Gary Kadi explains why dental practices without formal systems lose value to buyers. Acquirers assess how dependent the practice is on the owner, whether it runs without them, and if poor delegation prevents growth. Practices without documented processes are riskier and sell for less.
Chapters
Another really important thing that buyers are going to be looking for, specifically group buyers, roll ups, maybe even a DSO is going to be systems. You have to think about it this way. If someone's buying your practice and you're not going to be there eventually, how risky is that? Is everything revolving around you? Are you the main producer? Are you involved in all the administrative side of things? Are you having to be there in order for things to get done? Is there micromanaging happening? So. So systems is how you really show more value for your practice. Because heaven forbid something happened to you and obviously the reality is at some point you'll be transitioning out. How likely is that practice to succeed without you is what the buyers are going to be looking at, really? Making sure that you have processes your team follows without you is something that's going to be important. No systems equals the fact that you're not going to be able to scale, which equals the fact that value is going to be largely decreased.