Time To Assess ?

Many of us spend a significant amount of our working lives building our business and it can often be our most important asset. The idea of one day realising the value of our business very often plays a major role in planning for the future.

Most of us will have a good idea of the value of our family home, either by having it valued now and again or simply keeping an eye on the local property market. However, do you have an accurate current view of how much your dental practice is worth? The traditional ways of valuing a dental practice have changed radically in the past few years and because the market is very active right now practices are selling at a premium and the options open to you to access the equity you have in your practice are greater today than at any other time in history. These options include:-

Transitioning to an associate

This is still a very popular way to sell out of a practice over time and hundreds of practices change ownership this way every year. However, a great number of these transactions are concluded at significantly below market value, so having an accurate value and knowing all the other options open to you is very helpful when considering selling to a colleague.

Putting the practice on the open market

Just like selling a house, exposing the opportunity for someone to acquire your practice to as many potential buyers is a great way of achieving the best price. However, this can come with risks to the business and needs to be handled in a delicate way to avoid the loss of any goodwill in the process.

Selling to a ‘New Corporate’

There are several new corporate groups now acquiring practices in Australia. These new groups often have interesting business models that can add additional value during the sale process. This includes share options, increased purchased prices, and future bonuses and more. Selling to a ‘new corporate’ can have some risk attached to it, but can also provide a great rate of return on your asset and sometimes interesting career opportunities. Like with your other options, it is worth understanding what is available and if it is suitable for you.

Selling to a ‘Old Corporate’

Corporate dentistry is nothing new to Australia and selling to one of the well-established groups is often overlooked as an option. All the well-established groups are all still expanding and still acquiring, but because they don’t publicise this fact as much as the newer groups who are trying to get established many in the profession tend to forget about them. They can be a good option in certain circumstances, they are low risk and quite often will pay more than people think they will.

Complimentary Valuation and Consultation

I have helped hundreds of practice owners over the years to realise the maximum value from their dental assets and also find the correct option for their personal and working lives. Many of these transactions started with meetings many years before any final decision to sell some or all of a dental practice was made. Knowing all your options, knowing the current value and planning well in advance of a sale is prudent and creates better outcomes. If you would like to know the current value of your practice I would be delighted to arrange a private and totally confidential meeting with you to discuss the points raised in this e-mail and a great deal more. This is totally without any cost to you or obligation and simply my way of introducing myself.

If you would like to arrange a meeting or simply have a question or two about the current state of the marketplace, simply e-mail info@e-dental.com.au or call Iain on 0437 739 448