Chong Yen says that he doesn’t recommend practice owners purchase new equipment or do renovations in the year before a sale. “Some people disagree with me on this,” he says. “But in my experience, sellers often don’t fully recoup their investment in renovations or equipment. I often use the analogy of installing a pool in your backyard; then the buyer of your home chooses to just fill it in.” Talking with an investment financial planner regularly throughout your dental career can make transitions easier. “You want to have a good idea of the way you want to live in your retirement years and how much it will cost, so you can plan accordingly,” Chong Yen says. When the time comes to sell, a team of professionals who specialize in handling dental practice purchase and sales is an important asset. “It’s something most dentists only do once, so it helps to have a team that has done it many times in your corner,” he says. Visit CDA Oasis to hear more from David Chong Yen on the values of dental practices: bit.ly/44OXa5p This article was prepared by David Chong Yen*, CPA, CA, CFP, Louise Wong*, CPA, CA, TEP, Basil Nicastri*, CPA, CA and Eugene Chu, CPA, CA of DCY Professional Corporation Chartered Professional Accountants (dcy.ca) who are tax specialists* and have been advising dentists for decades. Additional information can be obtained by phone (416) 510-8888, fax (416) 510-2699, or e-mail david@dcy.ca / louise@dcy.ca / basil@dcy.ca / eugene@dcy.ca This article is intended to present ideas and is not intended to replace professional advice. Influence of the Pandemic on Selling Prices of Canadian Dental Practices Time Period Average Selling Price* (compared to appraised value of dental practices in Canada) January 2020– March 2020 119% Pandemic begins in March 2020 March 2020– June 2020 No sales. Dental practices closed due to pandemic. Summer 2020– December 2020 104% January 2021– December 2021 108% January 2022– October 2022 110% October 2022 Interest rates rose. Investors’ ability to participate in the dental practice market decreased. January 2023 to present 106% * for transactions handled by DCY 33 Issue 5 | 2023 | SupportingYour Practice
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