Sidekick - Autumn 2016 - East - 16
Exiting From Practice Ownership: Planning
One of the Pivotal Transactions of a Lifetime
PETER DOCTOR
GARY KAYE, DDS, FAGD
To finish the
moment to find
OWNER
EX-OWNER
the journey's end
in every step of the
road, to live the
greatest number
of good hours,
is wisdom.
-Ralph Waldo Emerson
Why is it important to plan our exit?
How much do we need? For most, our
practices represent a large percentage of our
wealth and income. When the practice is gone,
will we have the finances to pursue the lifestyle
we want? At what price do we need to sell our
practices to replace income and estate
planning needs?
The Practice Valuation Gap
Discussions with practice brokers and valuation
professionals help us understand the intrinsic
valuation of our practices and comparable
valuations in our marketplaces. High valuations
result from practices with strong sustained
growth and great profitability. If our practices
cannot generate the required funds, we have a
value gap, and we must take steps now to grow
the practice and improve profit margins.
Pulling the levers to maximize practice
performance and exit valuation
The Strengths, Weaknesses, Opportunities,
Threats (SWOT) analytical tool is a great way
to review how well the practice is doing. One
place to start is by identifying opportunities
that fit with our strengths. Critical weaknesses
have to be addressed, too.
16
Sidekick | Autumn 2016
High-impact levers include:
* Office managers who are fully engaged
* New technologies that transform processes
and make us "local" leaders in services like
same-day restorations
* Removal of disengaged team players holding
back the practice
* Environment where team engagement is at
the highest possible level
* Listening to patient needs and feedback on
service
* Partnerships with state-of-the-art laboratories
opening up cost efficiencies and high-value
services
* Key performance indicator tracking, to drive
better performance
* High levels of patient referrals and "net
promoter scores"
* Identification of competitive advantage
* Marketing and communication improvements
Emotional readiness to exit
In addition to financial considerations
surrounding an exit strategy, another factor is
"emotional readiness" to leave the practice.
The practice has defined our professional
identity for many years making this a
bittersweet transition.
Table of Contents for the Digital Edition of Sidekick - Autumn 2016 - East
Contens
Sidekick - Autumn 2016 - East - Cover1
Sidekick - Autumn 2016 - East - Cover2
Sidekick - Autumn 2016 - East - 3
Sidekick - Autumn 2016 - East - 4
Sidekick - Autumn 2016 - East - Contens
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Sidekick - Autumn 2016 - East - Cover3
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