Achieving your practice’s full potential – Rebecca Bird Acquisitions & Tender Coordinator Rodericks DentalFeatured Products Promotional Features
Posted by: The Probe 2nd August 2018
Not quite ready to hand over the reigns yet? Feel the practice has space to grow before reaching its full potential for final valuation? Need to get things in line before pursuing the transaction? You may have an end point in mind for when you’d like to have handed over ownership of the business, but before that there is a lot of work that can be done to ensure that when the final papers are signed, comfort can be taken in knowing that everything was done to ensure as smooth and profitable sale.
Years before the sale, there are plans that can be put in place to make the handover seamless. This early stage planning allows time and resource to be dedicated to optimising the practice and ensuring it is best positioned for a sale. From equipment used to the building itself, operational protocols and the dental team, there are many elements that need to be considered and developed to make the practice as attractive as possible to prospective buyers.
Its probably the most laborious of all tasks to be undertaken during a practice sale, but being prepared for the due diligence stage as early as possible will make the final transition period much less stressful. It is an inevitable part of the process and can’t be avoided, so proactive steps should be taken when there is time to ensure that all matters are organised and transparent. This phase of the sale always takes longer than anticipated and any issues or missing data can delay proceedings considerably. Anticipating what will be required well in advance can aid a quicker sale when the time comes.
The actual premise of the dental practice is a key consideration during the selling process. Establishing the circumstances of the practice ownership and status early on is recommended. Whether it is freehold or leasehold is the main concern, and if it is freehold, is it owned by a single person or multiple? Further still, if it is freehold, thought should be given as to whether this is part of the sale transaction or if the space will be leased to the new owner for on-going income. However, if it is leasehold, the appropriate paperwork should be gathered and reviewed ready for the due diligence stage.
This can be a very sensitive part of any dental practice sale. Every team member will be affected in different ways and may react unexpectedly to the news. The timing is crucial; too soon and it can cause prolonged stress and anxiety, too late and people can feel rushed and let down. As well as handling feelings and emotions, bureaucratic work needs to be addressed for all members of staff too. Training records, employment contracts and any other associated paperwork should be organised ready for the transaction.
When preparing for a sale – no matter how far in advance – this is a perfect time to take stock of the equipment, devices and materials employed in the practice. Now is the time for “out with the old” and “in with the new”. Old pieces of equipment lying around the practice can portray negatively to prospective purchasers and, more importantly, at valuation. Conversely, investment in new equipment and innovative solutions can enhance the value of the business significantly. This doesn’t mean going out and spending huge quantities of money, however, it does mean replacing any out-dated and damaged equipment or technologies.
Procedures and policies
One of the many reasons as to why practice owners decide to sell is the bureaucracy associated with running a dental business these days. The constantly changing regulations, from a clinical and business aspect, add pressure to any principal and take up a lot of their time. The policies and procedures associated with this will be required at the due diligence stage and so keeping up-to-date and having all the necessary paperwork prearranged can minimise any last minute urgencies.
Who to sell to?
Finding the right buyer can make all the difference to the sale of a practice, affecting both the actual transaction and the on-going success of the business. Rodericks Dental understands this, which is why it remains committed to excellent patient care and career development opportunities for all members of the team. As a group run by dentists for dentists, it can ensure a quick, seamless transition, for the benefit of the patients, the dental team and the departing owner. Completion is possible in as little as 12 weeks, the team will visit outside of normal working hours and they can contribute towards legal costs when a recommended dental representative is used.
The selling process does not need to be stressful and demoralising. With comprehensive preparation in a timely manner, the owner can depart the business knowing that they achieved the best possible outcome for all involved.
For more information, please visit www.sellyourdentalpractice.net
Please contact Rebecca Bird at firstname.lastname@example.org on 01604 602491 (option 5)