Timing Your Success: The Financial Implications of Selling Your Practice Today
The timing of the sale of your dental practice can profoundly impact your financial future and clinical legacy. We know the best time to sell is when you feel ready, both personally and professionally, and when you find a partner whose goals align with your own. And although many dentists have waited until retirement age before considering a transition solution, in today’s dynamic healthcare landscape, there are several compelling reasons to begin exploring your options sooner.
We spoke with Ben Willoughby, Vice President of Business Development at Apex Dental Partners, to shed light on how an early practice sale can bring substantial benefits to your professional and financial journey. In 2014, Willoughby took on the role of Apex’s first employee, where he guided the team as Director of Finance and Accounting. As a foundational member in the launching of Apex, Willoughby gained valuable insight in practice management. Now, in his current position, Willoughby excels in identifying exceptional doctors and practices to partner with the Apex family. He addresses a few of the overlooked financial benefits our partners have experienced post-transition.
Raise Your Take-Home Pay
One of the most compelling financial benefits of selling your practice earlier in your career is the potential for greater ongoing compensation. With an organization like Apex, you can find a partner who will assume the burdens of practice management, such as staffing, IT, marketing, etc. This transition allows you to dedicate more time to patient care, leading to higher production and lower costs due to more efficient systems.
“We allow our doctors to focus all their attention on their patients by utilizing our efficiency tools. This puts our clinicians in a position to grow more and earn more money through that growth. One of our partners, Dr. Avendanio is a great example of this. After 19 years of running his practice, the demands of management were overwhelming. As the result of an Apex partnership, his practice has been able to expand multiple times and increase his personal take-home pay in the process,” says Willoughby.
Selling your practice can also help you rid yourself of business debt– meaning more of your income can stay in your pocket today. Many dentists accumulate substantial loans to fund the growth and operation of their practice. By selling your practice, you have the opportunity to pay off these debts and free yourself from the weight of ongoing interest and repayment schedules. This can significantly improve your financial health, reduce stress, and provide a way to start your next chapter with a clean financial slate.
Reduce Your Liability
Another crucial financial consideration when selling your dental practice is reducing your liability. In traditional private practice, owners carry all financial responsibility and legal liabilities. This includes everything from malpractice insurance to tax obligations and business-related lawsuits.
Any partnership can significantly mitigate these risks, however the value in selecting the right partner cannot be overstated.
Some large organizations offer minority “ownership” when you sell your practice– meaning you retain 49% or less of decision making power, but keep a lifetime of liability. Apex offers a unique partnership opportunity where you can reinvest as much or as little of the sale of your practice into equity in our rapidly growing organization. With Apex, you can profit from the success of not just one practice but from the collective success of 40+ thriving practices.
Benefit from Profit Share & Limitless Financial Potential
When you partner with Apex, you will be eligible to participate in our profit share program. This program is designed to empower and reward all clinical leaders and is a testament o our commitment to fostering a collaborative and mutually beneficial partnership.
A mutually beneficial partnership brings more than just financial relief; it brings strategic alignment, shared goals, and a vision that complements your own. We can provide invaluable expertise, open doors to new opportunities, and offer a fresh perspective to in-office challenges. However, a poorly matched partnership can lead to conflicts, missed opportunities, and diverging from your intended goals.
In addition, Apex offers equity stake to owner dentists. This equity stake means that our dentists not only share in the financial returns of their individual practices but also have a vested interest in the growth and success of Apex as a whole. This financial incentive aligns your interests with the long-term success of the organization, providing financial motivation to excel in your role. As a result, our partners are more than just dentists; they’re integral stakeholders in a community that thrives on collaboration, unity, and a shared commitment to excellence.
“A good partnership is all about fit. There are hundreds of support options out there. Some doctors are going to be a match for us and some aren’t. It’s important that your potential partner shares your philosophies both personally and clinically. Make sure they’re the kind of people that you want to work with,” says Willoughby
Lead In Your Practice & Define Your Legacy
At Apex, we are dedicated to preserving your practice legacy. In our non-branded model, you retain your position as the face and leader of your practice for as long as you choose. As Willoughby put it, “A leader in the practice is a positive influence, a carrier of its unique culture, and a steady presence.” This continuity in leadership ensures that you can maintain your reputation within the community and continue to make crucial decisions about patient care. Increase your capacity for clinical excellence by focusing on the things that move your practice legacy forward.
Making the Decision to Sell
Deciding when to sell your practice is a significant and deeply personal choice. First, it’s essential to align this decision with your goals, whether you’re striving for a better work-life balance, professional growth, or a more secure financial future. Once you’ve clarified your objectives, don’t hesitate to reach out to us for a free practice appraisal.
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By choosing the right partner, selling your dental practice can be one of the most rewarding experiences of your professional career. At Apex Dental Partners, we work closely with you every step of the way to ensure you feel comfortable and confident you're making the best decision for your future.