5 Objectives to Improve the Value of Your Practice To Sell

You've got your professional team of experts in dental practice sales but do you know how to prepare your practice well in advance for sale to get the best result?  Consider these 5 objectives and strategies to improve your practice vitals. 

1. Improve the financial standing of the practice

Set financial goals which aim to ensure the practice’s financial position is at least stable.

This means there is good cash flow, few debts owing, expenses are in the normal range (industry standards), there is proper compensation to the owner and profit for the practice as well as an anticipated profit and growth in the near future to be attractive to a future buyer. 

Brokers and potential buyers will be looking at your financial documentation, so aim to have the financials under control at least 18 months to 2 years in advance.  Ensure your collection rate is at least 90% and have clear payment policies in place.  Embark on a collection campaign now to swiftly collect the outstanding money owing. 

Offer a third-party payment plan solution to patients with treatment plans over $500 to encourage commencing larger treatment plans sooner.

2. Develop marketplace exposure online

How much exposure (other than a practice website) does the practice have in the online market place to attract new patients or engage current patients?

The aim of this objective is to develop an active online presence in order to engage, entertain, reward and educate the existing patient base and to market to prospective patients. Ultimately this will assist in attracting new patients to the practice and keeping the practice front-and-centre in the minds of existing patients.

Having a current and active online presence will be attractive to a new buyer as it shows the practice is committed to marketing and promoting the practice to ensure future growth.

Positive feedback and favourable online reviews from current patients are essential in attracting prospective patients.

3. Improving the appointment schedule

The aim of this objective is to ensure the appointment book is scheduled to capacity in order to achieve the practice’s production goals.

Ensuring there are appropriate scheduling, follow-up of incomplete and delayed treatment and recall protocols in place will enable the practice to improve its financial performance.

Having an appointment book scheduled to capacity in the short-term and future appointments already scheduled for ongoing care will be highly attractive to potential buyers in terms of expected earnings, as is having protocols in place which proactively facilitate scheduling and growth.

Start a reactivation campaign to reappoint incomplete treatment and overdue hygiene patients.  Look back at the last 2 years. This is a good way to fill gaps in the schedule and to also reassess patients for comprehensive examinations and treatment planning.

4. Increase (adult) new patient numbers

An important factor in future growth is the ability to attract new patients, in particular the ‘target’ group(s) which account for the greatest amount of production in the practice and who also share core values.

The primary aim of these objectives is to identify the target group(s) and put in place strategies to attract them to the practice and to ensure productive, comprehensive treatment plans are developed (as appropriate), accepted and completed. Maintaining patient loyalty and ongoing care is just as important.

Secondary objectives are to attract other types of new patients to the practice and cater to emergency new patients who we aim to convert to new patient examinations.

5. Provide exceptional patient experience

One of the core objectives of truly successful dental practices is to provide an exceptional level of patient care and service. This is an integral objective to aim for as the majority of patients seek out dental practices who share this core value.

The aim of these objectives is to provide the patient with an exceptional experience from the first instance they come across your business (online activities and reviews) right through to beyond completing their treatment plan.

A high level of patient care and service improves the quality of their experience – be it more pleasant and personal than they expected - which increases patient satisfaction. The flow on effects of a happy customer are numerous but in particular, they are more likely to accept recommended treatment, refer family and friends, remain engaged and loyal and to leave favourable online reviews which all add to higher revenue and growth.

The end goal is to be the go-to practice in your area where patients can experience service and care found nowhere else.