Selling your dental practice at the best time
It requires meticulous planning and the right professional support
Deciding to sell your dental practice is a monumental decision, often the culmination of a lifetime’s work. To ensure you achieve the best outcome, it’s essential to consider several key factors, including timing, expert advice, and planning.
Firstly, timing is crucial. Market conditions can significantly impact the value of your practice. Currently, demand for dental practices remains high, with both corporate groups and independent buyers eager to invest. However, rising inflation and interest rates could influence goodwill values in the future. Thus, planning your sale strategically can maximise your returns.
Engaging expert agents, accountants, and lawyers is indispensable. Experienced professionals can provide insights into market trends, helping you to position your practice attractively. They will also advise on tax planning to minimize liabilities and retain more of your sales proceeds. Dental-specific experts will handle the intricacies of the sale contract, ensuring all legal aspects are covered and protecting your interests.
Structuring the sale correctly is another critical aspect. This includes deciding between a share sale or an asset sale, each having different tax implications. Proper tax planning can significantly impact the net proceeds from the sale, making it a vital component of the process. The new Labour Government has announced a review of CGT rates and the possibility of harmonisation with income tax rates may have a materially adverse impact on the tax burden when selling if it is implemented
Choosing the ideal buyer is not just about the highest offer. It’s about finding someone who will look after your team and patients with the same dedication and care you have. A good match ensures the continued success of the practice and the well-being of those you leave behind.
Forward planning is essential. Start preparing years in advance, if possible. This includes maintaining high standards of practice management, keeping financials transparent, and ensuring a strong patient base. By doing so, you enhance the attractiveness and value of your practice.
Selling your dental practice requires meticulous planning and the right professional support. It’s about safeguarding the legacy you’ve built over the years and ensuring a smooth transition. With careful preparation and expert advice, you can achieve a successful and rewarding sale.
With experience in more than 150 purchase and sale transactions, we would be delighted to discuss your approach. Do give us a call.
Victoria Forbes
Director, Dental Accountants Scotland
E: victoria@dentalaccountants
scotland.co.uk