Selling a dental practice is a major decision that requires careful planning. Whether you’re preparing for retirement, relocating, or moving into a new career, avoiding common mistakes can help ensure a smooth transition and a successful sale.
Here are some key pitfalls to watch out for and how to avoid them.
1. Waiting Too Long to Prepare
Many dentists wait until they are ready to retire before thinking about selling. The problem? A successful sale takes time—often a year or more. The earlier you start planning, the better your chances of securing the right buyer at the right price.
Ideally, you should begin preparing at least three to five years in advance. This allows you to strengthen financials, upgrade equipment, and maintain patient retention, making your practice more appealing.
2. Setting the Wrong Price
One of the most common dental practice sale mistakes is misjudging the value of the business. Pricing it too high can discourage buyers, while pricing it too low means losing out on potential earnings.
A professional valuation helps ensure that your dental practice is competitively priced based on revenue, patient base, and market trends.
3. Letting Patient Numbers Decline
A steady patient base is essential for a successful sale. Some sellers cut back their hours or slow down production before selling, but this can make the practice appear less profitable.
Maintaining consistent patient flow reassures buyers that the practice is stable and thriving.
4. Poor Financial Recordkeeping
Serious buyers—and their lenders—will scrutinize your financial records. If your books are disorganized, missing tax returns, or showing inconsistent revenue, it can delay or even derail the sale.
Work with an accountant or financial advisor who specializes in dental practice transitions to ensure that your financials are accurate, transparent, and up to date.
5. Not Considering Buyer Financing
Even if a buyer is interested, securing financing can be challenging. Lenders evaluate your practice’s financial health before approving loans. If your records are not in order, or your revenue is inconsistent, financing may fall through. Proper preparation increases the chances of a seamless transaction.
6. Trying to Sell Without a Broker
Some dentists attempt to handle the sale themselves to save on broker fees. However, working with a dental practice broker can result in a better outcome.
Brokers help connect you with qualified buyers, negotiate terms, and manage the paperwork, making the process smoother and less stressful.
7. Overlooking Staff and Transition Planning
Your team is one of the most important parts of your dental practice’s success. Buyers want to know that staff will stay on after the sale, as sudden departures can disrupt operations. Thoughtful dental practice transition planning includes keeping key staff informed at the right time and ensuring a smooth handover.
8. Getting Emotionally Attached
A dental practice is more than just a business—it’s the result of years of dedication. However, letting emotions drive the sale can lead to unrealistic expectations or reluctance to negotiate.
Keeping a business-focused mindset and working with experienced professionals can help ensure a fair and efficient sale.
Thinking About Selling? We Can Help
Selling a dental practice doesn’t have to be overwhelming. With careful planning and expert guidance, you can avoid these dental practice sale mistakes and secure the best outcome. If you’re considering selling, our team at Consani Associates Ltd. is here to help. Give us a call today for a confidential consultation.
