Ready to Market or Not? | Dental Practice Sales Maryland
Dental Practice Sales & Transitions
If you have been considering selling your dental practice and are curious about how it would appeal to potential buyers, you need to study your key performance indicators.
Dental brokers know that the success of marketing a dental practice for sale depends largely on its performance. It is difficult to market a practice that many buyers would not see as a profitable investment. The overall success of a dental practice is measured by tracking your key performance indicators. Every practice is unique, and therefore not all indicators will be the same for each practice, but we will share some of the most common key performance indicators most dental brokerage firms suggest below.
- Profitability: It is your gross profit margin, and a simple equation to calculate this is (revenue-cost)/revenue x100. When determining your profitability, you should also consider any additional costs related to overall business expenses.
- Patient conversion rate: Your new patient conversion rate relates to how many of your new patient calls become existing patients. It is calculated by dividing your total number of new patients by the number of new patient inquiries.
- Cancellations or missed appointments: Believe it or not, this affects your overall profitability. During a regularly scheduled, fully staffed business day, each time a patient misses an appointment, it reduces your daily profit. It is important to have a good tracking system in place as well as properly train staff to minimize missed appointments.
- Patient retention: tracking the number of hygiene patients who schedule their next appointment will be a reflection of the success of your practice. You can have a continuous flow of new patients, but if you are not retaining those patients, it minimizes your overall growth capability and directly affects your success.
The process of selling your dental practice is not as simple as selling your home. You can’t just make some minor repairs to make it look presentable. A buyer is more likely to purchase a successful practice, which will give them a better chance of return on their investment. Your key performance indicators will be a direct reflection of your success and, with positive results, will appeal to a better market. Having good numbers will make your practice easier to market to potential buyers.
If you are considering selling your dental practice soon, a dental broker can help you evaluate whether your practice is in a position to yield a positive return. Measuring your key performance indicators will give you better insight into whether your dental practice is ready for an easy and successful sale. The best return on investment is a successful one. Contact our Baltimore Dental Brokerage office to discuss your options.