Blog Articles

Maximize the Sales Price of Your Dental Practice

What to consider when selling a practice?selling-dental-practice-appraisal
How quickly can I sell my dental practice? How should I price my practice? What amount am I hoping to walk away with at the end of the transaction? These are some of the questions that we commonly hear when talking to selling dentists. There are common features of valuable practices that will help to provide the answers. Some of the following strategies can be implemented which may help maximize the selling price. While pricing strategy is specific to each market, strength and stability of the dental practice for sale is of tantamount importance in any market.

Opening an Optometry Practice versus Optometry Job

Starting an optometry practice cold can be a daunting yet rewarding experience.  Many vision care professionals leaving optometry school have contemplated this path versus taking an open-optometry-practice-loan-startupemployed position.  But the decision doesn’t need to be made immediately.  Some optometrists opt to work for a few years before starting a private practice.  The decision depends on personal preference and inclination as much as it does on the vision care market.

Growing a medical group practice by acquisition vs. hiring

Medical group expansion in today's enviornmentmedical-group-merger-sale-acquisition-expansion

Health care reform and the overall practice environment have caused a flight to safety for many independent doctors.  Physicians are fleeing to hospitals and health systems in troves, seeking a perceived sense of safety and an exit strategy.  But many of them did not bargain for the unfavorable economics of selling to or integrating with a hospital.  Selling doctors commonly receive far less than fair market value for their practices and are saddled with integration challenges for which hospitals can be ill-equipped to deal with.  Enter the group practice.  For medical groups (even small ones) looking to grow and expand their marketshare, there is ample opportunity to make key acquisitions in the consolidation chaos.  Medical groups have been able to approach selling doctors in many instances and offer them better solutions than hospital integration.  And if a reasonable deal can be reached, everyone wins.

Valuing a Medical Practice for Physician-Hospital Integration

What is a Medical Practice Worth to different Buyers?
We just completed a valuation of a gynecology and obstetrics practice for a potential hospital integration and post-sale employment of the selling physician.  The assignment entailed a fair market valuation of the practice assuming a third party buyer.  In a hospital integration scenario, it is common occurrence for a selling doctor to receive less than fair market value for their practice.

How are physical assets valued in a medical practice?

A medical practice has various components of value, some more apparent than others.  The primary aspects which usually come to mind are the tangible assets comprising medical equipment, inventory, leasehold improvement, personal property, etc.  However, the main component of value in a medical practice is typically the goodwill intangible assets which cannot be readily observed.  Intangibles may be the product of the existing patient base, earnings, staff and systems in place, among other things.

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Most doctors looking to buy or sell their practice can’t find the time to figure out the complicated steps involved. At Transition Consultants, we’ve created a process that makes the transition painless so they can move into their next season and start living life on their own terms.

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