#27: The Build-Up Weekly

*Welcome to the 27th edition of The Build-Up, where we deliver insights and inspiration for dentists on every stage of the private practice journey. If this email was forwarded to you, you can click here to subscribe.

Dear friends and colleagues,

I hope you’ve all had a great week and are looking forward to spending time with family and friends next week for Thanksgiving.

Here’s what I’ve got lined up:

• RESCHEDULED: Webinar on Wednesday the 29th

• A Very Brief History of the Thanksgiving Holiday in America

• 10 Quick Tips to Prepare for a Successful Sale

Let’s go!

Secrets to Retaining Current Patients While Attracting More New Patients

NEW DATE: Wednesday, November 29th @ 6 pm PT (8 pm CT / 9 pm ET) 

👉 There is Still Time to Register Here

Building and maintaining a successful dental practice is not only about attracting new patients but also about ensuring every patient - old and new - walks out with a smile.

Join us for an insightful webinar where we dive deep into the basis of dental practice success: the patient experience.

In this 1 hour webinar, you’ll learn:

• How Building a Great Patient Experience Can Be Your Most Effective Growth Tool

• Utilize Patient Testimonials and Reviews to Resonate with Potential Patients

• Front Office Strategies That Set The Tone for Lasting Patient Relationships

• Techniques to Ensure Your Practice Stands Out Authentically In a Competitive Landscape.

Plus, I’ll try to keep it fun. I’m not sure how many of these ideas are really ‘secrets’, but I do think I have some out-of-the-box ideas that can be super helpful in building that great patient experience. And bring your questions!

👉 Register Here

Plus, even if you can’t make the event, register anyway, and you can watch on demand!

A Very Brief History of Thanksgiving

I was recently reading Jon Meacham’s Abraham Lincoln biography, And There Was Light. As I read about Lincoln’s proclamation after the costly victory at Gettysburg, “invite[ing] my fellow citizens in every part of the United States, …to set apart and observe the last Thursday of November next, as a day of Thanksgiving,” it made me curious about the holiday.

Here is a brief history of Thanksgiving that I took from the National Park Service - perhaps you can pull something interesting to share at your meal this year.

1541: Francisco Vásquez de Coronado and the Teya Indians hold a feast in Palo Duro Canyon (Texas).

1621: The Pilgrims and the Wampanoag Indians hold a feast at Plymouth Colony (Massachusetts).

1777: All 13 Colonies hold thanksgiving celebrations.

1789: President George Washington declares November 26th, a national day of thanksgiving.

1815: President James Madison declares a national day of prayer and thanksgiving.

1827: Sarah Josepha Hale writes essays calling for an annual national celebration of thanksgiving.

1846: Mrs. Hale conducts a letter-writing campaign to make the last Thursday of November a national day of thanksgiving.

1863: President Lincoln issues a proclamation calling for the last Thursday of November to be set aside as a day of “Thanksgiving and Praise.”

1920: The first Thanksgiving parade is held in Philadelphia.

1922: The National Football League plays its first games on Thanksgiving Day

1924: The first Macy's Thanksgiving Day Parade is held in New York City.

1934: The National Football League holds its first game on Thanksgiving Day.

1941: After altering the date of Thanksgiving, President Franklin Roosevelt reestablishes the fourth Thursday of November as Thanksgiving Day.

1947: President Harry Truman pardons a turkey marked for Thanksgiving dinner at the White House.

I hope you all enjoy your own traditions next week and can take a moment to rest, relax, and give thanks for the many blessings we all enjoy.

And enjoy a good meal!

10 Steps to Prepare for a Successful Sale

I suppose that this is a practice sales newsletter, so let’s also include some relevant content!

Here are ten steps to prepare for a successful practice sale:

Build a long-term staff.

If your spouse works in the office or you have an assistant or office manager who plans to retire soon, work to replace them. A practice with a staff that plans to stay with the practice long term is more valuable to a potential buyer.

Maintain your production.

The fastest way to reduce the value of your practice is to do less dentistry. Lower production means lower collections which means potentially dramatically lower profit (because your fixed costs aren’t changing).

Check your lease.

You want a lease that can be transferred to a buyer (with the reasonable approval of the landlord) with at least 5 years remaining. The buyer will need a lease that lasts for the life of their loan - typically 10 years. Contact us if you need a lease review.

Clean up your AR and credit balances.

Address old accounts receivable and credit balances without scheduled production as soon as possible. I’ve been in the position where I’m trying to help a seller clean up AR in the weeks before a close date - avoid this if at all possible.

Don’t make major equipment purchases.

The key here is ROI - return on investment. It often takes years to recapture the value of a new piece of equipment, so it’s almost always a bad idea to make large investments in the year or two before a sale. (The exception to the rule here is digital x-rays.)

Do make minor cosmetic improvements.

If the carpet is old or the paint is peeling, it’s worth making an investment in the ‘curb appeal’ of your practice. It’s sometimes easier for buyers to picture themselves stepping into a recently refreshed office. You don’t need a full remodel (see point above), but a simple coat of paint can work wonders.

Separate your finances.

If you have multiple practices, ensure that you have separate bank accounts and financial statements for each practice. It is very difficult to market and sell a practice that has revenue or expenses co-mingled with another location.

Show your ‘personal’ expenses.

In the two years leading up to the sale, work with your accountant to make non-necessary expenses obvious. For example, a car lease generally has its own line item on your P&L. But if you’re making purchases that aren’t strictly necessary for the running of your practice and adding them to ‘office expenses’, be sure that you can easily break them out to show a buyer.

Make a plan for what comes next.

If you’re like many of our sellers, you’ve been a practice owner for years. Your patients recognize you around town, your team looks to you for leadership, and you are a trusted provider of a necessary service. It can be a tough transition into retirement, so start picturing that life now. Take up some new hobbies or look for volunteering opportunities now to make the transition easier on yourself.

Speak with a trusted advisor.

When it comes to retirement and tax planning, it’s important to know what your unique practice could likely sell for in today’s market. And there are more transition options available to doctors at every career stage today than ever before.

Your custom transition plan starts with a conversation with a qualified broker.

Get connected with your local Integrity Practice Sales broker here.

And with that, I hope you enjoyed the 27th edition of The Build-Up Weekly.

With best Thanksgiving wishes to you and your families,

Trevor Kimball, PhD

p.s. please consider using the link below to share our newsletter. 🙂 

These Six Mistakes Can Cost You Six Figures

Download our free guide “6 Mistakes to Avoid for a Successful Practice Sale” here. It’s material that I’ve covered in this newsletter before, but - if you’re contemplating a practice sale - the advice in this guide is crucial.

And if you’re ready to have a conversation with a practice sales professional, get connected with your local Integrity Practice Sales broker here.

It’s worth having a conversation, no matter your current transition plans.

You never know what you’ll discover together.