The time to transition away from your practice can sneak up on you. Did you know that should actually start preparing at least three years before you plan to find a buyer for your optometry practice.
The ideal selling timeline looks something like the following:
- Year 1-3: Prepare three years of well-organized financials to present to a bank and buyer
- A few weeks to a month: Appraisal period
- Year 4: Find and sell to an interested buyer
- Total: 4-5 years
Things that can affect the timeline
- Buyer termination clause at current practice
- Relicensing of the buyer in a new state
- Niche market with limited buyers
One thing that every OD that owns a practice needs to understand: you WILL leave your practice at some point. The question is: will it be on your terms or someone else’s terms? If it’s on someone else’s terms, chances are those terms are not going to be in your best interest. Optometrists are notorious for wanting to work into their later years, but as you age the risk is higher you may encounter health issues and disability. You don’t want to be stuck with an asset that becomes suddenly worthless (or at best worth the equipment in the practice) because you are unable to serve patients.
You may encounter a difference between how long you want to work and when you can work. I say, let’s plan for the best and prepare for the worst.
Optometrists need to think about their practice just like they would any stock or mutual fund on a personal balance sheet. We fully admit it feels different because of the emotional connection you have to your business. But you can help reduce the risk of your overall personal retirement plan by preparing in advance for the eventual sale of your practice.
CONTACT PRACTICE ADVISORS
Now that you have read some basic tips and things to consider you are ready to sell your practice. After you have found a place that meets your needs you will still need to make on offer, secure financing, sign the practice sale agreement and lease, and complete the purchase. As you can see a lot of important factors go into this decision. Make sure you are being properly advised. Practice Advisors 360 is the nation’s leading dental advisory company. Contact us today at (844) 360-8360 or visit us online at practiceadvisors360.com