Are you getting to that point in your career where you see retirement as something that’s probably only 5-7 years away? You’ve done all your planning and your retirement accounts are in great shape, but what about your practice? Selling a practice is, in many ways, similar to selling a home. You do need to stage it properly, but you don’t want to waste money on items that don’t help, and may even hurt the sale. Let’s look at some things you might, and might not, want to do:
• If you’re still using paper charting, there is no requirement at this time that you convert to electronic records. There are however many incentives for you to do so. First, if you’re a Medicaid/Medicare provider, there are financial incentives available if you switch, and your payments will slowly be downgraded if you don’t. The other incentive is the knowledge that, at some point, Electronic Medical Records will be required. Paper charts will give any purchasing doctor pause as he/she knows the price of conversion. While the price is high, the earnings will be too…..you can ask much more for a practice that’s already converted and you’ll have a much easier time proving to a purchasing doctor that your production and collections are exactly what you say they are. Paper recording is notorious for being altered while computer reports are dated and are very difficult to alter.
• If you already have an electronic records system, should you update to a more user friendly software with all the new bells and whistles? Probably not. Most doctors have their own preferences in software and an upgrade will not only not add value, but could decrease it if they really dislike the program in place. The same goes for computer hardware and servers….if it’s all working, leave it alone.
• If your office is looking a bit shabby, new paint and wallpaper will not only make the next few years of practice more pleasant, but will also keep patients coming in and increase the eye-appeal of the practice to a purchasing doctor. Sit in your waiting room and operatories on the next non-patient day and look at them as if it were your first time seeing them. Stains on walls and carpets are signs that you don’t care about the practice….. and if you don’t, no one else will.
• As you’re making these cosmetic changes, should you do a full remodel of restrooms, staff lounge, etc.? In general, as long as paint and carpeting make the office presentable again, leave the major remodel to the new doctor. He/she probably has a very definite picture of their practice in mind, and you may well be throwing away money if you go in another direction.
• Be sure your staff isn’t outdated. This has absolutely nothing to do with age and everything to do with attitude. Do you have staff members who can be flexible and roll with new ideas, or are they constantly resistant to every change? Staff members who are overly rigid, will make it very clear to any potential buyer that they’re just not welcome. This may not stop a sale, but it will give a buying doctor pause as to whether the asking price is worth the aggravation. Now is the time to hire and train staff who are forward thinking and ready for whatever comes their way in dentistry. Get them trained and ready to present a great face to the practice.
• Last, but certainly not least, don’t slack on marketing! If you haven’t been marketing and the practice has been declining, get someone on board to get you moving again. If you’re tempted to let marketing slide, remember your practice is valued on what’s been happening in the last 3 years. A practice that’s been declining will not fetch top dollar.
• When you start thinking about all of the above, it’s a great time to bring in a good consultant. We can help with all the little details that will get you the best possible price when you’re ready to leave dentistry and start playing golf full time. Call us today to discuss our programs for exiting practitioners.
