In a new article from DentistryIQ, Wade Coleman, JD and John K. McGill, JD, MBA, CPA discuss the topic of boosting a practice’s value in order to prepare for sale. They emphasize the importance of early planning, recommending that doctors begin the process of valuation and implementation of a customized practice transition game plan at least two to four years before they anticipate retiring. Though this time frame might seem excessive, it is necessary in order to account for issues that can make sale difficult, such as the practice’s location or specialty, as well as to ensure that the owner of the practice is on track to accumulate the assets needed to support his or her current lifestyle in retirement.
Coleman and McGill put forward four strategies to use in preparing for the sale of one’s firm:
- Raise fees annually. This is the best way to assure increases in collections and related profitability, which translate into an increased sale price.
- Review and control overhead. The lower the overhead, the higher the profit margin and, ultimately, the sale price.
- Increase marketing efforts. This is necessary in order to maintain new patient flow, an important draw for potential buyers.
- Upgrade office appearance and technology. The benefit of making minor cosmetic improvements to the office building and upgrading to new technology is a positive impact on the marketability of the practice and a higher ultimate sale price.
If you are starting to consider retirement, now is the time to act! Contact your Goldin Peiser & Peiser accounting professional to discuss your transition plan.
To read more, see the article from DentistryIQ.