If you’ve ever pondered the question of how long it takes to sell a dental practice, you’re not alone. Dentists often think about this when planning their next steps or if they’re facing delays in selling their practice.
There is no concrete answer to the duration it takes to sell a dental practice. Some dental practices—owing to their prime locations—find buyers in a flash. In contrast, others might remain on the market for an extended period. When you decide to sell your dental practice, you’re embarking on a journey that may span months or even years.
The key thing to remember is that selling your dental practice isn’t just about “selling.” It’s a small part of a broader transition.
A quick internet search on the time it takes to sell your dental practice presents a vast range of opinions. Some sources mention dental practices selling within a month, while others state it might take up to five years. This discrepancy exists because the “sale” definition varies. Does it merely refer to advertising and finalizing a deal, or does it encompass every step since the transition?
Handling the transition
For those just starting to think about a transition and wondering how long it will take to sell your dental practice, planning years ahead is absolutely critical. If you’re in the early stages, consider the following timeline for transitioning:
- 1 to 5 years out – Start drafting a transition plan. You might want to make some upgrades to your practice, akin to renovating a house before selling.
- 12 to 18 months out – Start organizing essential paperwork that would be necessary for a sale or partnership.
- 12 months out – Start collaborating with a partner to facilitate the transition. This might involve marketing to sell your dental practice or onboarding new dentists.
- 3 to 4 months out – Inform your staff about the impending transition.
Rather than simply thinking about selling your dental practice, consider the entire transition. Ponder your next steps. Is it full retirement, partial retirement, or delving into teaching? Explore alternatives like partnerships and affiliations. These paths might be more straightforward than an outright sale and could serve as intermediate steps in your transition.
A graded transition can be an alternative, where after deciding to sell your dental practice, you remain associated in a reduced capacity, offering your expertise.
Key factors that influence the sale of a dental practice
Understanding the elements that impact the sale of your dental practice can be helpful whether you’re looking to sell or facing challenges in an ongoing sale:
- Location – Practices situated in bustling areas with high footfall are often more appealing to potential buyers. On the other hand, remote locations might face challenges in attracting interest.
- Annual revenue and profitability – Simply put, a practice with higher earnings is more enticing to buyers. Overhead costs can influence the pace of the sale, too.
- Financial documentation – The process will take longer if your financial documents aren’t readily available and accurate. It’s crucial to prepare and verify all financial details and projections you offer.
- Promotion strategy – Effectively promoting your practice is essential, and even experts can struggle with this aspect. Lackluster advertising or promotion in irrelevant places can result in diminished interest.
- Timeliness in appraisals and viewings –Procrastinating on appraisals can hinder the sale process. Ensure you’re flexible and prioritize these engagements to prevent delays.
Sell your dental practice faster with a medical broker.
When you sell your dental practice, you’re not just making a transaction. It’s a transition that requires expertise and an understanding of the industry’s nuances. A medical broker can help greatly in this regard.
A medical broker doesn’t just connect sellers and buyers; they offer insights, advice, and guidance to ensure that the valuation is accurate, the terms are favorable, and the process is efficient. Not using a broker can lead to potential misevaluations, missed opportunities, and prolonged selling periods, which can affect the overall profitability and experience of the sale.
If you’re contemplating how to effectively sell your dental practice and ensure a smooth transition, Strategic Medical Brokers is here to assist. Reach out to us at 888-970-1210, and let us guide you on this journey.