Brokers Consulting - Wyndsor Dental Transitions

10 STEP CHECKLIST FOR MAXIMIZING YOUR PRACTICE VALUE FOR SALE!

Enhancing the value of your dental practice is essential—whether you're planning to sell now or in the future.
Implement these strategic steps to ensure a smooth and proitable transition you can “Sink YOUR Teeth Into”!

1. ORGANIZE YOUR FINANCES

Maintain clean and well-documented financial records by working with a CPA or bookkeeper that specialized in dental. Using accounting software like QuickBooks streamlines financial management and instills confidence in prospective buyers, expediting the sales process.

2. OPTIMIZE CASH FLOW

Reduce operational overhead by reviewing industry standards for expenditures such as keeping dental supply costs within 5-6% of total revenue (excluding lab fees) etc.

Work with a dental-specific CPA to benchmark expenses against industry standards.

Pay down outstanding equipment loans when possible.

Avoid selling accounts receivable with the practice; instead, focus on optimizing collections with Wyndsor Dental's Debt Resolution Offer.

3. MANAGE ACCOUNTS RECEIVABLE

Your financial coordinator should be proficient in collections, as high AR balances can deter buyers. Best practices include:

Keeping AR minimal for fee-for-service practices.

Ensuring PPO balances over 60 days are not excessive.

Recognizing that balances over 90 days are often uncollectible.

Wyndsor offers a "Debt Resolution Offer" program to assist with collections.

4. MAINTAIN A FULL SCHEDULE

Buyers will review your practice management software and hygiene schedule for the next six months. A full and well-maintained schedule signals efficiency and patient retention, increasing your practice's attractiveness.

5. CONTINUE TREATMENT PLANNING

Avoid slowing down treatment planning before a sale. A pipeline of committed treatment enhances the tangible value of your practice and reassures buyers of ongoing patient care. Continue gardening for new treatment opportunities!

6. ENHANCE OFFICE AESTHETICS

By making a modest investment with updating your office with modern colors, flooring, and furniture to create a welcoming atmosphere entices buyers! Small yet impactful upgrades improve patient comfort and may even boost treatment acceptance rates. Consider having your staff evaluate the patient experience by observing the waiting area, bathrooms, and operatories.

7. OBTAIN A MARKET VALUATION

A professional valuation from a licensed business broker, such as Wyndsor Dental, provides an accurate assessment of your practice's worth.

This includes:

Local demographic trends.

Housing values and income levels.

Population growth and competitor analysis.

School enrollment analysis

Analysis of large employers surrounding your practice and their financial health and sustainability.

Complete analysis of all financials including practice reports, tax returns, profit and loss for the past 3 years.

8. DEVELOP A TRANSITION PLAN

Work with legal and financial advisors to structure the sale in a tax-efficient manner, maximizing proceeds while minimizing liabilities.

9. MAINTAIN CONFIDENTIALITY

Keep transition plans private to prevent staff uncertainty and attrition, which can negatively impact practice value. A stable, experienced team is a key asset for any buyer.

Keeping the dental transition efforts quiet is also crucial in maintaining the patient base. Many times when a patient becomes aware there will be a new owner they will search for other options for the dentistry. It is also recommended the new owner is presented as a new "Partner" verses a new owner once the transition is complete!

10. INTERVIEW DENTAL TRANSITION ATTORNEYS

Wyndsor Dental has worked with the top Dental Transition Attorneys in Chicago and the MidWest. Should you like our "Suggested Attorney's" feel free to reach out to us!

ADDITIONAL TOOTH TALK TIPS

Document all upgrades made in the past five years (decor, equipment, etc.).

Complete the Wyndsor Dental HR Form to provide buyers with staff details.

Create a secure spreadsheet with vendor usernames and passwords.

Encourage staff to collect patient email addresses through a check-in raffle.

Run a patient referral contest to increase new patient flow.

By implementing these strategies, you'll maximize your practice's value and appeal to potential buyers. Partnering with Wyndsor Dental Transitions grants you access to invaluable resources, ensuring a smooth and successful transition-a true win-win with Wyndsor!

A woman with blonde hair and wearing a black jacket.

SHERRIE S. HICKS
Founder

WYNDSOR DENTAL TRANSITIONS, INC
Licensed Business Broker
Specializing in Dental Transitions
Direct: (847) 242-1203
S.Hicks@WyndsorDental.com

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Wyndsor Dental Transitions includes a
team of financial analysts that will create your
Complimentary Market
Valuation Analysis!
(a $3,500 value)