Niche Exit Planning Strategies
Selling a Dental Practice
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet dental practices continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
You'll always have an excuse for not putting your business on the market. Selling a dental practice isn't easy, but we believe sellers can achieve their goals in any economic environment.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
Understanding Market Timing
Now may be the best time to sell a dental practice. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on dental practices. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Signs You're in Over Your Head
It's not uncommon for the owners of small dental practices to adopt a go-it-alone sale strategy. Plenty of owners sell their dental practices unassisted. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
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