Legacy Protection Plan
Legacy Practice Transitions saw a need in the dental industry, so we developed a solution. We noticed two specific issues, and both revolved around knowing the value of a dental practice. The dental market is always changing, and we realized that owners were in the dark about their practice’s current value unless they sought out a new evaluation each year. We also saw that many practices declined quickly in value if the owner were to become disabled or pass away. In such an urgent situation, no plan existed to protect the value of the practice if the owner could no longer operate the business. With these two dilemmas in mind, we created our Legacy Protection Plan (LPP). The LPP resolves two issues through one simple program.
The Legacy Protection Plan is designed to protect the value of your asset and the financial stability of your family by updating your practice evaluation every year at no additional cost once enrolled in the program. Should something happen and you are forced to stop working before your planned retirement due to serious illness, disability, or death, our program assures your estate there is a current plan in place that includes an up-to-date dental practice evaluation.
What is the Legacy Protection Plan?
Benefits of the Legacy Protection Plan
Knowing the present value of your dental practice allows you to make informed decisions regarding the direction of your practice. In addition to the peace of mind you’ll have about your financial situation, there are other benefits the LPP provides.
Stay Current On Your Practice’s Fair Market Value
The market can change significantly over the course of a year. Your Legacy consultant keeps a pulse on your local market and emerging national trends. Having this information working in tandem with the LPP annual update; you will always know your practice’s current fair market value.
For younger and mid-career doctors with visionary plans of expansion, this is a powerful tool! Tracking the value of your practice(s) as you merge, acquire, and grow is an invaluable resource as you consider your next career move.
For doctors preparing for retirement, the LPP can help you time your planned transition. For every practice owner, the Legacy Protection Plan operates as an ally both for expected life events and in case of unseen life changes.
Security and reduced stress for your family in the event of a catastrophic illness or death. Ask your LPT consultant about a codicil to your will for even additional protection.
Retirement & Financial Planning
Knowing your practice’s value is essential for financial and retirement planning. Planned retirement is the pinnacle for most doctors. Your dental practice might be one of your largest assets that act as a cornerstone in your retirement plan. Our consultants listen to your goals and work in conjunction with your financial advisors to develop a planned exit strategy in accordance with your desires.
Financial planning for expected life events like children, education, and geographic relocation are familiar planned events for most. However, practice owners face unique challenges when integrating an asset like a dental practice into a financial plan. If life goes according to plan, then everyone wins. Legacy Practice Transitions also supports your professional assets in case of unseen disruptions. In the event of an unexpected disability or death, your practice can be quickly presented to prospective buyers, so increasing the likelihood that your family receives the maximum market value.
If a solo dental practice owner dies while still practicing, the average value of a dental practice can decline by 10% per week. Dental practices that are not sold within 6 weeks will retain very little value. If your family is relying on the money from the sale of your dental practice, but they are not sure where to start, this could jeopardize the stability of your family’s financial situation. By having a recent dental practice evaluation and adding a codicil to your will, the plan to sell your dental practice can be implemented quickly so you’re still able to provide for your family.
Develop a Relationship with A Dental Consultant You Can Trust
In today’s evolving dental market, doctors are often approached by Dental Support Organizations (DSO), merger opportunities, and possible partnerships with other dentists. Knowing the value of your dental practice allows you to operate from an informed and educated position. Regardless of what inquiry or opportunity crosses your path, your trusted Legacy consultant is available to answer questions you may have and explain how it might impact your business. The Legacy Protection Plan is an accurate dental practice evaluation service advocating for you throughout the life of your practice.
Adjusted Fees When Selling Your Dental Practice
Legacy’s desire to partner with you throughout the course of your career is evident with our Legacy Protection Plan. Providing you with an annually updated dental practice evaluation as long as you own the practice is just one of the many benefits. For dental practice owners enrolled in the LPP, the cost of the plan is deducted from our usual fees when it is time to transition your dental practice. This demonstrates our commitment to maximizing the value of your practice from the first moment you partner with Legacy. Your legacy is our priority.
How Does Legacy Practice Transitions Evaluate My Dental Practice?
Legacy Practice Transitions specializes in fair practice evaluation methods. With a steady increase in dental professionals entering the workforce projected to continue through 2040 by the ADA, doctors exiting a practice should be securely positioned to attract eager buyers. Legacy Practice Transitions deploys our proprietary system that analyzes extensive practice management reports, financial data, geographic considerations, and some 25-30 other characteristics that influence practice values to arrive at a fair market price.
We begin our process by collecting data and information for the dental practice appraisal. We request that the owner complete a practice profile, submit 3 years of business tax returns, 3 years of financial statements or profit and loss statements, and approximately 10 office software reports that provide insight into the health of your practice. Some of these reports include but are not limited to, a fee schedule, procedure by provider, and demographics.
Once we are aware of the key factors that influence the value of your practice, we complete a Market Value Analysis. Our MVA consists of 25-30 indicators which are analyzed to arrive at a fair present value. The market value analysis considers the practice’s location, facility, tangible assets, practice maturity, the experience of staff, total receipts, net profitability, management systems, the composition of patients (fee for service, PPO, HMO, etc.), potential growth patterns, future earnings, referred procedures, and other factors that affect the value. Factoring in tangible assets and intangible assets takes an experienced consultant who knows the impact both have on the present value. Legacy consultants have decades of industry experience and understand how to arrive at a fair dental market evaluation.
There is no empirical formula when it comes to dental practice evaluations and each practice evaluator may have a different system. You may get a variety of different values for your practice because it is an educated estimate. Legacy Practice Transitions analysts have provided more than 2,000 dental practice evaluations over the past 30 years.
Talk to Legacy Practice Transitions Today To Learn More
Proactive financial planning should begin as soon as possible. No matter what career phase you are in, a dental practice occupies a unique owner-operator model that defies conventional retirement planning. In short, it’s never too early to plan for your future and a practice evaluation is key for dental practice owners. While planned retirement is the ideal goal, dramatic life changes including unexpected accidents may prevent you from working or alter your working life.
It’s always a smart idea to know your practice’s worth. Stay up to date with the changing economy and local competition by working with Legacy Practice Transitions on a comprehensive evaluation. The Legacy Protection Plan is an extraordinary value that can provide peace of mind and hope for your future career plans. Contact Legacy Practice Transitions today to learn more.