Are you ready to sell your dental practice? Great! Dental transition experts, Doug Sellan and Adam Goldsmith share with you tips to get started. In this video, they will discuss what are the first things you should do as you get ready to sell.
Doug Sellan: Hi, I’m Doug Sellan and with me today is my colleague Adam Goldsmith, and we are with PMA Practice Transitions. PMA specializes in helping dentists transition out of practice ownership. Today, we’re going to talk a little bit about practice management tips and Adam why don’t you kick us off with a couple tips there.
Adam Goldsmith: Absolutely. As a dentist considers relocating, retirement, however they’re wanting to sell their practice, usually typically three to five years out is kind of the benchmark we like to be in front of dentists to kind of help provide practice management tips to help them maximize the value. One of the main things we always recommend first and foremost is get the practice appraised. That’s a great start to really take a look at the high-level expense categories, see as you manage the practice in the next three to five years where can you optimize, either lower your expenses, maybe raise incomes, very high-level look at the whole offer ratios of the practice. And we can kind of compare those numbers to some of the national averages, where practices should be trending, what lab should be 6, 7% of gross collections, things like that, that we have a lot of data on, and we can look at your numbers and determine maybe you’re overstaffed, do you have a couple employees who float around and aren’t really productive? Can you optimize your lease somehow? We provide some very light consulting when we dig into those numbers. That would be the first step I would take if I was looking at selling my practice in the next two, couple, few years.
Doug Sellan: Yeah, you’re absolutely correct. So it’s not just a practice management test, but it’s also practice readiness. It’s getting your practice ready for that transition, so it is focusing on the expenses that you may haven’t taken a look at in a long time. And not only is it the expenses of running the business but the income that comes into the practice. So maybe it’s some of the dental insurance plans that you’re participating in today. When was the last time you adjusted your fee schedule? When was the last time you negotiated your current reimbursement rates and maybe it’s time to eliminate some of those plans. Keeping in mind that the cleaner your business is when it comes time to sell your practice, it’s going to go smoother and quicker, plus you may even get a much higher value by adjusting those numbers today and getting yourself prepared for that next phase, whether it be three to five years or five to 10, or whenever it may be. I think we add the knowledge, skill, and expertise to help you get the better value.
Adam Goldsmith: And that’s exactly it, Doug, it’s how can we help enhance your value when it’s time to sell? We’re not going to do it artificially, has to be hard and concrete numbers and figures and facts, but I think that’s a great point, looking at those fee schedules, looking at those insurance reimbursements. You may not have to do any more work to achieve a more profitable practice, so that’s kind of where we help dentists really plan and figure out the best exit strategy and maximize the value when it’s time.
Doug Sellan: Right. So if you like this information, please like us on Facebook and YouTube and all those great places and look forward to more information from us in other videos. Thank you.