Increase The Value of Your Dental Practice
Most dental professionals will rely on the value of their dental practice as one of their major sources of retirement income. With a little planning and by implementing a well-thought-out exit strategy, you can maximise the value of your practice. But how do you figure out what your practice is worth, and how can you increase its value? The short answer is: buyers want practices that are growing. Let’s take a look at some on-going factors that influence the value of your practice.
1. Existing Patients
A strong base of existing patients lay the foundations for a growing dental practice and are important for recurring revenue. Typically, a buyer would like to know how many active patients you currently have, along with the average number of treatments provided per month.
2. New Patients
As important as existing patients are, new patients are just as crucial as they help drive the growth of a dental practice and provide future revenue opportunities. In order to attract new patients, be sure to follow industry best practice in your marketing efforts – i.e. a user friendly website and active social media accounts. Furthermore, it’s always a good idea to keep a track of your marketing activities to not only measure results but show prospective buyers how your practice can benefit from strategic marketing activity.
3. Good Reviews
We are all aware of the importance of the patient journey; their visit is much more than just a quick check-up or clean. The more patients are satisfied with the level of care they receive, the more likely they are to leave good reviews which makes your practice more attractive to others. Good reviews will give a potential buyer confidence in your brand as well as ensuring a steady stream of new patients.
4. Technology and Established Systems
As technology advances, buyers want to purchase a practice with the latest technology and digital equipment. Investment in equipment such as intraoral scanners, enables the provision of specialist treatments and opportunity to significantly grow turnover. Furthermore, outdated equipment can decrease the value of your practice as buyers want practices that are aesthetically pleasing for patients and allow a smooth day-to-day operation.
5. Harmonious Team
Team and office management is important to the success of any dental practice, but especially when trying to attract a buyer. From the clinicians to the front of house staff, your dental team needs to be strong and on board to move forward. A well-managed dental practice team with a good leader can keep turning out revenue long after the current owner has moved on.
Even if you have not yet given your exit strategy any thought, by focusing on the factors above you can start maximising the value of your practice without even knowing it. To get an idea of where your dental practice stands in the current market, it’s important to have a valuation from a qualified and experienced broker.
For more information about dental practice valuations or if you’d like to know how to go about selling your practice, please get in touch for a free consultation.