As the years go on in a dental practice, many dentists realize that it is time to think about retirement. Frequently, semi-retirement is where most start. This can mean having a partner or younger associate join the practice with the intention of handing over the patients and practice to that associate or being bought out. Often, stress, burnout, or other personal issues bring on retirement. When a new partner is brought into the mix, the original dentist may become more invigorated and find that they are more enthused about their work again. Some, however, may not and feel like transitioning out of a practice is the only way.
Things to Consider
Some of the things to look out for when considering whether it may be time to retire and sell or transition the practice include:
- Can you financially afford to not work anymore, and are you financially secure without its income stream?
- Do you find yourself with an aversion to the practice of dentistry recently?
- Are there other interests that are more exciting that you wish to pursue?
- Do you find yourself not being able to physically perform procedures?
- Are you thinking of moving out of the area?
Of course, these are just some of the many reasons why it might be time to think about selling your practice. At Green Sail Transitions, we would be happy to consult with you and answer any questions you might have about timing, procedure, and options.
Getting A Correct Value
Many dentists may have idealistic notions about the value of the their practice and how much they could realistically get from a sale. At Green Sail Transitions, we can help evaluate and appraise your practice to give you an accurate representation of what you can expect from a sale or transition. By contracting with experts like us, you can be sure that our methodology and valuations have your personalized best interests at heart. We go beyond financial statements and accountants’ reports and dive into what your business is really worth.
Heed The Taxman
Taxes can be a key component of when and how much you sell a practice for. Allocating the price correctly can protect from tens of thousands of dollars of tax implications. Having an accountant who can work with the broker and you is key to making sure there are no unseen tax liabilities that might adversely affect your sale. At Green Sail Transitions, we can recommend an expert, and also feature a Certified Financial Planner® on staff to help you maximize the after-taxes net value of your dental practice.
Weighing All The Options
You don’t have to quit outright. Many dentists like the sale/work-back structure that can allow them years of semi-retirement and still are active enough in the practice. It is also a good way to see if you are really ready to transition out of being a practicing dentist without quitting whole hog. If you are five years away from your perceived retirement, it may be time to think about all the options that are available to you.