Dental Articles

Many of them had already begun the traditional approach to their retirement by decreasing the time spent in the dental office resulting in, of course, a decline in office productivity. After all, most dentists at this point in their career do not have the financial demands they once did in early years. Many of these dentists had already began to: refer out work they previously enjoyed, but now find tedious, work shorter hours and fewer days, and some, accept no new patients into the dental practice.

I have often wondered why it is that dentists spend so many years building a business (the practice) that develops considerable value, and the remaining years "running it into the ground" just when we may need those funds the most! Dentists usually realize only a fraction of its value at retirement, if they are lucky enough to sell it at all.

By planning ahead, a dentist can sell his practice and continue practicing as much or as little as he or she desires, and for as many years as she desires. By locating a compatible merger prospect, the seller can protect the full market value of the practice by locking in the purchase price long before retirement.

The sale turns a non-interest-bearing asset (the practice) into an interest-bearing while the seller continues to dental practice. An astute businessman would jump at a chance to sell his business and continue to derive an income from it years after the sale.

A. Increased personal freedom. You are no longer tied down with costly overhead expenses when taking those long awaited vacations, or while pursuing other dentistry career possibilities or hobbies.

B. Security. Sudden death or disability will not diminish the dental practice value. It also eliminates one of the hardships faced by the grieving widow and family, the liquidation of the practice.

C. Assured Income. No matter how much or how little the dentist works, he will enjoy an income since he is always receiving a percentage of his production.

D. Transition. The dental patients will appreciate the time to become familiar with the purchaser as the seller "phases out."

There are substantial benefits to the dental practice buyer as well. There is no better way to make a quantum leap in the growth of your practice than a practice merger. 

The practice gross can be doubled without doubling the overhead, making the purchaser's dental practice far more profitable. The purchaser also enjoys the benefits of having a "built-in" seller-dentist to work alongside.

Securing your future should always include plans for the eventual sale of your practice, whether you are you are five, ten, or fifteen years from retirement. Studies have shown that the dentist who plans ahead will, on the average enjoy up to $500,000 more income during the retirement years over the dentist who goes the traditional route of phasing out of practice without a plan. Planning is the key.   

Successfully Transition Your Dental Practice: Contact NDA Member, Mike Haase.

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