Like him or not, Kevin O’Leary has said the most significant differentiator he identifies between effective business people and those that struggle is that the successful ones are able to distinguish the signal from the noise. This has relevance to all the noise out there in dentistry right now.
The slight drop in interest rates and buzz around the CDCP have many suggesting you “act now” and sell your practice or you’ll have regrets. Most of these suggestions come from industry professionals whose income is primarily generated by the proceeds of a practice sale. As a business whose primary source of revenue come from creating processes and building strategies that maximize current and future profit for dentists, my take on the idea of selling based on the noise is that it’s a mistake.
Selling your practice has nothing to do with anyone other than you. To even consider selling and retaining your sanity after divesting yourself of ownership, two specific details need to be defined:
1. Define what life looks like on the other side of ownership with respect to
a. the NET financial outcome and future income requirements,
b. the transition you would be looking for, and
c. WHO you want to take over the legacy you have built.
2. What freedom does selling need to give you? How much time do you need back in your life when you step out of ownership and how will you fill that time? If you’re not sure, then don’t sell. Sitting on the couch “recovering” from ownership burnout gets old quickly. Who do you want to be when you sell? What professional contributions are you ready to explore? What personal goals do you have that you need more freedom explore?
Interest rates, opinions, “special buyers”, and timing are the noise. The signal to sell your practice comes from the same motivation, feeling, and intent inside you that made you want to buy a practice (or build one) when you did. Listen to others and you’ll have regrets. Listen to yourself, and you’ll find clarity. And if that “offer you cannot refuse” lands on your desk, make sure you have the answers to the questions above so you can confidently decide if you are going to sign it or shred it.
Remember, it’s not the sale price that matters. It’s the amount of that you put in your bank account. Top line sale price without considering the right corporate structure to maximize capital gains, ensuring the lease is stable, and your practice operations demonstrate opportunity more than risk is what gets you top dollar.
If you want help distinguishing the signal from the noise, we have effective processes that can do that for you. Reach out to Practice Advocate if defining the signal and building a strategy can support you.
