When am I ready to sell? This is a very good question and one that requires deep thought. It should involve conversations with your family, colleagues, business partners, financial planners, attorney, and accountant. The choice to sell can be harder than the decision to go into business, as it usually means “Retirement.” This word has many positive rewards, however, it can also represent many negative feelings such as: Is this the end of my career? What will I do with my time? Can I AFFORD to retire and SELL my practice?
We have spoken to many dentists and doctors that have all asked themselves these kinds of questions. The best answer we have for each one is, “Let’s talk about it and see where you stand in regards to these thoughts and find out the real value of your practice.”
What do I need to have ready? Once you have made the decision to sell your practice, you will need to put together financial records, practice management reports, updated inventory records, and other relevant documents to help us properly review and value your business. This also includes complete corporate tax returns for the last 3 years in business, Year to date financials for the current year, management reports showing total productions and collections for that same period, and an inventory report of all business assets (including all equipment and supplies). If real estate is included, we will need the following: property taxes, insurance fees, Condo/HOA fees (if any), past surveys and appraisals, and anything else that may assist in the valuation of the property. This is separate from the business analysis.
Also be prepared to have someone sit with your office manager or accountant to review your financials. This is something that many would like to avoid, however, it is critical in the overall business valuation.
Keep in mind, if you’re thinking of slowing down in order to WIND DOWN 1 to 3 years before retiring, this could potentially cost you thousands of dollars as it could LOWER the value of your practice. The best time to contact us is 1 to 3 years before you’re thinking of selling, to make sure all major aspects of the sale are reviewed and planned for in order to achieve the highest possible value for your practice