Are you looking to sell your dental practice? Find out the 10 must-haves on a buyer’s wish list.
When prospective dental practice owners research existing offices for purchase, what factors make or break their decision? Find out what ranks in the top 10 on their checklists when considering a dental practice acquisition.
Benco’s Practice Lifecycle team is dedicated to helping you find a potential buyer for your practice. However, they are there for you even before it’s time to sell. There are steps you can take now to make your practice more attractive to potential buyers a few years down the line.
What do prospective buyers look for in a dental practice acquisition?
So, which factors help a dental practice earn an “A” on a prospective buyer’s report card?
The following list is drawn from Benco’s base of knowledge gained through insightful conversations with more than 6,000 dentists across the U.S. in the past several years.
Read 10 factors below and contact Benco for a free consultation about your practice here.
Revenue collected in the range of $600,000 to $1.2 million with the mix of those as fee-for-service or PPO, or a combination of both. At the end of the day, what prospective buyers want to see is a profitable practice.
Room to grow.
Prospective buyers want to see that a practice is already expanding. If your practice has between two and four operatories, buyers can see there has already been growth. What they really want to see, however, is new opportunities to expand. An ideal practice has the proven demand and anticipated ability to support two new operatories.
An experienced, loyal team with a payroll percentage under 30%. Building your staff helps you serve your patients, but it also signals a healthy, well-run practice to buyers.
Clean and modern.
A well-maintained office updated with digital technology. The future is no longer the future! Whether you realize it or not, digital dentistry is probably already a part of your practice. Incorporating additional computer-aided tools may be easier than you think, and can help make your practice enticing to buyers.
Two full-time hygienists, with their rate of revenue collected in the 30 to 35% range. According to Dental Economics, a dentist who spends more than 25% of their time performing hygiene procedures is losing time that would be better spent on more productive restorative procedures. Having two hygienists frees up those valuable hours
An active patient base of over 1,200. Nothing instills confidence in prospective buyers quite like when your daily schedule is consistently full.
Average monthly new patient counts in the range of 25 to 50 or more. Are you managing an existing customer base or are you expanding? If you find your practice plateauing, Benco offers practice coaching and education services that can help you over the hump and get back to growing.
A diverse practice is a thriving practice! There should be a demographic mix of patients, ranging in age from 25 to 55 years old, generally.
Solid relationships that result in second- and third-generation patients. A good dental practice should be a family affair. The biggest vote of confidence in your practice is patients who send their family to you, year after year.
Owning real estate or committing to a long-term lease with a percentage between 3 and 5% of revenues collected. There are benefits to both owning and renting, and you need to decide which one best fits your practice. Real estate ownership is a great way to demonstrate the long-term value of your practice. By investing in your property, you invest in your practice.