If you’re thinking about selling your dental practice, whether you want to do it today or five years from now, you want to get the most money you can out of your hard work. We’ve provided some tips for increasing the value of your practice, some of which you can do now and some of which may take time. Either way, we’re here to help you have a successful sale.
If you put the proper time and resources into your marketing, you’ll see a huge payoff. Marketing gets your name out there and increases brand recognition, which is crucial to building a customer base. This is why potential buyers look for practices that have good marketing strategies. The more time you have for marketing the better, you’ll want to have records that show the success of your campaigns when you sell your practice.
Any upgrades you make, whether it’s the equipment or the building itself, will be reflected in your dental practice appraisal. If you haven’t upgraded your equipment in the past few years, it’s a worthy investment. Most potential buyers don’t want to make this investment themselves, and any appraiser will value your practice lower because of it.
You should also look into upgrading the building itself. Whether it’s the furniture, artwork, or a fresh coat of paint, this is a small investment you can make to ensure a higher valuation. Giving your practice a more modern look will be more attractive to buyers as well.
3. Reduce Costs
Buyers, banks, dental brokers, and appraisers will all be looking at your practice’s expenses. Anything you can do to reduce these will benefit your sale. It could be something as simple as making your building more energy efficient so you can save on utility bills. You could even try renegotiating contracts with distributors, or outsourcing lab work. Anything you can do will help because reducing costs also means increasing revenue. According to InvesterJunkie, a practice that earns $100,000 per year will sell for about $200,000-$300,000.
These are just a few tips for increasing the value of your dental practice to get you started. If you’re seriously considering selling your practice, look into dental practice brokers today for more tips and guidance.