Three separate conversations recently with Principals who have attempted to sell their practices to corporates but have been politely turned away.
Why did they want to sell?
The usual story – acronym fatigue – GDC, CQC, GDPR, HR, UDA, UOA, FtP, etc. People, paperwork and politics.
Why were they declined?
Because a simple calculation revealed that, after they were paid as associates based on their own production, there was little or nothing for the corporate to buy (typically 80%+ of the turnover coming from Dr. Elvis and if he/she isn’t in the building, we are doomed).
Options?
- sell the practice to another Principal who wants to sit on your stool and see your patients. Problem – they are few and far between nowadays, as the noughties phenomenon of young dentists buying from old dentists has largely evaporated;
- embark upon a 3 to 5-year plan to reduce the Principal’s production as a percentage of gross revenue to somewhere down below 45% of total gross – and you might have the corporates back interested again (if the bubble hasn’t burst). A.K.A. build the practice with great marketing to build books for apprentice/salaried dentists and therapists;
- decide to create a business that you can fall back in love with. The stress that makes you want to jump ship now replaced by a self-managing dental business that you enjoy arriving in each day. A.K.A. great managers and systems.
As explained to those connecting with me, I can’t help with option #1 – the independent valuers might be able to.
I can help with options #2 and #3.
If you want to build a business that doesn’t depend so much on you and that self manages – I can help you to do that.
Email me for a complimentary phone or video call on coachbarrow@me.com
