Does Your Dental Practice Have an Exit Strategy?
Does your dental practice have an exit strategy? Many do not. As a business consultant and financial advisor, I have learned many strategies to help business owners and their families navigate difficult decisions. One such decision is, “what am I going to do with my business?” “Should I keep it and pass it down to my heirs, or should I sell it?” This Keep/Sell scenario usually plays out before any planning is thought through and implemented. There never seems to be enough time; business owners are typically too busy running their day-to-day operations. In my experience, I have seen several business owners pass away or become totally disabled prior to any plan execution, leaving the family and employees scrambling to keep the business profitable. As the
American poet, Henry Wadsworth Longfellow, once said:
“Great is the art of the beginning, but greater is the art of the ending.”
I was recently in Nashville TN at a business conference where I was introduced to a gentleman and his process of helping General Dentists/Business Owners with the problem of practice value; that is: “how to increase their practice value.” I was intrigued by the process. He stated the possibility of growing the practice with the added dimension of creating an exit strategy for the dentist. I have experience in this area, as I had helped the majority shareholder of a Dermatology practice with a successful exit strategy; however, this process was unique.
The strategy and process of increasing dental practice/business wealth was developed by Matt Kennedy of Dental Impact. As both the COO of a multimillion-dollar dental practice and a published author on the subject, Matt has developed a process that is simple, transparent, and effective. Having spoken to several dentists in the tristate area, I know that they are often approached by both their dental association and independent financial advisors regarding numerous financial subjects. However, I urge all who are reading this to keep an open mind and set 15 minutes aside to hear about Matt’s value proposition. To a general dentist or business owner, that 15 minutes could put $5-7 million dollars back into one’s retirement.
His proven process begins with “The Efficiency Accelerator” in which he uses a “Profit Scorecard”. In other words, he analyzes the business’ Profit & Loss Statement (P&L) along with their Personal Balance Sheet to find money they may be losing. Typically, millions are recovered over one lifetime.
“The Capacity Builder” is another step within Matt’s process. Using the “8 Driver of Practice Value” as a guide and “The Dental Freedom Code” to measure progress, dentists and business owners can see and capture the untapped potential of their practice, enabling them to get out of the dental chair or office.
Instead of an Exit Strategy, they’ll have a practice/business Options Strategy. If the choice is made to sell, one can sell up to 10x the current value. They also have the option to keep the practice and enjoy the profits without all the work. Or, ultimately, the choice could be made to pass the business down as their legacy.
A dental practice or business will be one of the most valuable assets one owns. Matt’s approach demonstrates how to take the outflows and redirect them back into the business. This will create more wealth and security in one’s retirement.
*Claim your free copy of Matt’s book, “Designing Dental Wealth” by emailing firstname.lastname@example.org. Please provide your name, address, and phone number and a copy will be mailed to you.
JACOB Riloff, Chfc, Casl
Jacob is the Strategic Consultant at Victory Wealth Partners. In that capacity, he specializes in business development issues for closely held businesses and their owners. He is an expert in business succession planning, exit strategies and advanced insurance planning techniques. Jacob focuses on providing business owners with sound planning to increase shareholder value in their privately held businesses. He has over twenty years of experience as a business-planning advisor.