Is your dental practice ready for your retirement? Even if you are just starting to consider this option – it is wise to start your succession planning now.
All dental practice owners will eventually be faced with succession planning. It makes good sense to develop a plan now instead of waiting until it is too late when things will likely go wrong. With some help, you can devise a thorough plan that meets your needs and those of your family members.
So, what are your options?
There are four basic choices for a dental practice succession plan:
- Sell your practice to a corporate group (DSO)
- Sell your practice to a dental professional in your family
- Sell your practice to an unrelated party or liquidate your assets
Each of these options come with their own complex issues, and they should be carefully analyzed before you determine your best course of action.
What matters most
You probably don’t have a sense of urgency to start your succession plan, but that doesn’t mean that you should avoid starting the process altogether. We understand that the thought of facing difficult tax and legal obligations doesn’t sound like much fun either. However, succession planning does not have to be a complicated process, especially if you know where to start and what questions to ask.
To achieve your desired exit plan, you should prioritize the succession planning process well in advance of leaving your practice. Ask yourself:
- What will I do after I leave my practice?
- How much money do I need from my practice to retire?
- What impact will my retirement have on my family?
- Will the practice will survive without me?
Each person and situation is both different and complex – and there no one-size-fits-all answer that will guarantee your wishes. If you plan far enough in advance though, you will have the time to think about (and answer) these questions to implement your ideal exit strategy.
Dental practice owners who fully understand their succession options, set a course of action to execute the plan and seek assistance to ensure the plan is carried through as desired have the best chance of seeing optimal results. Are you ready? Contact us to find out how our practice transition consultants can help you grow, manage and exit your dental practice.