PM
TRANSITIONS
Let me start by clarifying what I mean by your “endgame”. This is the term that I
use for creating an exit strategy. And knowing that this is one of the most critical
decisions that a practice owner faces throughout their entire career.
I have spent the last six years in the business of acquiring practices which has given
me great insight into exit strategies. It’s rare that I have found anyone who has
planned their exit strategy so well that they were able to fully maximize the wealth
from the practice that they have been working on through their entire career.
When you think about maximizing your wealth, most people will think of the simple
ones like cash, stocks, bonds, and real estate. But as Dentists, we hold an asset – our
practice – and at some point, will need to convert that into one of these other assets.
And that is what I want to talk about today.
How Do You Set Up YOUR Practice So That You End Up With The Most Cash,
Stocks and Bonds?
When I counsel Dentists on their endgame strategies, I start by asking one question,
“How engaged do you want to be from today until the day you retire?” And the reason
I ask that, is because it has a huge impact on the model for exiting that will make
the most sense for them.
The amount of wealth that you get out of your practice at your exit really depends
on the level of engagement you want to have from now until the end. There are six
Endgame Models that we should look at.
Endgame Model #1: Abandonment
Abandonment means you keep working… just a little less and a little less each day.
The practice is doing less and less. It’s earning less and less. Dentistry becomes
more of a hobby than a job, until you come to the point where you just quit, and you
close the practice.
46 TPDMAG.COM | SPRING 2019
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