THE TOP TEN THINGS

You should be thinking about if you want to sell your dental practice in about 5 years

First of all, this is a good time to ask!  You still have time to get your financial picture in order, buy any equipment you decide on and get to use it for several years, and get things generally spruced up.   Remember, you usually need to provide 3 years’ corporate and personal tax returns (yes, complete copies of both) to a buyer’s lender and consultants, to sell your practice.  Now is the time to plan and get organized!

 

1.	Get your Tax Returns lookin’ good!  Concentrate on the “bottom line,” that is, you should be profitable. If you are running personal things through your business, such as inflating categories like office supplies, you might consider ceasing that practice for the three years before a sale to maximize your practice sale profits.
2.	Employee Wages should be an appropriate percentage of your collections, probably somewhere between 20 – 27% for general practices and much lower for most specialty practices.  Try to stabilize staff and pay each staff member an appropriate wage for their job position.
3.	Hygienists Salaries should be appropriate for each hygienist’s production.  Hygienists should usually produce about three to three and a half times their salary.  If they aren’t there, consider hiring a hygiene consultant to help.
4.	Systems should be standard, up-to-date, and utilized.  If not, consider hiring a practice management consultant to assist you.
5.	Generally, it is not a good idea to hire an Associate Dentist if you have not been using one or do not absolutely need one.  Remember, associates cannot be bound by covenants not to compete.
6.	Don’t worry particularly about getting the newest, latest, and best New Technology unless you really want it.  It might help your sale somewhat, but most practices sold do not have it.
7.	Do keep your General and Office Equipment relatively new, less than ten years old for dental equipment and less than five years old for office equipment.  If you need to buy equipment, buy it now so you can enjoy it for a while.
8.	Clean out all drawers, stacks, messes and piles.  Throw out all unnecessary and unused stuff.
9.	If you haven’t Computerized yet, now is the time to do it.  Many of the relatively inexpensive software programs seem almost as good as the very expensive: pick a standard, commonly used program and go for it.  If you are computerized, be sure you have relatively modern equipment and monitors (probably less than three years old).
10.	Get and keep your Reception Room decorated, clean, and very neat.  The first impression really counts.  Consider hiring a professional decorator, even if just for that room.