A practice needs a certain curb appeal to attract buyers – just like selling residential real estate. However, a practice’s curb appeal extends beyond its physical appearance. Buyers want a well-run practice that makes a consistent profit.
Fortunately, there are many low-cost steps you can take to boost your practice’s appeal. Even if you are a few years from a potential sale, start taking steps now to showcase your practice’s strengths.
- Clean up the clutter. Most practices have accumulated extra stuff over time that can make the office feel cramped and dated. Ditch the 1983 dental journals, donate the old dental equipment in storage, and properly discard records that have not been touched in 20 years. Pay extra attention to little-used closets or cabinets.
- Spruce up the décor. Potential buyers may immediately lose interest if the practice does not look fresh, clean, and sanitary. Low-cost improvements can go a long way. Consider repainting, replacing carpeting, updating a few decorations, and recovering dental chairs. A deep-cleaning, window-washing, and landscape clean-up can also help.
- Tune up your equipment. Just like a malfunctioning furnace can make a homebuyer wonder what else has not been maintained, your equipment’s condition can affect the practice’s salability. We recommend having your equipment examined and making any necessary repairs. In extreme cases, you may need to replace certain essential items.
- Do not let your lease lapse. For doctors who lease space, it is usually important that a long-term lease is available to a buyer. A fine dental practice without a facility in which to practice has little or no value. Moreover, financing companies typically require a buyer to obtain a long-term lease. Make sure the lease is not scheduled to expire in the near future.
- Maintain your production. It is not unusual for a doctor contemplating the sale of the practice to take more time off and let the practice’s revenue decline. Under these circumstances, the seller may say, “But my practice has lots of potential!” Unfortunately, most buyers do not buy potential per se. It is better for a seller to show that the practice’s production has been steady.
These tips can help turn a good practice into a great practice and can certainly increase its salability.
For greater support and expertise to guide you through the sale and into retirement, join the ADA Practice Transitions platform today.