Are you within five years of retirement?
In a perfect world, we start counseling oral surgeons five years before retirement to plan for the different options available to them. Alas, the world is not always perfect and many surgeons come to use a year or two before retirement asking for our assistance. Unfortunately, some surgeons have to retire quickly due to health or other personal concerns. In all cases, we work with the surgeon to develop a plan regarding their practice that takes into account their uniquely personal concerns, as well as the financial considerations in selling their practice given a long or short runway.
Retirement planning transitions come in different shapes and sizes. Some solo practice owners are willing to sell the practice now and work for the buyer for a period of time. Other solo practice owners want to sell and stop seeing patients immediately after the practice is sold. Oral surgery partnerships might have a partner retiring and a new partner who is presently an associate. Partnership transition planning is highly complex and requires a sensitive balancing of interests of the partnership, the partners and the departing and entering partners. We work on all types of practice transitions from the most basic to the most complex partnership restructuring.
One thing we tell all of our clients who might be retiring in the next few years is to keep “THE PETAL TO THE METAL.” Practice owners who gradually reduce hours or let their referral network go stale have practices with reduced revenues. Practices with reduced revenues, even those practices that still have seven figure collections, are unattractive to potential buyers because downward financial metrics are a sign of a tired practice. Such impressions might be totally unfair, but impressions matter and you do not want to give such an impression unless forced to do so for serious health or other personal reasons.