Q. I have been thinking of possibly selling my Practice for a few years now but have been holding off due to the decline in the value of my retirement savings accounts and the uncertainty with the economy. Do you think now is a good time to move forward with a sales strategy?
A. Think of this situation similar to home sales in recent years. Several homeowners who wanted to sell had been “waiting it out” due to declining home prices. Then when it seemed as if prices had stabilized and the government provided home buying tax credit incentives, there was an onslaught of houses for sale throughout the country. Despite
the recovering economy and the tax credits for buyers, home prices continued to decline due to the high inventory level of houses for sale.
It might be a wise idea to seriously consider selling the Practice now before the mad rush of delayed sellers enters the marketplace and increased supply forces prices downward. And with the baby boomer generation approaching retirement age, the amount of dental practices for sale is most likely on the rise in the near future. However, many factors affect the value of a Practice and your personal circumstances should dictate when you should sell. Please consult with a dental practice broker or your CPA on when a good time would be for you.