When patients step into your dental office, they’re choosing your practice over others in the region. That choice reflects the excellence of your operation and the aspects you have established to gain trust and foster a positive reputation. Patients may be drawn by the brand’s messaging or online reviews initially. But they typically make a long-term decision based on the quality they experience after one or two visits with your team.
Potential buyers want the same level of trust in your business if you’re considering selling your practice. They are also interested in the brand and operations, and ultimately drawn to the net income. They will delve deeper into aspects that your patient base doesn’t see. It’s during this in-depth examination that sellers may encounter unclear metrics and question the market value of your dental practice.
Vital practice data is hiding within your practice management software and financial statements. When data is well-maintained, it becomes much simpler for a buyer and their advisors to analyze and assess your practice. Unfortunately, we often come across motivated sellers with disorganized reports, which can weaken the value or appearance of the practice. Some common examples include:
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Blending business and personal expenses in the Profit and Loss statement.
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Revenue that’s not linked to specific providers.
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Vaguely categorized expenses and overhead percentages.
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Incorrect active patient reports that depict inflated numbers.
Consider a practice that primarily relies on hygiene services and has two hygienists contributing a significant proportion of the practice’s production. A buyer should find the specific procedures each RDH performs and if periodontal treatments account for one-third of the hygiene production.
With precise employee reports, a rapid analysis could also demonstrate if each hygienist generates approximately three times their salary. Hygiene production can often generate enough revenue to cover practice payments for the new owner. Precise representation of this data can comfort nervous buyers and support their buying decision.
Trustworthy Reports Foster Trust
When buyers discover disorganized data during their initial analysis, it diminishes their trust in your practice. They start to question if they’ll find other unexpected issues in the business. And if the broker tries to rationalize unclear data, the buyer’s trust may further weaken.
A practice transition specialist aims to support the sale of an attractive practice with credible data that supports future cash flow. Numbers don’t lie, and potential buyers quickly lose trust in a transaction if there are discrepancies in the data.
Inversely, clean reports build confidence, increasing the chances of a successful exit and a favorable sale price. Solid data positions your practice for an ideal sale by reflecting transparency and integrity in branding, operations, and finances.
Your practice must shine in all aspects to stand out, and accurate business reports set a vital tone. DSOs require comprehensive data to make informed purchase decisions and ensure the potential for future earnings. Buyers want to see a transparent and credible story in a metrics-driven business environment. Clean reports simply help position a practice for a sale.
Accurate reports can give a seller’s practice a competitive edge by attracting potential buyers and establishing trust in their financials. However, if the reports don’t match up, your practice may not be the first choice for a buyer to invest. Well-organized and credible data sets your practice apart and enhances its sale value, even if other practices have similar features.
Optimize Now For Maximum Practice Value
It’s best to fine-tune practice data long before listing for sale. DDSmatch believes in optimizing a business to maximize value for a suitable buyer. Shoring up reports with the help of the trustworthy team can help support the exit you deserve.
You’ve made many wise decisions to build trust and foster a positive reputation with your family of patients. We want to make sure the internal data adds to your sales appeal, maximizes value, and helps you achieve a successful exit when you’re ready. Contact us today for a complimentary consultation to review your current situation, future goals, and the best path forward!