Selling a dental practice isn’t what used to be. In fact, Blatchford Transitions has seen quality dental practices back on the selling block, and because there are new lenders in the industry, more local and regional banks are making money available on a regular basis with demand outpacing supply in the future.
According to Blatchford Transitions, only five percent of dentists will be able to retire comfortably at age 65. Whether you want to retire in ten years or in six months, what happens today is what matters. With the right dental practice transition, you can save money while improving your quality of life. When you plan a dental practice transition now, you are planning your future.
There are several choices a dentist can make as retirement approaches. One of those is to sell half of your practice while continuing to work. However, in order for this to work, both parties must be aware of what it takes to make it a win, win situation.
Why Sell Half a Practice?
Blatchford Transitions explains that there are several reasons to sell half a dental practice. Perhaps the dental practice needs another dentist because of growth or maybe the senior doctor will be retiring soon, but cannot leave the practice because additional capital is needed to support both owners. You may be asking yourself how this could possibly work.
Advantages and Disadvantages
Selling half of your dental practice will give the seller extra retirement capital, while the new partner has the opportunity for a new beginning.
For the seller, the broker has probably said, “You can sell half your practice, continue working, and have about the same net.” If this practice has a large net and the selling doctor loves practicing, offering to sell half is a good strategy.
Let’s do the math for most practices. This has been a single Doctor practice with a nice net for one person. No patients have been turned away because we couldn’t find the time to treat. Where will the net for two emerge? How will we sell half the practice without cutting the present net in half?
What is the expectation of the new partner? Which half of the practice did she purchase? Will this be half the new patients? Half the recare patients? Which half?
Unfortunately, most of the dentists that Blatchford Transitions has worked with have never defined a proper exiting strategy.
Some of the Problems that Can Occur when Selling Half a Dental Practice
After spending most of your working life building your dental practice, will you really be able to work for someone else? Whom will your team turn to if a problem should occur? Whom will your patients want to schedule an appointment with?
The dentist will pay a lot of cash for dental practice ownership expecting to make changes, manage, do the marketing, and be the boss. The presence of the seller makes the transition power difficult to the newcomer. Relegating the seller into the role of associate, does happen, but not without difficulty. Blatchford Transitions can help you with an arrangement that will keep you at the helm of the practice. This will allow you to retire gracefully once the new owner has taken over completely.
If you are considering selling your dental practice, call or click and schedule a no obligation dental transitions consultation with the team from Blatchford Transitions.
Blatchford Transitions has more than 35 years of dental practice transitions experience and can help you become more profitable. Call for a consultation today.