Common Misconceptions About Dental Practice Sales

When it comes time to sell a dental practice, there are many myths and misconceptions that can create confusion or even lead to costly mistakes. Understanding what’s fact versus fiction is essential for making the right decisions. Below, we address some of the most common myths dentists believe when preparing for a transition.

“My practice is worth what I need for retirement.”

Many dentists assume that practice value is tied to their personal retirement needs. The reality is, value is determined by financial performance, patient base, location, and market—not personal financial goals. Get a formal practice appraisal to see how much your practice is worth right now, and work with a financial advisor to ensure you’re set up for a comfortable retirement.

“Corporate buyers always pay more than private buyers.”

It’s easy to think corporate buyers always outbid individuals. While we do often see higher valuations from corporate groups, this is not always true; many private buyers will pay competitively, especially for desirable practices.

“I’ll get the same value no matter when I sell.”

Some believe timing doesn’t affect value. The truth is, timing matters. Market conditions, interest rates, and practice performance leading up to the sale impact valuation.

“I don’t need to plan ahead—selling is quick and easy.”

Many assume selling a practice is a fast and simple process. However, transitions can take 6 to 12 months–or sometimes longer–and require preparation (financial cleanup, systems, staffing, patient retention, etc.). We recommend making a transition plan now and contacting a dental transitions advisor three to five years before you plan to sell.

“All buyers care about is my equipment and facility.”

Dentists often believe that buyers focus only on equipment when in fact, buyers primarily value patient base, cash flow and staff stability. Some small upgrades to your office, such as a fresh coat of paint or new carpet, can increase desirability. Modern equipment also helps, but we recommend you avoid making any major purchases shortly before you sell–especially if you have to take on new debt–as you likely won’t recoup those costs.

“Once I decide to sell, I’m done.”

Some think the process ends once they sign. In actuality, some sales include transition periods where the seller stays on for 6-24 months to help ensure patient and staff retention. If you sell to a DSO, expect to work back 3–5 years.

“My CPA can handle the entire sale.”

It’s common to think a CPA can manage the whole process. While CPAs are an important member of your team, dental-specialized brokers and advisors understand market nuances and can maximize the value of your asset.

“The highest offer is always the best offer.”

At first glance, the biggest number seems like the best deal. However, deal structure, tax implications, earn-outs, and buyer fit often matter more than headline price.

“Staff should know right away that I’m selling.”

Some dentists feel they should notify staff immediately. In reality, premature disclosure can cause instability; most sellers wait until the deal is nearly complete before informing staff.

“My practice will sell no matter what shape it’s in.”

It’s a common assumption that every practice will sell easily. However, practices with declining collections, poor systems, or low profitability may not attract qualified buyers—or will sell at a discount.

“If I sell to a DSO, they’ll change everything overnight.”

Many believe a DSO will make sweeping changes immediately. The reality is, many DSOs keep systems, staff, and branding intact for continuity, especially during the transition period.

“I can’t sell if I still have debt on the practice.”

Dentists often worry debt will prevent a sale. The truth is, buyers typically refinance or pay off practice loans at closing; debt rarely prevents a sale.

“All transitions look the same.”

Some assume all transitions follow the same path. In fact, options include associate buy-ins, mergers, private buyer sales, DSO sales, or phased transitions—each with different outcomes. A dental transitions advisor can help you determine which option is right for you.

“If I increase collections right before selling, my value skyrockets.”

It’s easy to think a quick increase in collections boosts value. The reality is, buyers look for consistent performance over several years, not short-term spikes.

“I’ll lose control of the process once I start.”

Some fear they will lose control after beginning. However, with the right advisors, the seller drives timing, deal terms, and transition planning.

Selling a dental practice is one of the most significant financial and professional decisions a dentist will make. By separating myths from reality, you can approach the process with clarity and confidence. The right preparation, the right timing, and the right advisors will help ensure a smooth and successful transition.

Contact Menlo Dental Transitions at info@menlotransitions.com or 490-290-7720 to discuss your dental practice sale.