The pandemic has changed the #dental practice sales landscape. Practice buyers have newfound confidence to drive down values. Banks are still figuring out how to manage their risk when assessing business plans.
Action Brings New Strength focuses on what you can do today if you are considering, or have decided to exit your business.
It’s going to be a very different experience compared to before the pandemic.
But don’t worry, there’s plenty of support to guide you through your decisions and processes. An established dental broker like Lily Head Dental Practice Sales will be all over how the market is landing as we come out of lockdown. Which is one strong reason why you should engage with a dental broker you trust.
Two main changes to be on board with.
One: Supporting the lending application
Lily Head advises, “Principals will have to actively support the lending applications for prospective buyers. Purchasers, their finance brokers and the banks are demanding more detailed information before they approve lending. Of course, we can advise on what that information will be.”
Two: Due diligence
“The level of information you need to prepare to get the best result and satisfy legal due diligence is detailed”, says Lily Head. “If you purchased your practice over 20 years ago, due diligence, if there was much at all, will be a fraction of what you’ll have produced today. Regardless of any frustration you may experience over compiling the due diligence. Be sure to keep your eye firmly on the prize. There’s no way of avoiding this unless you wish to sell rather than simply shut the doors when you’ve had enough.”
Of course, Lily Head Dental Practice Sales can introduce you to specialist dental solicitors. Who can advise on the information the buyer’s legal team will need to see. Much of the due diligence can be done before you market your practice. It’s always good to get your accountants and other advisors on board with this and explain what your plans are so they know what to expect.
So, what else is there to consider and plan for?
If you would like to talk about anything to do with buying, selling or financing a dental practice please Contact Us today.
This article was first published by our partners at Denplan for their members and the wider #dental community.