Your net worth is tied closely to your dental practice. You count on the eventual sale of your practice to fund your retirement. Bottom line: your practice is your most important asset. Do you know how much it’s worth?
If someone wanted to purchase your practice today, or if you wanted to bring in a new associate or buy out an existing one, could you confidently respond with its current value?
If you don’t know the true market value of your practice, you don’t know whether you’re on track for your practice’s goals or your retirement goals. A dental practice valuation will tell you your practice’s current market value – and you’ll get tips to help grow that value.
Even if you’re not planning to sell anytime soon, a practice valuation can help you manage your investment. When you know the value of your practice, you can make more informed management decisions. Your practice can become or remain profitable. Its value is more likely to grow.
A practice valuation can also help you consider the tax implications of decisions like selling or gifting interest in your practice.
And if you are ready to sell, a valuation can help you negotiate part ownership with a partner or the complete sale of the practice.
It’s a buyer’s market. Dentists are retiring faster than new dentists are replacing them. And as baby boomers begin to consider retirement, many dental practices will be coming up for sale.
In order to maximize your eventual selling price, you’ll want to do all you can to make it more attractive to a potential buyer. The insights from a practice valuation can help you create “curb appeal” for your practice, potentially increasing your sale price.
Do you need to know the value of your dental practice? Want help increasing your practice’s worth? Rea’s dental valuation professionals will evaluate the current value of your practice and help you build a plan to increase that value. We’ll help you manage the value of your most important asset: your practice. For more information, contact our dental accounting professionals or Alan C. Hill, CPA, the head of our dental team.