Note: How long does it take to sell a dental practice?

What is Dental Practice?

Dental practice means a specialized establishment where dental professionals, Such as dentists provide facilities related to dental health.

Dental health includes prevention, diagnosis and treatment of various health problems and diseases. Dentist conduct different practices such as regular checkups, dental X-rays, dental surgeries etc.

Importance of selling Dental Practices

Selling dental practices is of great importance for a dentist who is thinking retire or relocating. Selling dental practices provide financial security and post retirement security to the dentist. Some of the important reasons of selling dental practices are given below.

• Retirement planning and financial security.
• Selling dental practices provides new opportunities to the dentists.
• It provides growth opportunity to the dentist by selling their practices.
• It will create legacy and professional reputation of the dentist.
• Selling of dental practices has great impact on community, it provides accessibility of oral care in that area.

Preparing to sell dental practice

Preparing to sell a dental practice is a very complex procedure, It demands planning, evaluation, and the power to make decisions. The key points that are involved to sell dental practice are discussed below.

Financial health assessment

The first and the most important step is assessment of financial health. It includes complete assessment of Revenue stream, profitability and cash flow.

Evaluation of demand and market

Before selling dental practices in a specific area, the market condition should be checked. Some of the factors, Market condition, population growth and competition in that area should be evaluated.

Marketing and advertisement

Marketing and advertisement of your new business play vital role in its success. Effective marketing is very important to attract high quality buyers. Nowadays online marketing is one of the most powerful way to introduce your business.

Steps involved in selling dental practices

Selling dental practices involve several key steps, that can multiply your sales. Some of the key steps are listed below.

1. The first step is to find a dental advisor, which has excellent reputation and can boost your sales.
2. Create different packages that can attract different categories of people.
3. Marketing and advertisement is the key to get success in every business.
4. You should know about the negotiating terms and conditions of the sales.
5. To verify the accuracy of the information provided during the sale, both seller and buyer should perform due diligence.

Legal and Regulatory Consideration

Legal and regulatory considerations are very important for selling dental practices. Ensuring regular laws and considerations are very important for lawful and smooth transactions.

Transferring Permits and Licenses

To perform dental practices, dental licenses and permits are required. It is necessary to transfer it to the new owner.

Healthcare regulation

Dental practices must stick could the wide range of healthcare regulations. These includes healthcare of the patient, Privacy and dental record keeping.

Handling patient record

It is very important to handle patient records and confidentiality. The seller must ensure that the patient records are kept Carefully and securely transferred to the new owner.

Reviewing contracts

It is very important to review all the contracts that are with vendors, supplies and service providers. Ensure that all the contracts are securely transferred to the new owner or are completely terminated.

Financial and tax implication

In Sale of dental practice financial and tax implication plays an important role. Some of the key considerations related to financial and tax implications are discussed below.

Capital gains tax

Seller may be subjected to capital gains tax. the capital gains tax is calculated by finding the difference between Adjusted cost and the selling price of the practice.

Depreciation recapture

The depreciation recapture may be subjected to the ordinary tax rate, If the seller has claimed depreciation deduction on the assets within the dental practice.

Seller financing

The financing agreement can have financial implications, if the select provides financing to the buyer.

State and local taxes

the seller should be aware of sales and local taxes. The tax rates may vary as depending upon different factors. It is very important to consult with a tax professionals, who know the local tax laws.

Due Diligence for buyers

Conducting through the due diligence, it is very important for the buyers. Both buyer and the seller should contact experienced professionals related to tax field, this would help to remove any kind of confusion.

Factors Affecting the Timeframe of selling Dental Practices

The timeframe of selling dental practices are of great importance, as it depends on various factors. Some of the important key factors are discussed below.

Condition of market and demand

Market condition and demand has great effect on the dental practice. The market with higher buyers value and lower seller value is always good for a new seller.

Location and size of practice

The size and location of the dental practice has great impact on timeframe. Practice in the high population area with lower seller competition is always profitable and time saving for new sellers.

Complexity of the sales and negotiation process

Complexity of the sales and negotiation process also play very important role in the timeframe. If there are multiple investors or stake holder then it will impact timeframe.

Conclusion

It is concluded, selling dental practice is very complex, it includes various factors like

• Careful planning.
• Consideration of various factors.
• Adherence to legal and regulatory requirements.

From preparing practice to sale, Setting a fair price, negotiating and at the final making transaction, it is important to follow various important steps that are discussed above. A well prepared sale not only ensure the financial security but it also ensures the retirement security. It upholds the seller’s professional legacy and reputation within The dental community.

While time frame of selling dental practices depends on the market condition, readiness of the parties involved and the extra accuracy of the seller.

Selling dental practices is a very transformative journey, Careful attention on each and every detail And focus on the long term Well-being of the practice will bring you many rewards, Leaving a long lasting legacy in the Oral healthcare field.