How can you sell your dental practice quickly? Well, every practice is different and unfortunately, there is no cut and dry timeline. Some transitions will sell as quickly as one month, and some can take years. It really depends on the health of your practice, the market, and the practice’s worth. If you don’t know how long it will take to sell or the steps to get started, don’t worry, you’re not alone!
At JPA Transitions, we work with many practice sellers and buyers who have the exact same concerns. This article highlights our transition timeline checklist as well as some factors that can help speed up the process.
Here’s our transition timeline checklist to help you navigate the transition process:
Want more resources for selling your practice? Click here to get free tools to prep for your transition.
Selling your dental practice? Here are 6 things you can do to keep the transition process on the fast track.
1. Compile Your Paperwork
If you want to keep the transition process moving along, put together your financial paperwork and make sure it’s turned in on time. When a buyer goes through due diligence, they may ask for documents such as; bank statements, # of active patients, # of new patients, staff compensation/benefits, and multiple years of tax returns, production reports and many more.
Having these documents prepared not only speeds up the selling process, but it shows the buyer that you are an organized individual, which makes the buyer feel more comfortable with the purchase.
2. Build a Transition Team Familiar with the Industry
When you want to sell your dental practice, it’s important to have a team that is well-versed in the dental industry. Ultimately, this makes the entire process run smoother. An experienced dental broker, CPA, lawyer and banker will help both parties avoid common setbacks and issues, and ensure that needs, concerns, and interests are better represented in a timely manner.
3. Stay in Contact with your Transition Team
Staying in communication with your Transition Team is critical to ensure that your transition moves forward quickly. Although it may seem easy or more convenient to reach out and communicate with the buyer on your own, it’s best to always communicate through your advisor first. This ensures that both parties are aligned, expectations are set appropriately and all information is accurately represented.
4. Be Open to Scheduling
You have to maintain a flexible schedule to speed up the process of selling a dental practice. The longer you push off your showings, the longer it will take to sell. When a buyer wants to see your practice, ensure that you are available after hours. Maintaining the confidentiality of your transition is extremely important. It may feel enticing to tell your office manager about the sale, but you can’t guarantee that this information won’t trickle down to your staff or patients. If your staff or patients find out, they may start looking for new jobs or dentists, which could lead to you losing value, or even, the sale.
If you aren’t available for showings, be prepared for a longer selling process. And remember… time kills all deals.
5. Don’t take a vacation… yet!
Often times, many doctors will decide to go on vacation before everything is completely finished. Don’t coast to the finish line by taking a vacation. This only stalls your timeline. At the same time, through reducing your work days during the transition process, you’re doing less work which can lead to decreased revenue. We highly suggest to not take a vacation until after the transition process is completely finished to avoid any setbacks and keep the process moving forward. Besides, when everything is finalized, you can truly turn that long awaited vacation into a celebration!
6. Meeting deadlines and goals
Dragging your feet in the process will only make for a longer transition. Meet your deadlines as quickly as possible because the more efficient that you are, the faster the transition will move forward. For most sellers, the demands for documents and answers to questions is heavier early in the process, as the process moves toward closing, more and more of the deadlines and requests will be addressed by your Transition Team.
Making Dental Practice Transitions Efficient
Overall, there are many moving parts when selling a dental practice, there’s lots of legal work, the banks loans can take some time, and remember, communication is key! This will help move the transition along quickly, and remember every practice is different, a large part of the transition process weighs on how flexible and efficient you can be in the process.
Don’t worry, we’ll prepare you for all of this! For all of our practice sellers, we help develop a thorough dental practice transition plan that works for your unique practice. Let us help you get started today.