Agents of Change: Clearing the hurdles of selling your dental practice
Navigating our way through a pandemic is a challenge in itself. But when dental practice owners are faced with whether to sell-up and retire, or continue in a PPE-clad world, it can be tough to predict the best route for them. Lily Head Dental Practice Sales are experts in helping Dentists make the best decision for them and their business. As ‘agents of change’, they’re helping Dentists all over the UK to change the course of their personal and professional lives.
Entering change on this scale takes courage and resilience – two important qualities that can help us battle through stress. With this in mind, Abi Greenhough, a Director at Lily Head Dental Practice Sales, shares some valuable insights to help guide Dentists who are stuck at these difficult crossroads.
First hurdle. Challenging the status quo.
Abi tells us, “The main barrier for most people to taking action is the ‘status quo’. By ‘status quo’ I mean when dentists know something will have to change in the future but who struggle to come to terms with the disruption and therefore procrastinate or do nothing.”
Abi continues, “Early decisions are often the ones you have more time to make, are often the best ones and therefore the least stressful…Delayed decisions can often be rushed, stressful, not fully considered and sometimes very expensive.”
“One of our core values is to ‘handle our clients with sensitivity and care’”, says Abi. “This is because we recognise that dentists who decide to sell their dental practice are willing to change the status quo and accept that with that will come disruption and some challenges. We want to recognise and reward that commitment and the trust they have placed in me and my team.”
Second hurdle. Deciding on your goal.
“We are always talking to dentists about strategies to become practice owners, or strategies to exit a dental practice”, says Abi. “These are big decisions with significant consequences for our clients, their families and colleagues. The discussions always start with what they want to achieve and what the journey would look like to achieve a great outcome for them.”
A Dentist’s financial outcome is pretty high up the list, but not the only point to think about. It’s only human for Dentists to be fondly attached to their practice which they’ve put time, money and effort into. So it’s not easy to just quit and sell-up. Thoughts may cross their minds like, ‘what type of buyer will be interested in my practice?’ ‘When will they pay me?’ ‘What will the handover look like?’
Third hurdle. Making time to prepare.
Abi recommends preparing five to 10 years ahead of selling a dental practice to ensure as smooth a process as possible and to secure the maximum ROI. She says, “We do know that some principals find themselves in distressed circumstances and cannot plan this far out. Theirs or a partner’s ill health, divorce or bereavement can shorten the preparation period. Our advice is not to shorten the preparation period simply because you did not get around to doing something.”
“You may have been sitting in the Principal seat for 35 years and you know you cannot do this forever. But despite that, ‘letting go’ is something you would rather continue to put off or ignore altogether. It’s a bit like ‘cold calling’ in sales. Everyone knows they should do it, but not everyone does it.”
Your goal is crucial.
Building a picture in your mind of how you want your future to look and what you’d like to do after selling your practice is a great way to decide what you want, Abi tells us. Maybe you’d like to do some consulting or teaching in your profession, or join a professional body? Or maybe retirement is your plan – so think about what your retirement could look like.
Abi comments, “The Dentists who say, ‘I don’t know what I want to do next. All I know is dentistry’, are the ones I encourage to spend some proper time figuring out what they want their future to look like.”
Her discussions with Dentists often reveal insecurities. Dentists often worry about not feeling relevant, losing their reputation, or even their position in society. They may feel that owning a dental practice defines them to many people. It’s an identity, a rhythm in their life which gives them their purpose of being a carer of patients, and being respected by others in the practice or industry as the go-to person. No wonder it’s a difficult decision to make. Challenging the status quo is a risk. Having a goal can help them stabilise and make the best decision possible.
Does this sound like you?
If so, Abi recommends that you share your thoughts with your close friends and family. They’re unlikely to tell you that your change in status will make you irrelevant! “One thing I can tell you is that the new owners of your business will be heavily reliant on your counsel”, Abi reassures.
Once you’ve sold your practice, a change of role is inevitable. But, you can negotiate with your buyer to make sure you get a deal you’re happy with. You might stay on to do clinical work and reassure the patient list that there’ll be no disruption to service for the next three to five years. You might choose to leave the business immediately. Whatever your arrangement is, Abi advises, “embrace the change and agree in detail exactly what your scope of responsibilities are with the new buyers.”
Remember: just because you’ve sold your practice and liquidated your asset doesn’t mean you have to give up dentistry. If dentistry, is your passion, you’ll find a way to keep that passion alive.
In the words of Lao Tzu, ‘The journey of a thousand miles begins with one step’.Or in the words of Nicholas Sparks, ‘It’s never too late to start doing the right thing’.
Either way, both these sentiments apply to the process of abandoning the status quo and taking control of what your future looks like. For many dentists selling their dental practice is the key to unlocking their future.
What does retirement look like to you?
Here are some points that Abi recommends you start to get your head around with your family:
Get the reassurance you need.
You don’t have to make a decision alone. Abi recommends starting a discussion with your trusted advisors well in advance of making any concrete decisions:
Finally, when you do come to sell, pick a dental broker who you trust, and that has access to the entire market. This way you’ll get the most choice.
Author: Abi Greenhough. Director at Lily Head Dental Practice Sales.
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