Transition Your Dental Practice on Your Terms

As the owner of a dental practice, you choose who to hire, which clinical techniques to implement, and how to market your services. You also decide when to sell your practice. At Menlo Dental Transitions, we want you to transition on your terms. Here are a few things to keep in mind about your future practice sale:

Give Yourself Plenty of Time

As a dentist, you may wonder how far in advance you should consider your dental transition. Many factors can affect that decision: your ideal age for retirement, the current dental transitions market, and who you want to help with the process. We recommend you start preparing for your transition three years before you actually plan to sell. We also advocate for hiring an experienced practice broker to assist in the sale; non-brokered practice sales fall through or are seriously delayed about 90 percent of the time.

By giving yourself plenty of time, you will be able to transition on your terms. Dentists who wait until the last minute may have their transition go much less smoothly.

Evaluate Your Selling Options

Many dentists equate selling their practices with retirement, but that may not always be the case. You have multiple options for transitioning your practice that include continuing to provide clinical care:

• Associate Buy-In: This selling option is a gradual transition of ownership to an associate, which benefits doctors who want to cut back on hours but still have control of the practice until retirement.

• Sell and Work Back: In this scenario, the dentist sells the practice but continues to work for an agreed upon salary and schedule. Dentists who choose this option shift management, personnel and administrative responsibilities to the new owner and spend the remaining years of their career focusing on providing patient care.

• Group or DSO Sell: Dentists who sell to groups or DSOs receive a large percentage of the sales price up front. They remain in a clinical role for two to five years and then receive the remainder of their payout upon their exit. 

Of course, if you are ready for retirement, you can sell your practice and walk away following closing. 

Select Your Ideal Buyer

As a practice owner, you have spent years building trust with your patients and employees, so you will want to find the right buyer to continue your legacy. You will want to choose someone whose skill level and personality will be a good fit for your practice. Your practice broker can also help you evaluate potential buyers’ financials and negotiate a fair sales price for your business.

By planning ahead, you will be able to transition on your terms and reach your goals for retirement. Menlo Dental Transitions can help you develop a transition plan, so you can maximize the value of your practice when the time comes. With our extensive buyer network, our team of experts can help you find your ideal buyer, so you can transition at your pace and on your schedule. Contact us today to get started.