Am I Ready to Sell My Dental Practice?
Dentistry can be an incredibly rewarding field, but it is also a demanding one. Many dentists experience burnout from trying to keep up with the fast-paced demands of running a dental practice.
Eventually, it can all become too much, and many dentists begin exploring an exit from the profession. Even if burnout isn’t a driving factor, you may still be ready to leave dentistry behind. Everything from retirement to new career opportunities could be on the horizon for you. If you’re contemplating this transition, it’s critical to determine whether you’re truly ready to sell your dental practice.
Triumphant Partners has years of experience helping dentists sell their practices and transition into the next phase of their lives—whatever that may be. Over the years, we’ve learned a lot and have put together some key questions to help you decide if you’re ready to sell your dental practice. Read on to learn more!
Do I Know My Goals?
Before you begin preparing to sell your dental practice, we recommend sitting down and evaluating your goals.
This might sound obvious, but it’s a vital part of the process. Your vision for life after dentistry will determine how you approach the market.
- Do you want to sell your practice immediately and exit as soon as possible?
- Are you looking to outsource the operational side but stay on as a clinician? If so, for how long?
Understanding your goals will guide every decision moving forward. Certain dental support organizations (DSOs) are more flexible on specific terms than others, so the clearer you are about your goals, the better you’ll be able to find the right fit and use your time wisely when meeting with potential DSO or DPO partners.
Do I Know My Practice Value?
If you don’t truly know the value of your dental practice, you aren’t fully prepared to sell it. Fortunately, this can be addressed fairly easily, but it’s essential to understand both your current and projected value. Knowing your worth is a foundational element of the sales process and makes everything that follows significantly easier.
Many dentists rely on a rough estimate of their practice’s value and assume it’s sufficient, but this can be a costly mistake.
Even if you think you know your sale price, your sale cycle will go much more smoothly if you have a professional valuation in hand. Rough guesses, online formulas, and rules of thumb simply aren’t enough.
We strongly recommend focusing on your EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization.
This financial formula simplifies all elements of your practice down to its core profitability. No two practices are identical; variations in patient base, market conditions, tax implications, and assets all complicate the valuation process. EBITDA allows you to normalize these differences and focus on profitability, making it easier to accurately assess and compare practice values.
Do I Have a Qualified Dental Broker?
You might be tempted to sell your dental practice without a broker. However, in our experience, few things better prepare you for a successful sale than having a trusted, seasoned industry expert in your corner.
Selling your practice will likely be a complex, multifaceted process. While you are an expert in all things dentistry, there are likely knowledge gaps when it comes to practice transitions.
A qualified dental broker and transition partner can complement your expertise by:
- Managing your practice valuation
- Handling complex financial paperwork
- Equipping your attorneys for a smooth closing
- Screening and qualifying potential buyers
- Advising you through every step of the transition
Having a strong transition partner typically makes the process ten times easier and leads to much higher satisfaction with the outcome.
Ready to Sell? Partner with Triumphant!
If you’re thinking about selling your practice, partner with Triumphant!
We bring decades of industry experience and are here to help you maximize the value of your practice and make your transition seamless.
Contact us today for a free courtesy consultation and take the first step toward your next adventure!