You don’t need to have immediate plans to sell your dental practice to start maximizing its pre-sale value! If selling your practice is part of your plan in the next few years, now is the time to take steps to increase its pre-sale value. The time you invest now in working to increase your practice’s pre-sale value can pay off big time when the time to sell actually arises. Here are some ways you can work on increasing the pre-sale value of your dental practice.
Increasing the Pre-Sale Value of Your Dental Practice
To make your practice more attractive to potential buyers and to increase its value, you will want to start looking for ways to increase your revenue. Take a look at your books. Analyze your revenue and use this information to look for ways you can boost your practice’s cash flow. There are a number of ways you can do this. For instance, you may want to explore ways your practice can expand to widen its patient base. This could include expanding the services your practices offer. Some dental practices add on services such as sleep medicine treatments or provide Invisalign consultations and services.
As you look to boost your revenue, you should also look to ways you can cut back on your overhead expenses. Over the years, it may surprise you how many unnecessary overhead expenses can become routine for a dental practice. Look at your monthly expenses and make cuts where you can. Reducing overhead expenses will not only increase the value of your practice, but it is also likely to make your practice more attractive to potential buyers who want to be able to control how things are run in the practice and cutting costs will help them do just that.
Cutting back on your accounts receivable will also help boost your dental practice’s value. Having a high number of accounts receivables can be a major red flag to potential buyers. You will likely have to field questions about whether your practice has collection issues, lacks a consistent billing system, or lacks a strategy to retain patients. If your practice does struggle with accounts receivable, you may even want to consider outsourcing to a third party to handle such matters.
As you are looking to increase the value of your practice, you should also keep track of the building in which your practice is located. Office location is, after all, a valuable asset in a successful practice. Real estate tends to increase in value over time. If you own the property, you should consider whether you would want to rent the practice space or sell it along with the practice.
Dental Law Attorneys
If selling your dental practice is part of your five-year plan, now is the time to reach out to Mahan Dental Law. We can help you maximize the value of your practice and help you throughout the sales process. Contact us today.
