Selling a Dental Practice

USDT understands you have unique goals and requirements for the sale of your dental practice.
Our process minimizes the time you need to take away from practicing dentistry while selling your business.

Consult the Experts

Preparing to Sell a Dental Practice

Before selling your dental practice, there are a few factors to consider that will help USDT package and market your practice. Our experienced advisors will work closely with you to determine your goals for the sale to ensure a smooth transition for you, your staff, and your patients.

  • Productivity Trend When Selling a Dentistry PracticePractice Productivity Trend
  • Number of Dental Offices Nearby for Selling a Dental PracticeNumber of Dental Offices Nearby
  • Transferability of Selling Dentist OfficeTransferability
  • Sell Dental Office Years in PracticeYears in Practice in the Area/Location
 

FAQs on Selling a Dental Practice

How long does it take to sell a dental practice?

It can take anywhere from several months or even up to several years to sell a dental practice. Some factors that determine how long it takes to sell a practice include its condition, location, price, and the number of dental operatories. The more desirable the practice, the faster it will sell.

How can I sell a dental practice quickly?

Dental practices sell fastest when sellers start early, set realistic expectations about the value of their practice, and keep all equipment and facilities up to date. The best way for you sell a dental practice quickly is to contact a dental practice transition advisor.

How much can you sell a dental practice for?

How much you can sell a dental practice for depends significantly on the valuation method used and the current market. Selling prices are also influenced by the number of dental operatories, as well as the location and condition of the building and equipment.

Is it possible to sell portions of my dental practice?

Yes, but you should only consider this if your practice is large enough to support more than one doctor, and that your internal growth potential is at least between 30%-50%. If you are unsure of your practice’s internal growth potential, you should contact a dental practice transitions consultant to get an in-office analysis.

What are the tax implications or consequences of selling a dental practice?

You should expect to pay both federal and state income taxes on the gain of selling your practice, which is calculated as the difference between the sale price and the tax basis in the sold property. Tax basis is the amount of your capital investment in the property for tax purposes, specifically.

If your practice is listed as a Regular “C Corporation”, all income from the sale is taxed at the federal corporate rate of 34-35% for income greater than $335k/year. However, if your practice was set up as a regular partnership (LLC or LLP) or a sole proprietorship (“S Corporation”), a sale means both ordinary and capital gains are paid by the owners on their personal income tax returns.

For practices sold in states with no state income taxes (Florida, Tennessee, Texas), there is no state tax implication.

What are dental practice valuation methods?

Valuation methods include rule of thumb, market approach, and cap rate. Each dental practice valuation method uses different factors to determine an estimated value, and one method might be better than the next based on your specific practice.

  • Rule of Thumb is a great starting place to get an idea about what your practice is worth. Rule of thumb uses past and future market trends to provide a wider perspective on the dental practice valuation process.
  • Market Approach assesses major market factors including location, profitability, selling financing, and equipment age.
  • Cap Rate Method relies on a valuation of the risk factors that go into investing in a dental practice versus other investments.
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  • Start Here
  • Seller Contacts USDT
  • On-site Visit
  • Valuation Process
  • Co-Author & Advertising
  • NDA for Potential Buyer
  • Location Tour & Buyer/Seller
    Introduction
  • Closing & Transitioning

USDT ROADMAP
TO SUCCESS

Guiding Your Transition

Selling your dental practice is a life-changing, emotional event, and the process isn't as simple as posting a "For Sale" sign. The experts at USDT have 20+ years of experience guiding dentists through the complexities of selling their practices. Learn about our process.

Seller Contacts USDT

Initial information is gathered from the seller so we know which Transition Advisor to assign. The Advisor schedules a 30-minute consultation to discuss market conditions, what the doctor can expect the value of their practice to be, and what to expect after the sale. We will send the doctor a valuation packet and a sample listing agreement. This will prepare the doctor for the on-site visit.

On-site Visit

The on-site visit allows the doctor and the Transition Advisor an opportunity to meet so that the Advisor can tour the office, take photos of the practice, answer any questions the doctor may have, and discuss and review the practice valuation packet. This is an important time for the doctor to explain their treatment and practice philosophy, as well as staff management.

Valuation Process

US Dental Transitions requires a signed listing agreement and a completed Practice Valuation Data Packet, 3 years of Tax Returns, and Production by Procedure Code reports. Once we receive this information, it will take approximately 10 days to complete the core components of the practice valuation.

Co-author & Advertising

Your Transition Advisor will draft the advertisement and you will approve the ad prior to it being published. Ads are published on approximately 10 sites/journals. In addition, we will contact doctors who have previously requested information for the area via email, phone calls, and other marketing efforts. We have a database of over 100,000 dentists and we have the ability to contact 5,000 dentists at one time.

NDA for Potential Buyer

All buyers are required to sign a non-disclosure agreement prior to seeing any practice data. Buyers need bank pre-approval prior to meeting the seller.

Location Tour & Buyer/Seller Introduction

The buyer will tour the office and discuss practice philosophy with the seller. If the buyer is interested, a Letter of Intent (LOI) is created and presented to the seller. If the LOI is accepted, the buyer’s due diligence period begins. Simultaneously, there is a contract term agreement, formal bank approval, and other steps to close the sale.

Closing & Transitioning

Every practice transition is different, so your Transition Advisor will work with you to make recommendations based on your specific situation. Your Advisor will guide you through this process with suggestions on how to build relationships with staff and patients.

Learn what steps you should take to prepare for selling a dental practice!
Check out our dental practice sellers’ checklist!

View Sellers Checklist
  View Dental Practices For Sale
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