Healthcare, Education & Personal Services · Seller readiness

Selling a Dental Practice business

Published · Reviewed by The Diligence Standard Team · Updated

A dentist preparing to sell should separate owner production from enterprise earnings, document patient retention, hygiene, payer mix, staff and equipment, and plan transition timing.

How the business works

Provider production, hygiene base, patient retention, payer mix, staff continuity, equipment and real estate determine transferable value.

Issues to resolve

  • Owner compensation is not normalized correctly
  • Active patient file is overstated
  • Equipment condition is underdocumented
  • Transition plan is vague
  • Staff retention risk is ignored

Evidence to request and reconcile

  • Provider production/collections
  • Active patient and recall reports
  • Hygiene schedule
  • Payer mix
  • Staff payroll/tenure
  • Equipment and lease/property records

Decision questions

  • How much cash flow remains after paying market compensation for the seller’s clinical work?
  • How many patients are truly active?
  • What retention is realistic after transition?
  • What equipment or buildout needs capital?
  • Which staff members are essential to patient continuity?