7 Questions Every Dental Practice Needs To Consider
By Kenneth J. Polke, DDS, FAGD, DICOI
- What is my Exit Strategy?
This question should be addressed from the following 3 perspectives a) Estate Planning b) Transition Planning c) Practice Valuation Planning. Every Practioner should have an updated practice valuation to protect their loved ones from an unexpected emergency. Should an emergency arise a plan of action can be set in place automatically during your family’s time of mourning when time is of the essence. Next, every Doctor should plan for their retirement 10+ years out so best to increase the value of the practice, increase the “sale-ability” of the practice and to increase their retirement assets. Lastly, every Doctor discuss the Transition Process with a knowledgably Transition specialist to best lay the ground work for a smooth transaction with minimal hiccups.
- How do I Plan for an Emergency Scenario?
Much like the old 1970’s Bumper Sticker which so eloquently stated “SHIT HAPPENS”, no one is adequately prepared for an unexpected major illness, disability and/or other of life’s tragedies. We at Choice Transitions have developed just such a package plan (PPP) Practice Protection Plan at no cost to you the Doctor. For more information regarding our (PPP) please call me at 440-990-4700.
- What is My Practice Worth?
Knowing this helps to set the Asking price when it does come time to sell. Knowing this beforehand may be instrumental developing a game plan to increase the value of the Practice should the current valuation not meet expectations and retirement needs. Lastly, knowing this will help in Estate planning and /or Tax Planning. Perhaps buying Life Insurance can offset the tax burden upon the sale of the Practice.
- Do I Always Wish to be an Owner?
As the Owner Doctor you may reach a point in your career upon which you may wish to relinquish controls through the sale of your practice thereby relieving yourself of the duties and headaches. However, you may still wish to have contact and still treat the many friends of your practice you developed during the years. This scenario can be negotiated in the BUY-SELL AGREEMENT. You may and can consider this after retirement practicing as an inflation hedge also.
- Do I HAVE A Well Planned Financial Target?
It is imperative that you have an excellent financial advisor on your team. A financial goal and target is imperative so that you can retire out of WANT and NOT NEED. I come across so many Doctors who have not planned at all for this inevitable day!!!!!!!
- Will my Renter/Assosciate Doctor be a Problem when Liquidating?
As mentioned earlier in this article a sound financial advisor and Transition Specialist can make you aware of any and all landmines that you can step on when the Retirement Plan needs to be kicked into full throttle. Not having a written agreement with your Renter/Associate Doctor can be one such landmine. Your contract should be reviewed by your Transition Specialist.
- What Do I Do with My Building?
Do I wish to be a Landlord or do I wish to just walk off into the sunset of Retirement by making the Sale of my Practice and the sale of my building a package deal? Your Transition Specialist will need to know your Goals to assist you in achieving your Dream Retirement.