Many dental practices are growing more interested in the possibility of private equity. This isn’t surprising because many firms have been making large investments into healthcare and dental practices. If you are interested in potentially working with a private equity firm, how can you prepare your dental practice so that you get the best offer possible and are ready to act when the time is right?
Have a 3-5 Year Plan in Place
Every small business owner should have a 3-to-5-year plan at all times, and dental practices are no different. As you prepare your dental practice for private equity, consider where it fits with your goals for the future. The right time to work with a private equity firm will change from dental practice to dental practice. When learning about the opportunity, take time to see whether or not the goals of the private equity firm align with your personal endeavors.
Get Sell-Ready Even If You Are Taking Time to Prepare Your Dental Practice
You may entertain numerous private equity offers, so as you prepare your dental practice for private equity, it’s a good idea to make sure that you are sell-ready at all times. You never know when the right opportunity will arise, and you want your financials and practice to be in the best health possible. Keep your business financial documents prepared and accurate at all times. This is a good thing not only for private equity offers, but also in the event that you might want to bring in another investor, allow for associate buy-in, or complete other financial transactions.
Think About Consistency for Multiple Locations
Does your practice have multiple locations? In addition to taking time to prepare your dental practice, you will also need to prepare all of the other locations. Think critically about the viability of each of your locations and how consistent you are in delivering high-quality services. Are all of your practices similar? Are there certain things that make one more successful than the others? How do the finances vary across your practices? Any private equity group will ask many questions about not only your first location, but also any other locations that you offer services out of. Be prepared to speak on all of them.
APEX Reimbursement Specialists Is Here to Help Your Practice Grow
Whether you’re preparing for the recredentialing process or looking to explore automating your dental practice, APEX Reimbursement Specialists is here to help. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.