North Texas Dentistry Volume 5 Issue 6 - Page 9

Planning Today is the Foundation of Future Success An accurate valuation of a dental practice is one of the most important and complex components of a transition. The fair market value of a dental practice is not equated using a simple equation or multiplier. A reliable practice valuation demands a comprehensive understanding of both the objective and subjective factors that comprise the value of a dental practice. Dr. Watson emphasizes that the practice valuation is not just a matter of examining the financial records of the practice. “A practice’s true value is composed of many factors, including the location, equipment, staff, patient base, and cash flow,” he notes. “Only when every facet of the practice is evaluated can you determine its fair market value.” The team at ADS Watson, Brown & Associates encourages dentists to begin planning far in advance of any transition to build a foundation for the best possible outcome. The first step in the planning process is to have your practice appraised. An in-depth analysis of your practice is key to determining whether you are well-positioned for a successful transition. Pre-transition planning can identify areas in the practice that need improvement and allow time to develop and implement strategies that enhance the value of the practice. You may be advised to attract new patients, adjust your fees, evaluate your office lease or real estate options, properly structure associate agreements, or evaluate staff salaries. Conducting an Photo by Ray Bryant, Bryant Studios By focusing on service, integrity, and advocacy, ADS Watson, Brown & Associates assures that your transition needs will be handled competently, equitably, and with your best interest as a central priority. evaluation early will help you determine the most favorable timeline for the transition and proceed with confidence. ADS Watson, Brown & Associates also helps clients with contingency planning for an unexpected death or disability. Pre-planning for an unexpected death or disability is a preventative measure to ensure that, in such an event, all facets of the sale of your practice will be handled expediently and efficiently to preserve the practice and maintain the practice value. This specific, step-by-step plan protects your family members from shouldering a difficult burden during a highly emotional time and ensures that such matters are being handled competently and according to your wishes. Allies in a Successful Transition You do not have to – and should not – manage the complexities of transition planning alone. There are clearly many considerations involved in total preparedness. However, the single most important step may be to select a team of professional planners known for integrity who are also market leaders with a proven track record in successful dental practice transitions. By focusing on service, integrity, and advocacy, ADS Watson, Brown & Associates assures that your transition needs will be handled competently, equitably, and with your best interest as a central priority. For more information, call ADS Watson, Brown & Associates at (469) 222-3200 or visit ADStexas.com. www.northtexasdentistry.com | NORTH TEXAS DENTISTRY 9