As with anything in life, what something is worth is dependent upon what a person is prepared to pay, and what the overall offering is.
Consider this, let’s say that you want to sell your dental practice because you have become tired of all the administration that goes with the profession. Perhaps you just want to be a dentist again and leave the running of the practice to your team and a management structure, knowing that you can close the door when the patient is with you and focus upon the needs of that patient at that unique time.
In this situation if you simply sold to the highest bidder you may not fulfil your requirements of being able to simply go back to being a dentist. It could be that it would be worth taking a lower cash amount so long as the offer came with the ability to help you look after your patients and fulfil the other requirements of why you are thinking of selling in the first place.
Before selling your practice you need to be very clear on the reasons why, and what you hope to achieve from that sale.
So, back to the question how much is my dental practice worth? Our answer is that it is worth a multiple of profits, in conjunction with allowing you to go back to practising quality dentistry and providing you with a management team and structure to help you do that.
Once we have had a discussion about what you want to achieve in your career, and once we have seen audited accounts, we will be able to put together a package for you that allows you to continue working as a dentist plus provides you with an injection of cash as compensation for allowing your staff to buy in to your business.
Valuing a dental practice is often very complex as many small business owners include their own personal expenditure within the business in order to save tax, so without a detailed investigation into the profit and loss account it becomes difficult to let you know exactly what you’re dental practice is worth.
Future Health Partnership are always happy to receive enquiries and to let you know what we think your dental practice is worth in terms of compensation for the staff buy in. Please contact us for more information.