Selling your dental practice isn’t just a financial transaction—it’s personal.
You’ve spent years (maybe decades) building trust with your patients, growing your team, and creating something you’re proud of. So, when the time comes to sell, you want to ensure you’re doing it right. We’ve worked with hundreds of doctors through this exact process, and I can tell you the smoother transitions all had one thing in common: preparation.
If you’re considering selling in the next few years, here are five of the most important things to be aware of before starting the process.
1. Timing is Everything
You don’t have to be ready to retire to start planning your sale. The best time to start preparing is at least 2-5 years before you want to sell.
This gives you time to clean up your numbers, strengthen your systems, and position the practice to attract better buyers and stronger offers. If you wait until you’re burned out or in a rush, you may settle for less, both financially and emotionally. Start early so you are in control.
2. Know the True Value of Your Practice
Many doctors assume their practice is worth what they’ve heard others got for theirs—or worse, what they feel it should be worth. However, value is determined by several factors, including your collections, profitability, overhead, patient base, location, and even the age of your equipment and lease terms. A third-party valuation is a must. It gives you an objective, documented number you can stand behind when negotiating and can help you to find opportunities to boost value before listing. Practice Support Team and Burkhart regularly help offices to improve areas of the practice that boost value.
3. Financials Matter—Big Time
Buyers and banks will comb through your financials with a fine-tooth comb. So, if your books are a mess or you’ve been mixing personal expenses with business ones, it’s time to clean things up. They’ll want to see at least 3 years of profit and loss statements as well as tax returns for the business. For the current full year, they’ll want to see:
- Production and collection reports by provider
- Employee costs and benefits
- Lease or mortgage details
The better organized and cleaner your financials are, the more trust you’ll build with potential buyers—and the smoother your sale process will be.
4. Your Team Can Make or Break the Transition
One of the biggest concerns for buyers is whether the team will stay post-sale. You know your staff is the heart of the practice, but the buyer doesn’t—yet.
Ensure you have employment agreements in place, a culture that supports change, and clear communication as the sale progresses (timing on this is critical).
5. The Right Buyer Isn’t Always the Highest Offer
Money matters, of course. But selling to the wrong buyer can unravel everything you’ve built.
You want someone who respects your legacy, fits your patient philosophy, and can take care of your team. What’s their clinical style? Will they rebrand? How do they handle staff changes? DSOs will not accomplish this for you.
At KLAS Solutions, we help sellers vet buyers to make sure it’s a good fit, not just a good number. That’s how you protect your legacy.
Final Thought
Selling your dental practice is a huge decision, and it’s one you don’t have to make alone. With the right planning, team, and mindset, you can walk away from your practice proud of the chapter you’ve closed—and excited for what’s next.
If you’re thinking about selling in the next few years, contact Practice Support Team for support and get connected to a KLAS Solutions Transition Consultant. We’re here to help you plan, prepare, and transition on your terms.
Your success is our success. Please reach out to us anytime.
To learn more, visit the Practice Support Team page, email us at PracticeSupportTeam@BurkhartDental.com, or call 1.800.665.5323.
Category: Practice Consulting
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