7 Things to Consider When Preparing to Sell Your Dental Lab

Dental Lab Products, Dental Lab Products February 2022, Volume 44, Issue 1

Before putting out the For Sale sign make sure to have a plan.

Whether you’re ready to retire, want to transition from owner to another role in the lab, or are passing down the business to the next generation, there are a number of things you must think about.

  1. Value
    Many factors determine what a lab is worth, including revenue, operating expenses, capital investment, obligations to employees, even inventory.
  2. Technology and Equipment
    Although this forms part of the lab’s value, it can also make the lab more or less attractive. A profitable but low-tech lab may be less enticing than one with less revenue but state-of-the-art technology. And it’s not only the equipment that matters, but also how it was purchased and whether money is owed on it. In some cases, paying off the balance on a key piece of equipment can increase the lab’s value.
  3. Real Estate
    This also determines value, but consider whether—if you own the premises—you want to remain as the landlord. If you rent the space, this expense may complicate the sale and thus must be reviewed.
  4. Employees
    If you have staff, it’s important to tell them about a potential sale and consider how it might affect them. Your ideal buyer may be on your payroll, which can make for a great transition
  5. Customers
    Preparing your customers for the changeover and helping the new owner establish relationships with them can facilitate the sale.
  6. Legacy
    Does your business offer value to the community? Does the brand name mean something? If you want the lab’s reputation to survive, you must discuss this early in the sales process.
  7. Your Future
    Finally, if you want to continue on in a new role as an employee at the lab for a time following the sale, this is a key detail that can enhance the value of your business.