Now is the time Sell and Buy!

I WAS READY TO SELL, BUT…




By Mark Diekmann, D.D.S.



“My pension fund was totally destroyed in the recent stock market decline so I have decided that I need to continue practicing a few more years before I sell my practice!”



We wish we had just ten bucks for every time we have heard this excuse in past few years! We literally hear this from somewhere in the country almost everyday. But the real question is… are these dentists being wise or are they missing out on what may be the greatest opportunity of a lifetime?



Wise men find financial opportunity in both the good times and the bad times! It really boils down to having a positive attitude, a realistic perspective and, of course, a true and accurate understanding of your alternatives.



The first thing you need to understand is that selling and retiring are two separate events in your life and do not have to go hand in hand. In fact, it is frequently preferred that you don’t retire as soon as you sell. That is the basis of the PARAGON Presale Program. Selling and continuing to practice for as long as you desire is an option that so many doctors simply do not know exists. Your PARAGON consultant will be glad to share the details of the PARAGON Presale Program with you, but for now let’s just accept the fact that selling now and retiring later can easily be done.



So, is waiting to sell your practice because the stock market is down based on profitable logic or costly emotion? Once you know the facts, I think you will agree it is based solely on emotion!

 There are more seller-aged dentists in the profession today than at any other time in the history of American dentistry. This is due to two primary factors: a tremendous increase in dental school enrollment in the early 70’s and 80’s and the “baby boomer” phenomena.

 Even though there are far more seller-aged dentists today, there are far less dentists selling today than just two years ago. This is due almost solely from the stock market decline!

 The fair market value of your practice is based on supply and demand. Although it was anticipated that market values would be falling at this time due to a large influx of new dentists in the 80’s and the baby boomers reaching seller age, the reduction of selling dentists caused by the stock market decline has actually resulted in practice values reaching an all time high. It is simple economics! If you have the only practice for sale in an area where 5 buyers wish to own, your practice is worth a tremendous premium!

 Certain prime metropolitan areas and select rural markets have a current market mix whereby buyers out number sellers by as much as 10 to 1.

 The current market mix of sellers to buyers is artificial, based solely on emotional thoughts, and will rapidly turn around when logic once again prevails. The demographics of the dental profession reveal a ratio of 4.7 seller-aged dentists to 1 buyer-aged dentist. Compare this to PARAGON’s current national ratio of 6.3 buyers to 1 seller. This backwards situation is obviously temporary, not logical and will not last for long. Practice market values will begin to fall soon! It is inevitable!



So, aside from your practice being at peak market value TODAY, there is also another powerful economic factor working in your favor… that is if you act wisely and timely. The old adage of “buy low and sell high” has never been more applicable! TODAY you have the ability to receive a premium price for your practice and invest those proceeds when the market is at its lowest point in years (aren’t you suppose to buy when stock prices are low?). BUT if you wait until the market rebounds to sell, you are guaranteed to have many more sellers listed; forcing practice values down…an opportunity to invest far less proceeds in a much higher stock market. Please explain to us what is logical about that financial plan?



 Paragon, Inc. All rights reserved. For more information on this or other PARAGON articles contact PARAGON at 1.866.898.1867 or via email articles@paragon.us.com. Other articles are available for review on PARAGON’s website: www.paragon.us.com.