Transitions Newsletter - August 2023

TRANSITIONS

EXPERIENCE, INFORMATION, CONSULTANTS YOU CAN TRUST

Navigating Practice Transitions: Key Considerations for Dentists

Establishing a realistic practice transition plan is crucial not only for dentists nearing retirement but also for those facing various situations. Learn the key considerations and what is needed to effectively plan your practice transition.

their balance sheet. Assess your financial situation thoroughly to manage the demands of owning and operating multiple practices successfully, especially if bank financing is required for expansion plans.

Practice Valuation

Understand the current value of your dental practice, which is fundamental for any transition planning. Prepare a practice valuation for estate planning purposes as well, in case of unexpected events. Create an Emergency Exit Strategy and a Letter of Instruction with key advisor information to facilitate an unexpected sale.

management software and electronic patient records. Assess your clinical technology as well, such as digital radiography, intra-oral cameras, patient education software, CAD-CAM, and laser technology. Align your decision to invest in new technology with your expected practice duration.

Preparing for a practice transition is a vital endeavor at any stage of your dental career. Whether you are considering retirement or other transition strategies, careful financial planning and practice evaluation are essential for success. Start planning early, define your goals clearly, and thoroughly explore your options. Remember, time can be your greatest ally or enemy, so the sooner you begin your transition plan, the better the outcome.

Financial Planning

Evaluate Retirement Goals and Financial Readiness

Ensure a secure retirement by evaluating your retirement goals and financial readiness. Seek the guidance of a feebased financial planner to assess your current assets, personal net worth, and set realistic financial targets. Determine the feasibility of your proposed practice sale timetable and meet your financial goals within the desired timeframe.

Financial Strength for Practice Expansion

Dentists considering expanding their individual practice to multiple locations need to evaluate the financial strength of

Practice Profitability

Building a profitable practice before retirement not only benefits you but also increases the value of your business significantly. Focus on increasing both gross receipts and net income especially leading up to the sale of your practice. Consider hiring professional management consultants to provide insights and assistance in growing your practice and enhancing both top and bottom lines.

Adopting Technological Advancements

Staying up to date with technology is crucial for maintaining a competitive edge in the dental profession. Evaluate your position on the technology pathway and consider implementing modern dental

Optimal Time to Sell Your Dental Practice: A Comprehensive Guide

If you ask five dentists when the best time to sell your dental practice is, you’ll likely receive five different answers. Common responses include intuitive retirement, never selling due to a deep love for dentistry, financial security, selling when there’s no immediate need, or when the demands of being a dentist become overwhelming. While these perspectives hold some truth, the decision to sell your practice requires a comprehensive evaluation and a carefully planned exit strategy. Selling a dental practice should not be treated as a hasty sprint but rather the culmination of a successful career.

or three years. Therefore, a short-term improvement in one or two areas may not compensate for an overall decline in economic indicators.

but with the right assistance, you can navigate the process successfully.

In conclusion, determining the best time to sell your dental practice requires careful evaluation. A thriving practice, supported by strong performance indicators, enhances the likelihood of a successful sale. By creating a comprehensive transition plan, focusing on areas of improvement, and seeking professional guidance, you can maximize the value of your practice. Remember to be patient throughout the process and seek support when needed. Selling your dental practice should be the culmination of a long and fruitful career.

Maximizing the Value of Your Dental Practice

The Optimal Time to Sell: A Thriving Practice

In an ideal scenario, the best time to sell your dental practice is when it is thriving and performing exceptionally well. Selling at the peak of your practice’s success allows you to obtain the highest possible price for your efforts. However, it’s important to note that a busy office and a high volume of patients do not always equate to the most profitable dental practice. Key performance indicators (KPIs) serve as important benchmarks for a successful practice. These include clinical production on a daily, weekly, and monthly basis, average production per patient, accounts receivable, collections, new patients, patient retention, patient drop-off rate, overhead, and profitability. Prospective buyers will thoroughly review these KPIs for the previous two

To maximize the value of your dental practice before selling, it is crucial to have a well-defined transition plan in place and adhere to it. Seek the expertise of your accountant and an unbiased, experienced professional to assess the strengths and weaknesses of your practice. Address areas for improvement and create an action plan to enhance all key performance indicators. Focus on reviewing expenses and reducing overhead, upgrading office equipment and technology, increasing marketing efforts to attract new patients, considering an office makeover if necessary, and conducting an honest staff appraisal to improve staff performance.

Be Patient: Selling Takes Time

Selling a dental practice is not an overnight process; it takes time and patience. Dentists often operate under significant stress but succumbing to desperation and rushing the sale can deter potential buyers. If you find yourself longing for retirement and feeling overwhelmed, remember that buyers can sense desperation. Seek professional help to get your office in top shape, especially if you’re running low on energy. Finishing your career strong and seeking support when needed are wise decisions. Retirement or relocation can be daunting,

WHAT OUR CLIENTS ARE SAYING:

I retained Christy Conway with Henry Schein Practice Transitions to assist me in selling my 41-year-old dental practice. I felt very comfortable and confident working with Christy. She brought many potential buyers in to look at my practice. We had many obstacles to overcome and Christy helped and guided me through most of them. I would highly recommend Christy Conway as your Practice Broker. Randall W.

Smith, D.D.S.– Seller Oceanside, CA

The idea of selling your practice of over 30 years immediately sparks the entire bandwidth of emotions. When Josh Griebahn was invited to evaluate the practice and share his strategy for the transition, he was able to bring focus, calm, and hope into this daunting task. He guided both parties through this arduous process in a seamless manner, anticipating and attending to areas of need all the way to the finish line. We are grateful for his leadership, guidance, knowledge, and positive energy. Thank you Josh for making this life changing and memorable event to become a dream come true.

Joseph Michael Adame, D.D.S.– Seller McAllen, TX

Greg Auerbach is simply the best at what he does, he made everything simple and easy.

Henrique Silva, D.D.S. – Buyer Trenton, FL

DIVE IN & LEARN with On-Demand Content!

Now Available:

• Is Your Group Ready for the Next Step?

• What Is a DSO and Do I Need to Establish One?

• Selling Your Practice in 2023: Are You Ready?

Webinars from Dental Practice Transitions are designed to provide tips, tools, and help you capitalize on the investments you’ve made throughout your dental career. Hear from a nationally recognized speaker, author, and consultant who has been advising dentists for more than 30 years, Senior Director of Transition Services, Thomas Snyder, DMD, MBA, for an update on practice values, dental market trends, considerations for successfully transitioning your practice, and more.

Randy Smith and Christy Conway

READ MORE CLIENT TESTIMONIALS

CONGRATULATIONS

CENTRAL

Gregory L. Kennedy, D.M.D. sold to James M. Sitz, D.D.S., P.C.

Grand Bay AL

Steven Hood, D.M.D. sold to Rocky Mountain Dental Arts, P.C. Loveland CO

James C. Peurach, D.D.S. sold to Cedar Springs Dental, PLLC Hastings MI

Bruce A. Sexton, D.D.S. sold to Paul Ingles, D.M.D., PLLC Wayland MI

Kevin F. Postol, D.D.S. sold to BYU Ballwin, LLC & Ballwin Family Smiles, PLLC Ballwin MO

Gaylina Reachi (Albuquerque), D.D.S. sold to Bobby Harden, BA

Susanne Parrish, D.D.S. sold to Dr. Sandhya Menon, D.M.D., LLC

Albuquerque NM

Chagrin Falls OH

Kathleen Zingale, D.D.S. sold to Hayat A. Ali, D.D.S., Inc. Elyria OH

Ronald E. Bell, D.D.S., M.A.G.D. sold to Selmer Smiles, LLC

Selmer TN

Thaer Al Azzawi (Olive Dental), D.M.D. sold to Advantage Dental Oral Health Center of Texas, P.C. Houston TX

Reagan A. Bonner, D.D.S. sold to Dumas Family Dental Care, PLLC

Calvin Mike Asay, D.D.S. sold to Nathaniel Tippit, D.D.S.

EAST

Yen-Cheng Lai, D.M.D. sold to Sreenivasulu Panguluri, D.M.D.

Richard Godfrey, D.D.S. sold to Eugene Olsen, D.D.S.

James Clifford Rigby, D.M.D. sold to LoPresti Dental Aesthetics, LLC

Jonathan M. Richter, D.D.S. sold to One Smile Dental Care, P.C.

Elizabeth M. O’Connor-Ceravolo, D.D.S. sold to Michael J. Darling, D.M.D.

Gregory D. Letica, D.M.D. sold to Bryce Ledner, D.D.S., PPLC

Richard B. Salter, D.M.D. sold to Gee & Gee, LLC

FLORIDA

Stephen Perez, D.D.S. sold to Nadia Pokrovskaya, D.M.D.

Kenneth A. Jandik, D.D.S., M.S. sold to Rene Piedra, D.M.D.

Jefferson Pecora, D.M.D. sold to Valorie Houk, D.M.D.

Michael T. Gmitruk, D.D.S. sold to Mario Romero, D.D.S.

Kyle Stuart, D.M.D. sold to Henrique Silva, D.D.S.

WEST

El Dorado Hills General Dentistry Practice

La Jolla General Dentistry Practice

Modesto General Dentistry Practice

Rancho Santa Margarita General Dentistry Practice

Sacramento Orthodontic Dentistry Practice

San Clemente General Dentistry Practice

Clearwater FL

Fort Myers FL

Palm Bay FL

Sarasota FL

Trenton FL

PRACTICES FOR SALE

HOW

PRACTICES FOR SALE

SPECIALITY

Greater Orlando Pedi: 6 Chair PPO/FFS Digital X-ray $1.0M

NW Central Florida Pedi: 6 Ops Medicaid/FFS Dig Pan RE $845K

Greater Orlando Perio Partner: 10 Ops FFS CT Laser RE avail$1.4M

FLORIDA NORTHEAST

Palm Coast 3 Ops Great loc. Ready for start-up Sold

FLORIDA NORTHWEST / PANHANDLE

North Florida 3+8 Ops FFS/PPO Dentrix Digital Laser $309K

Panhandle/NW Florida 11 Ops FFS/PPO Cerec iTero Ceph/Pan RE $2.2M

FLORIDA SOUTHEAST (Contact Stuart Auerbach)

Ft. Pierce 5 Ops FFS/PPO Ask $ 285K Bldg for Sale $380K

MULTI-DISCIPLINARY

North Miami 2 GP offices + 2 Ortho offices $9.1M

SPECIALITY

Margate Pedo/Ortho: 4 ops equipped +6

FLORIDA SOUTHEAST (Contact Linda Zalkin)

Vero Beach 3+1 Ops FFS/PPO Room to Grow $400K

FLORIDA SOUTHWEST

SPECIALITY

Fort Myers Perio: 6 Ops PPO/Indemnity Digi X-ray Sold

PRACTICES FOR SALE

NEW MEXICO

PRACTICES FOR SALE