Building a dental practice from the group is no easy task. There are so many challenges you have to overcome. When it is time to sell the business, you want to make sure that all the work you put in pays off. Working with an experienced business broker for dentists Orange County is the key to guaranteeing you sell for maximum profit. You will also have to make several other considerations.
Know the real worth of your business
If you have no idea how valuable your business is, you will not be able to sell it for the best price. Keep in mind that buyers focus on solid data and not what you have to say about the business. Before you get it listed, ask your business broker for dentists Orange County to perform a business valuation. This will help you know the fair market value of your business. A business valuation will give answers to the following questions:
- What are your sales?
- How profitable is your business?
- What are the growth trends?
- What has been driving new sales and is that channel sustainable?
- What is your position in the market you serve?
- How reliant is the business owner?
- What systems and processes are in place?
Part of a business valuation process is to help determine the best selling price for your business. Buyers prefer the multiple of earnings method of business valuation.
What are your business strengths?
How much the right buyer pays will depend on return on investment (ROI) and relative risk. The lower the risk is, the higher the price you will get paid and vice versa. To sell for maximum profit, you need to identify what makes your business more valuable than your competitors. Mitigating risks will make your business more valuable. Consider doing the following:
- Have a team to take over your responsibilities so that the success of your business is not reliant on you
- Focus on a clean legal history
- Have predictable key drivers of new sales
- Focus on having a growing or stable customer base
- Document your processes and systems
- Focus on having a high percentage of repeat sales
- Have established suppliers and with backup suppliers in place
Sell at the right time
Third, you must time the sale accurately. Any business broker for dentists in Orange County will tell you the best time to sell for maximum profit is when your business is doing really well. The worst time to sell is when the business is failing and you have lost interest in running it.