Here’s our UDBA quick guide on key practice features that impact the speed of the sale.
Features of practices that are harder to sell:
- Ops: 3 or less ops
- Collections: $400k or less
- Profit: Real profit is less than $120k
- Location: Practice is more rural
- Equipment: Older equipment – 20 to 30 years old, conv x-ray
- Real Estate: Office space is rented
- Referrals: Practice does not refer out many procedures
- Hygiene: 15% or less of total collections
Features or practices that are easier to sell:
- Ops: 5 or more ops
- Collections: $750k or better
- Profit: Real profit is $200k or better
- Location: Practice is more urban
- Equipment: Newer equipment – 10 years old or less – digital, paperless
- Real Estate: Building is owned by the dentist and available for purchase
- Referrals: Practice refers out all or most endo, extractions and perio
- Hygiene: 25% or more of total collections
Certain features, like location, are harder to change. But consider:
- Adding adjacent space if available
- Don’t let your foot off the accelerator – keep collections up
- Having a financial assessment to get profit in line (see part three in December)
- Maintaining a modern office with up-to-date equipment
- Working on building a good hygiene program
- Starting the sale or transition within at least 3 years of your retirement date
- The possibility of a merger with a nearby practice