Are You Ready for What Happens after the COVID Pandemic Experience?

Are You Ready for What Happens after the COVID Pandemic Experience?
Posted on 12/14/2020

Many dentists who practiced as associates in 2020 were furloughed or even lost their jobs. Although owners had to deal will difficult processes, I have heard that those who owned their practices during this time are glad they were owners because they had a job to go back to after the Pandemic Pause ended. As I write this, dentists are still experiencing the effects of slower hygiene production due to longer appointment times, having some patients in the practice who have lost their jobs and benefits, or patients choosing to wait until they can get vaccinated to return for recare treatment. But have you thought ahead to the time when the Pandemic is no longer controlling your ability to practice? Will you be ready?

If you were to consider the” boom economy” dentists experienced in 2019 and the beginning of 2020, could you be left behind? Once the operation of a “normal” dentistry practice is allowed to come back “online,” the volume and opportunity will mean welcoming growth and progress. As of the November 2, 2020 update from the American Dental Association, Health Policy Institute (HPI), 99% of the dentists reported they are back to work in their practices. The operating structure is still stressed, but with the vaccine now actually becoming available in the United States, it is expected that the experience of 2020 will become a thing of the past! Of course, there will be new procedures that dental practices will take forward but restricting patient care will not be one of them.

If you are considering selling a practice in 2021, this is an excellent time. The ADA predicts a much higher percentage of aging dentists will be retiring and selling over the next few years. This is not because these dentists are experiencing financial issues, actually the opposite. The reality is the baby boomer generation transition is finally ready to begin. Unlike the economic slowdown of 2008-2009 where dentists held onto their practices because they found themselves needing to earn back their lost retirement funding, the aging dentists of today still have strong retirement programs in 401Ks and other investments so they can move into retirement without the financial burdens of the past. This expected exodos will affect what is currently known as a “seller’s market.” A seller’s market is when there are fewer sellers than buyers. The dominance of supply and demand affects practice selling prices and the availability of buyers. This is a wonderful time for both sellers and buyers! Lenders are not providing loans on startups so a dentist with a strong practice to sell will greatly benefit from selling soon. In kind, a buyer who has been looking for that right practice will experience more options than in past years. A win/win for practice transitions!

We have seen a lot of shifts and changes over the last 20 years regarding the dental practice selling environment. We know how to guide you, protect your interest, stand up for what is fair and equitable and help you navigate what often seems impossible. If you are ready for what happens after the COVID Pandemic experience and looking to create an exist plan or a better future for you and your family, then do not hesitate to call us today! 303-973-2147!