly documented. Make sure you're accurately tracking all staff compensation, including benefits and 401k contributions.
- Smart Expense Management: Large equipment purchases or new subscriptions right before a sale can hurt your value. Why? Because buyers care more about consistent profit than new technology.
Maintain Strong Operations
The time to step back isn't when you're planning to sell - it's after the sale closes. Buyers and banks typically review your last 12-24 months of performance, so maintaining strong, consistent operations is crucial. This means:
Keep your schedule full and production steady. Sporadic drops in cash flow or production can significantly impact your valuation.
Stay engaged in your practice. While it's tempting to reduce hours as you think about selling, remember that your practice is only as valuable as its most recent performance.
Focus on sustainable growth. Consistent, modest growth often proves more valuable than dramatic spikes or volatile performance.
Create a Strong First Impression
Today's buyers start evaluating your practice long before they walk through your door. Your practice's appearance - both online and physical - matters more than you might think:
Review your online presence. Strong Google reviews and a professional website aren't just for patients - they're often a buyer's first impression of your practice.
Walk through your front door like a patient or buyer would. Take an honest look at your waiting room, treatment areas, and office spaces. Small improvements in these areas can significantly impact buyer perception.
The Bottom Line
The best way to sell your dental practice is to run it as if you're not planning to sell. Strong financials, consistent operations, and professional presentation create value that attracts quality buyers and commands premium prices.
Ready to explore what your practice could be worth? Let's talk about how to maximize your practice's value in today's market.
