I’m disappointed to say that only a small percentage of calls we get about the potential sale of a dental practice is about creating a transition plan. Most of the time the practice owner calls because they have decided that “the time has come” and wants to know if we can help. The decision to call was not the result of a carefully crafted exit strategy but rather the realization that they are tired of working, want to make a change in their lifestyle, or in some cases declining revenue has taken the profit out of their practice. The lack of a plan often leads to a declining value of the practice and in some cases, the practice is unsellable as an ongoing business. While we try to be as accommodating as possible (otherwise we would be out of business), sometimes it’s too late for us to help.

Bo Burlingham’s book, Finish Big, makes the case that how and when a business is transitioned should be a part of the start-up business plan. What is the purpose of the business and how long should its owner stay? While most dental practices were started for the purpose of giving the dentist a job, some sense of direction should be in place as the owner gets toward the end of that journey. As we will discuss in more detail in Part Four of this series, a lack of planning may find the owner on the dark side of the demographic reality that no buyer exists for their practice. Do you know what the minimum revenue is for a sustainable practice in this market? What about technology, curb appeal and lease guidelines? Knowing the answer to these and other questions in advance of making that “the time has come” call may well help you maximize the value of what is no doubt one of your larger assets.

I will share with you that our consultation with potential seller clients is not all about money. After the exchange of some polite conversation and a few basic facts, we ask what may be the most important question of the interview; “What are you going to do with yourself after I sell your dental practice?” While some discussion about money is in order, we find the answer to a client’s post transition plans is mission critical. We often find that Doctors without a clear answer to that question make for difficult clients and reluctant sellers. An unwillingness to cooperate in the valuation and marketing process along with a lack of good faith negotiation suggests that the seller is not really ready to let go. To some, retirement and death can seem almost the same thing. While “working until I die” may seem ambitious, having a practical game plan seems like a better idea. We will be happy to schedule a complementary one hour conference to discuss your future and the future of your practice.

Steve Wolff, DDS

UMKC Class of ‘77