The temptation
You're thinking about selling. The chairs are tired, the X-ray is dated, the reception area hasn't changed since 2009. Upgrading feels like the obvious way to boost your price.
The catch
Invest a year or two before a sale and you likely won't get that capital back. A buyer will love the new equipment, and it may make your practice the more attractive option. But they rarely pay dollar for dollar for it. Your price is driven by goodwill and cash flow, not by the age of your chairs.
The result: you fund the upgrade, and the next owner enjoys it.
The 3 to 5 year rule
Planning big investments in technology, equipment or leasehold improvements? Make them at least 3 to 5 years before a sale. That gives you time to:
- Recover the capital through the production and efficiency it adds
- Enjoy it yourself. You paid for it. Practise on it.
- Prove the payoff in your numbers, which is what a buyer actually pays for
Fix what's broken and keep things safe and functional. Hold off on the big-ticket upgrades. Let the buyer choose their own technology.
Before you sign anything
If an exit is anywhere on your horizon, talk to us before a major purchase. A quick conversation can save you a six-figure decision that a buyer won't reimburse.
Weighing an upgrade? Let's talk it through →