Have you been thinking about selling your business practice? It’s a big decision. If your thoughts have been drifting to this decision more and more, it may very well be time to start preparations. Selling a dental practice after all will involve a rather extensive process to help ensure that it is the best time to sell, that your dental practice is properly valued, and that you are maximizing the value of the practice to make it an attractive options to buyers. Here, we want to walk you through some of the steps you are going to want to take in preparation for the sale of your dental practice.
Preparing Your Dental Practice for Sale
First thing is first. Before you take any steps to actually sell your dental practice, you will want to meet with both your financial advisor and your accountant. Make sure that it is in your best interest, financially speaking, to sell your dental practice at this time. The last thing you want to do is sell your practice and find out that you couldn’t actually afford to sell it when you did. Financial markets ebb and flow over time. Selling your business in the right market can be critical to maximizing its value. Consulting with your financial advisor can help ensure that now is a good time to sell or maybe waiting a few years may be in your best interests.
Your accountant can assist in going over the tax consequences of the sale of your business practice. There will be different tax consequences depending on the type of legal entity you formed for your dental practice. Each entity may have its own unique tax issues that you will want professional assistance navigating. Furthermore, an accountant will be able to counsel you on how much of the proceeds from the sale of your practice you will actually be able to retain.
You will also want to get a comprehensive valuation of your practice to help determine whether now is the right time to sell. Get a certified valuation that accounts for all key aspects of your dental practice. This will mean a valuation that accounts for both the practice’s physical attributes as well as its intangible assets. Physical attributes will include things like equipment and office space. Intangible assets will include things such as goodwill and reputation within the community it serves.
If your facility could use some sprucing up, it may be a good idea to tackle some cosmetic enhancements prior to putting your practice on the market for sale. This doesn’t mean spending large sums of money to revamp your dental practice office, but there are certain improvements that can cost little but have a huge impact on first impressions. A fresh coat of paint and some new landscaping, for instance, go a long way to freshening up a practice’s aesthetics and curb appeal.
Dental Law Attorneys
If you are thinking about selling your dental practice, talk to the team at Mahan Dental Law. We can provide you with the tools you need to prepare your practice for sale as well as drafting sound legal documents such as employment contracts and service warranties you will likely need during the sale process. Contact us today.