The most prevalent dental transaction today is selling and walking away. This option offers a short-term transition, usually lasting a few months. The selling dentist receives all the money upfront upon closing, allowing for a clean break from the practice. It is an ideal choice for dentists seeking full retirement and aiming to minimize risk. However, if you prefer a gradual phase-out or desire to work part-time, this option may not be suitable.

While an associate buy-in was once common, it has been surpassed in recent years. With this option, you hire an associate with the intention of transitioning the practice to them after an agreed-upon timeframe. Ownership transfer is gradual, and money is received in future years. It's important to note that there is some risk involved, as dentists typically don't sign formal agreements, granting the associate freedom to pursue other directions at any time. Associate buy-ins work well for dentists who hold strong attachments to their patients, office, or community and wish to reduce hours while retaining control until retirement.

In a sell and work back arrangement, the dentist sells the practice entirely, receiving full payment at closing. However, they continue working for an agreed-upon salary and hours, gradually phasing out of the practice instead of an immediate break. This option suits dentists who have emotional connections with their patients, enjoy the clinical aspects of dentistry, or are not yet ready for full retirement but desire to scale back. Working back allows dentists to focus on patient care without the burden of management, financial, or non-clinical responsibilities. However, it's important to note that the new owner will make all business decisions, so it may not be suitable for those wanting to remain in control.

A relatively newer option is selling to a group or dental service organization (DSO). In this scenario, the dentist sells to the group or DSO, receiving a significant portion of the sale price upfront and the remainder at a later date, either in cash or stock options. The dentist is required to stay in a clinical role for an agreed-upon period, typically three to five years. This option works well for dentists seeking to reduce hours or transition into partial retirement gradually. It particularly benefits those tired of the business aspects of dentistry. Larger practices may find this option to be the most financially lucrative. Dentists desiring control, a quick exit, or immediate full payment should consider other alternatives. Generally, buyers in this category seek practices with a minimum annual collection of $800,000 and require the dentist to remain a key provider for several years.