Tips for Selling Your Dental Practice
Selling your dental practice is a huge milestone, but it requires a great deal of thought and planning. Regardless of whether you are pursuing a new venture, or about to retire, there are important tips that can help ensure a seamless transition. Below, our dental practice sales attorney explains what these are.
Obtain a Comprehensive Valuation of Your Practice
Before even listing your practice for sale, it is important to obtain a comprehensive valuation of the business. A professional valuation will consider factors such as annual revenue, patient base, and profit margins. According to the National Association of Practice Brokers (NAPB), dental practices with strong financials in 2024 sold for an average of 65 to 75 percent of their annual profits. An accurate valuation will ensure you ask for a fair price that is attractive to potential buyers while maximizing your return.
When valuing your business, also remember to value the equipment you use. If your X-ray machines and dental chairs are outdated but included in the sale, purchasing new can increase the value of your practice.
Prepare the Space
When selling your dental practice, creating a good first impression is critical. Ensure that your office and all treatment rooms are welcoming, organized, and clean. Simple upgrades, such as repairing or replacing furniture or repainting, can greatly improve the perception of your practice to potential buyers. Buyers today are looking for modern technology such as electronic health records, digital workflows, and advanced imaging systems.
Understand 2025 Buyer Expectations
The dental practice market evolves every year. In 2025, buyers are putting more focus on the following:
- Practices with regular cash flow
- Practices in moderately-sized or growing communities
- Growth potential, such as offering specialty services
If your practice offers specialized services such as cosmetic or sedation dentistry, it is important to highlight these treatments in your marketing materials.
Plan for Transition
You may be planning to make the sale and then walk away from the practice, but this may not intrigue some buyers. Instead, plan to help with onboarding for at least a couple of months to help the buyer in their new role. During this period, it can also be helpful to retain staff members to increase the buyer’s confidence in their investment.
Document Financial Stability
Transparent and detailed financial records are critical when trying to secure a successful sale of your dental practice. Be prepared with at least three years of your previous tax returns, profit and loss statements, and patient volume information. Potential buyers want to know that the practice will continue to generate revenue.
Call us for a free consultation for your Dental Practice Transition.
Selling your dental practice is both a personal and professional journey. While it is an exciting time, you also want the sale to be successful. By focusing on office preparation, valuation, and showcasing your business to buyers, you can ensure that the transition is a smooth one. Our dental transition attorneys at AGS Law can help you do it. Call us now at 801-477-6144 or contact us online to schedule a consultation and to learn more about how we can help with your dental practice sale.
