Quality of Life... the ultimate goal of each and every dentist. What is it? Well, it’s different for every dentist but, basically, it can be described as doing dentistry because you want to, doing only those procedures you enjoy, and doing them only on those patients you wish to treat, and only when you want! This is also referred to as “freedom.” Most doctors would prefer to spend less time in the office (rather than more time).
It’s interesting to note how many doctors worry more about the fee they will pay for selling their dental practice than the net amount (after taxes) they will ultimately realize from the sale. We have seen doctors take fifty to sixty percent less than the actual value of their practice, and even others who walked away from their practice, just to avoid paying a fee for having it sold for them! The real question should be, of course, is how much money does a doctor lose by trying to sell his den
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First of all, the practice may be selling for $800,000 and that is reasonable number for most purchasers to consider when starting out in practice...
The most widely used method for determining practice value is fair market value. The commonly accepted definition of fair market value is the price which a professional practice would produce, allowing reasonable time to find a purchaser, with both buyer and seller having access to full disclosure of information about each other.
Sell now or build to sell? Sell for present value or sell for future value? Commit now, but defer the actual sale until later? Take cash or fund your pension plan with the value of your practice? These are just a few important considerations for a dentist who is thinking and planning for the future.
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