Dental Cash Flow

Cash flow is the most important factor when selling your dental practice

When selling your dental practice, it is natural to think that having newer equipment will have a greater impact on your selling price than cash flow.

More than anything, a buyer wants to know that your practice is pumping out cash. You can achieve this by keeping your overhead and large purchases as limited as possible. As a seller, free cash flow is the best asset your business has.

If financing is involved, things such as the age of your dental equipment, how well it is maintained, the quality of your staff, and your reputation most often do not factor into the lender’s calculations.

As an example, while you and your patients may be fans of intraoral scanners, a lender simply views it as a way to take impressions to deliver dental services. That fancy and expensive scanner does not impress them when traditional impressions can still be taken.

If you are thinking about selling your dental practice, now is the time to start paying attention to every penny going out of the door and minimize it as much as possible. One way to accomplish this faster is to shift any personal expenses covered by the business off the businesses’ balance sheet and into your personal budget.

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