Are you thinking about selling your dental practice? If yes, there are lots of factors to be considered for a successful transition to selling a dental practice. Your dental practice is one of the most valuable assets in your career. Selling it will influence your retirement life and it is important to make the best out of it. In this article, we have come up with the most pertinent conditions to be considered before selling a dental practice.
1. Discuss with your financial advisor
Before selling a dental practice, you must ensure that you are ready to sell your dental practice. It is important to know whether you can afford to sell your dental practice now. In order to know that, you must meet your financial advisor and discuss whether you are financially prepared for this. Factors like your pension fund must be taken into consideration before selling your dental practice. With that, you will have a better understanding of whether it is the right time to sell your dental practice to follow through a safe and happy retirement lifestyle.
2. Review the Tax Consequences of Selling a Dental Practice
Now that you are ready to sell your dental practice, it is vital to understand all the tax consequences of selling a dental practice. Generally, selling a Dental practice has certain tax obligations that must be reviewed with your accountant. For instance, for any profit you make you will pay income tax. While selling your dental practice, the price is segregated into various factors like office equipment, dental supplies, covenant not to complete, and personal goodwill. All of these factors have different tax based internal revenue services. So consulting your accountant is a must to build a tax friendly valuation.
3. Evaluate the condition of your facility
First impressions are always important and it is highly recommended to evaluate the condition of your dental practice. Ensure to repair all the broken things and keep them clean. You can also make a few changes like Fresh paint, adding new carpet to enhance the overall appeal of your dental clinic. Make a good impression by cleaning up the office and desk for a more attractive and modernized interior. Once everything is under favorable conditions, you can move forward in selling your dental practice.
4. Sell When Your Practice Is Most Valuable
In general, the selling price of the dental practice must be higher than the purchase price. To acquire maximum profit while selling your practice, it is essential to sell when it’s most valuable. So, make sure to consult a certified appraiser and get a comprehensive valuation of your dental practice. Appraisers usually include all the physical attributes of your dental practice which comprises the office location, equipment, etc. With detailed reports and accurate assessment, you can find the value of your dental practice. However, it is also important to have realistic expectations of dental practice’s value.
5. Ensure it’s the right time for you to sell
If you are looking to sell your dental practice and prying on when is the right time? That’s a perfect question to be considered before selling your practice. The first and foremost thing to be considered is whether your dental practice is successful and thriving. Then, to make sure the dental practice is at its best and financially stable. Apart from that, it is necessary to check whether you are ready to give up on your practice and move forward for your retirement.
There is lots of planning involved before selling a practice. For those who are ready to sell your dental practice, these are some essential factors that should be considered before selling your practice. Now, you have some ideas on what to consider before selling and if you’re still determined to sell your practice. We are here to guide you through selling your dental practice and ensure a smooth transition.