What is the big gamble? What could go wrong if I wait one more year?
Most of the dentists and professionals I talk to agree that taxes will likely increase over and over again for many years to come in order to pay for our current administration’s excessive spending. Regardless of your political affiliation, government spending is not going down anytime soon. Neither is our national debt. Therefore, in a higher tax environment, many dentists will have to produce more revenue in order to bring home the same dollars if they had sold their practice today. If capital gains rates increase, the ripple in the dental market will be felt overnight.
Almost every day you see a new commercial dental office being constructed in your area. If not, believe me: they are coming. Go online and read about the many commercial and discount dental offices that are sending out “coupons” to patients located in your neighborhood. Increased competition from corporations and new dentists in your area usually results in lower fees, fewer new patients, and diminished practice value. The good old days of patient loyalty to a dentist are sadly changing. Now loyalty is to the best price and insurance plan.
The Big Gamble
If you are considering selling your dental practice, but you think waiting a year or two will provide a better scenario to sell, maybe it’s time to discuss the retirement asset you have worked so hard to build. Don’t worry, selling does not mean you have to quit dentistry and walk away. Just a change in your role until you are ready to retire. I’m not a gambling man by nature. But if I had to bet on higher taxes and increased competition for you next year, I’d double down.