As a dentist, you’ve dedicated years to building a successful dental practice. Whether you’re planning for retirement, moving on to a new venture, or simply ready for a lifestyle change, selling or transitioning your dental practice is a major financial and emotional decision. Proper planning can help you maximize value, minimize tax burdens, and ensure a smooth transition for your patients and team.
In this guide, we’ll walk you through the key things to consider when preparing your dental practice for sale or transition—and how IMS Financial can help support this critical milestone.
🔑 1. Understand the Value of Your Practice
Before listing your practice for sale, you need a professional valuation. A proper valuation considers factors like:
-
Annual revenue and profit margins
-
Patient base and retention rate
-
Location and growth potential
-
Equipment and technology
-
Staff experience and compensation
Tip: Work with a dental practice broker or financial advisor to get an accurate estimate. This not only sets realistic expectations but also strengthens your negotiation position.
💼 2. Plan for the Tax Implications
The tax consequences of selling a dental practice can be complex. Asset sales and stock sales are taxed differently, and structuring your deal properly could save you thousands.
We recommend reviewing the IRS guide on selling a business and consulting a CPA with experience in dental transitions.
🤝 3. Choose the Right Buyer and Financing Partner
Whether you’re selling to an associate, a DSO, or an outside buyer, their ability to secure financing will affect how fast and smooth the deal goes.
IMS Financial can pre-qualify potential buyers with competitive practice acquisition loans, reducing friction in the process. We specialize in working with dentists—whether you’re selling or buying—and can help you evaluate buyers and timelines. Contact us today to learn more.
📆 4. Create a Transition Plan
A successful sale doesn’t end with a signed agreement. Develop a plan to gradually transition:
-
Introduce patients to the new provider
-
Outline how long you’ll stay on (if at all)
-
Coordinate with your team and staff
-
Ensure continuity of care
This helps retain goodwill and protects the value you’ve built over the years.
💡 5. Start Early and Build a Financial Cushion
If you’re planning to retire in 3–5 years, now is the time to start preparing. Build an emergency fund and revisit your exit strategy regularly to stay flexible. Learn more in our blog: Why Your Dental Practice Needs an Emergency Fund
Ready to Begin?
Selling your dental practice is a once-in-a-lifetime event—make it count. With expert guidance, careful planning, and the right financial partners, you can secure the future you’ve worked hard for.
At IMS Financial, we’re here to support your journey with practice sale consulting and custom financing solutions tailored to dentists. Let’s talk about how we can help make your transition a success. Get in touch today.
