This is a question that we get fairly often from our clients and customers. Fortunately, with interest rates as low as they are today (we see rates in the high 6’s and low 7’s commonly), there can be some real benefit to completing the process. After analyzing the numbers, which will include closing costs that you have to pay, if the savings give you a good return on those costs, you should consider this strategy.

The next question you should ask is “What can I do with the extra cash flow?”
While it may be tempting to buy that boat or car you have had your eye on, we recommend that you utilize the funds to improve the value of your practice. Since that value is heavily tied to the net income that it produces, maybe you should consider beefing up your marketing efforts in order to increase your new patient flow. Hiring a management consultant to review your operations may yield some significant revenue opportunities as well. Updating your office décor and equipment can also help to improve your practice value, especially if you are 3 to 5 years away from transitioning your practice.

You will need to gather the appropriate information for the lenders to analyze the value of your practice. We can help compile that information and closely work with your lender to get the most favorable terms for you. We can also help you analyze the costs and benefits of refinancing, especially as it relates to your long term transition plans.

By: Patrick Johnston, MHA

For more information about how to maximize the value of a
dental practice for sale
as the owner nears retirement age go to http://www.dental-sales.com