Equipment & Technology Buyers' Guide - Q3 (July 1-September 30) 2017 - 19

Every Dental Practice Needs a Current Valuation!
By Hillary Waxman
At some point in your career you either joined or purchased a practice and
chances are, a practice appraisal was done. So if you're thinking, "I'm not
bringing on an associate, or expanding or selling my practice; this doesn't
apply to me", think again.
There are other highly important reasons to have a current practice
valuation. Your associates, staff, patients, and most importantly - family -
depend on the success and continuity of your practice. It represents one of,
if not the most important assets you own. You need to protect it and your
loved ones in the process.
All practice owners need to have a Letter of Instructions that spells out in
detail what needs to be done in the case of an emergency and who the key
contacts are (e.g., accountant, attorney). That way the practice can continue
to run, your employees can work, and your patients can be cared for even in
dire circumstances.
If you are a sole practitioner, it is especially important that you have a
current practice valuation. In the case of a disability or the untimely death
of the practice owner, approximately 30% of practices will sell within 90
days. After that timeframe, the chances of a practice selling at any price
decrease dramatically. If a practice value hasn't already been established,
the likelihood of selling quickly is significantly reduced. By having a current
practice valuation, the doctor's family will be able to sell the practice and
benefit from the doctor's hard work.

That same practice valuation is also available for the many other reasons
normally associated with practice valuations. If you purchase equipment,
expand your practice, or take on an associate, you will need a practice
valuation for financing, and to determine any future buy-in arrangements
for the associate. While the practice valuation may not be current at the
time you go to the bank or are ready for an associate, depending on the
appraiser, you may be able to have the valuation updated rather than getting
a completely new valuation.
There are many reasons to get a practice valuation; buying and selling a
practice is just two of them. Protecting your family and legacy may be
the best.
About the Author: Hillary Waxman is the Director of Marketing for Henry
Schein Financial Services. She has more than 20 years of experience as a
strategic marketing and communications professional with Business-toBusiness and Business-to-Consumer companies across a broad range of
industries. Ms. Waxman has an MBA from the Wharton School of Business
of the University of Pennsylvania and received her Bachelor of Science
degree from Cornell University.
Henry Schein Professional Practice Transitions can be reached at
800-988-5674 or ppt@henryschein.com. This is neither legal nor
accounting advice.

WHEN SKILL AND
PRECISION ARE
WHAT MATTER

A practice valuation must be accurate
to be useful.
A precise valuation can help you maximize your sale
price, apply for financing, or negotiate with your future
partner. Don't settle for less.

www.henryscheinppt.com
1-800-988-5674

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PRACTICE SALES n VALUATIONS
n TRANSITION CONSULTING/PLANNING
n

ASSOCIATESHIPS

For more information, please call 1-800-905-6932

5/8/17 2:53 PM

http://www.henryscheinppt.com

Equipment & Technology Buyers' Guide - Q3 (July 1-September 30) 2017

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