The “Perio-Perspective”: Prepping Your Practice for the Finish Line
By Bob Septak, MBA
UPBA President & Broker
Transitioning out of a periodontal practice isn’t just about finding a successor; it’s about presenting a clinical and financial masterpiece. While first impressions and modern tech matter, one factor reigns supreme when it’s time to head to the closing table.
The “Basics” of Practice Prep
Before we dive in, let’s acknowledge the essential groundwork. To ensure a smooth transition, most specialists focus on:
- Aesthetic Refresh: Never underestimate the power of fresh paint and new carpet. First impressions set the tone for a buyer’s confidence.
- Purposeful Modernization: Buyers expect a digital, paperless workflow. However, be strategic—don’t invest in a brand-new $100k cone beam the year before you sell; you likely won’t see the ROI.
- Staff Stability: Long-term hygiene and surgical assistants are gold. Significant turnover right before a sale is a major red flag for “post-transition” risk.
- Full Throttle Production: Many specialists naturally slow down as retirement nears. Resist the urge. Keeping your foot on the accelerator ensures the practice is valued at its peak, not its plateau.
Top Priority: Your Financial Integrity
The most critical thing you can do is get your finances in order. Your bottom line is the single largest factor determining both the appraisal value and the bankability of the deal.
If a buyer’s bank doesn’t see a clean, profitable tax return, they won’t lend the money. Period.
Identifying “Value Leaks”
What your tax return says is rarely the “true” profit of your practice. We often see several factors artificially depressing the bottom line, which can inadvertently shave hundreds of thousands off your asking price:
- Over-Market Expenses: Lab fees, dental supplies, or facility costs that have crept above industry benchmarks.
- Discretionary Spending: Running personal travel, vehicles, or non-business items through the corporation.
- The “Family” Payroll: Paying non-working family members or over-compensating certain employees.
- Real Estate Discrepancies: Paying yourself a rent that is significantly higher than Fair Market Value (FMV) on a building you own.
Know Where You Stand
Don’t leave your legacy to chance. We specialize in identifying these “add-backs” to show a buyer (and their bank) the true earning potential of your life’s work.
Take advantage of our confidential, no-obligation financial analysis. We will help you understand exactly where you stand today and identify the specific levers you can pull to maximize your practice value before you hit the market.