What we are currently dealing with reminds me so much of some of the words in Jimmy Buffett’s hit – “changes in latitude, changes in attitude, nothing remains quite the same”.
In talking with many of you, I notice quite a change in attitudes as you get ready to open back up. Having had about six weeks to really think about the future and getting ready to get back to your practice, where do you go from here? If retirement was in the near future or you were planning to cut back in hours and/or administrative duties (transition phase), how has that changed?
The first question for most will be what about practice values now and in the near future? At this time, it is still very much a sellers’ market as demand remains high. Strong practices that have weathered the storm should still command values close to those before the pandemic. The difficulty will be how to gauge the length of time it will take to be “back on track”. If production and collections return to the pre-virus level in 60 days, is that enough to conclude that the practice is “back on track”? Or will it take 90 days? Or 120 or more? With that to be determined, closings will easily be delayed until later in the year or into 2021. The due diligence period has a new meaning. In addition to reviewing past results, the “back on track” numbers present a new variable. To make it more interesting, with the new protocols, will you be able to keep up the numbers?
For those in the transition phase, it is important to keep you eye on the Supply and Demand curve. Thousands of dentists are in or nearing the transition phase so that today’s sellers’ market will likely transition as well. How fast is the big variable but it is sure that being early will have rewards – being late will have penalties. The bottom line: If you want to secure high value for your practice, this is the time to get cranking.
Needed – I currently have many buyers interested in practices in Sandy Springs, Dunwoody, Roswell, Alpharetta, Johns Creek, Suwanee, Sugar Hill and surrounding areas. Also, Loganville – Snellville area. Prospective candidates include practices that would sell and merge their patients and/or practice with another nearby and have several options as to term length and hours of work.
Buyers – Coming soon I will have available a general practice in Woodstock collecting $600,000 annually and another in Marietta collecting just over $700,000. I am collecting practice data currently – let me know of your interest in advance of these practices for sale announcements.
Call or email today – I will be honored to help you plan and reach your transition goals or help you find the practice(s) you wish to acquire.