Practice Orbit How to Sell a Dental Practice Myself: A Guide for Dentists
Selling a dental practice is one of the biggest milestones in a dentist’s career. You’ve spent years building your patient base, growing your team, and investing in the latest technology to provide excellent care. Now, it’s time to move on, and you might be wondering, “How can I sell my dental practice myself?”
As an attorney who has guided countless dentists through this process, I can tell you that selling your practice on your own is possible, but it comes with challenges. In this blog post, I’ll share key steps to help you navigate the process and introduce you to Practice Orbit, a platform that simplifies selling your practice—whether you want to do it yourself or with professional support.
1. Start with an Accurate Valuation
The first step in selling your dental practice is figuring out what it’s worth. Valuing a practice is tricky because it’s not just about the financials; you have to consider intangible factors like goodwill, patient loyalty, and even the local competition.
I once worked with Dr. Sam, who was determined to sell his practice on his own. He valued his practice based on his revenue, but he didn’t account for other factors like patient demographics or his practice’s location in a rapidly growing area. He set the price too low and almost undersold it until we reassessed the value and he realized how much more his practice was worth.
Practice Orbit offers tools that help you conduct a thorough practice valuation. By considering all factors—tangible and intangible—you’ll have a better understanding of what your practice is truly worth, ensuring you don’t undervalue or overvalue it.
2. Prepare Your Financials and Legal Documents
Once you’ve determined the value of your practice, the next step is getting your financials and legal documents in order. Buyers will want to see profit and loss statements, tax returns, patient volume data, and details about your assets like equipment and office space.
I remember Dr. Jenna, who thought she could handle the sale on her own, but didn’t realize how much paperwork would be involved. She was swamped with trying to pull together her financial records while also running her practice full-time. It quickly became overwhelming.
Before listing your practice, gather at least the last three years of financial statements, a list of assets, and any contracts with employees or vendors. Practice Orbit makes this step easier by providing templates and checklists, so you know exactly what documents are needed to present a clear picture to potential buyers.
3. Marketing the Practice: Finding the Right Buyer
Finding the right buyer is arguably one of the toughest parts of selling your dental practice. Dr. Evan, another client of mine, wanted to sell his practice to someone who would take care of his patients and staff just as he did. But finding a buyer who was a good fit, let alone qualified, was difficult.
Marketing your practice is more than just listing it for sale; it’s about reaching the right audience. You need to think about where potential buyers are looking and how to present your practice in the best light. This involves crafting a compelling listing that highlights what makes your practice unique—whether it’s your loyal patient base, your state-of-the-art equipment, or your prime location.
This is where Practice Orbit comes in handy. The platform not only connects you with a pool of pre-qualified buyers but also helps you create a professional listing that attracts serious buyers who are aligned with your practice’s values and vision.
4. Negotiating the Deal: Avoid Common Pitfalls
Selling a dental practice yourself means you’ll be handling negotiations with potential buyers. This can be tricky if you’re not experienced in business transactions. Dr. Nancy, a dentist I worked with, initially wanted to sell her practice herself but found it difficult to negotiate the price and terms without emotional attachment getting in the way. After all, this was her life’s work.
When negotiating, you’ll need to decide not just the price but also the terms of the sale. Will you sell the assets or the entire entity? Will you stay on for a transition period to ease the handover? How will existing staff be handled?
Practice Orbit simplifies negotiations by connecting you with experienced advisors and legal professionals who can guide you through the process, ensuring that you’re getting the best deal and not overlooking critical details.
5. Transitioning the Practice: Protecting Your Legacy
Selling a dental practice is not just a financial transaction—it’s an emotional one. You’re handing over the reins to someone else, and for many dentists, ensuring that patients and staff are well taken care of is a top priority.
Dr. Lisa, a dentist I helped sell her practice, was deeply concerned about how the transition would affect her long-time staff. She didn’t want to just “sell and run”—she wanted to make sure her patients were comfortable with the new owner and her staff remained employed. We worked together to include a transition period in the sale agreement where she stayed on for six months to help ease the transition.
When selling your practice, think about how you want the transition to play out. Will you stay on for a period of time to help introduce the new dentist to your patients? Will the buyer be required to retain your staff? Practice Orbit allows you to set these expectations upfront, ensuring a smooth handover that protects your legacy and patient relationships.
6. Understanding the Tax Implications
One of the most commonly overlooked aspects of selling a practice is understanding the tax implications. Selling a practice can trigger capital gains taxes and possibly ordinary income taxes, depending on how the sale is structured. I recall a story from Dr. Marcus, who didn’t anticipate how much tax he would owe after selling his practice. He had assumed most of the proceeds would go straight to his retirement fund, only to find out that taxes would take a large bite out of the sale.
To avoid surprises, it’s crucial to work with a tax advisor who understands dental practice sales. Practice Orbit connects sellers with financial professionals who can help you structure the sale to minimize taxes, ensuring you keep as much of the proceeds as possible.
Conclusion: Selling Your Dental Practice Yourself with the Right Support
So, if you’re asking, “How do I sell my dental practice myself?” the answer is simple: It’s possible, but it requires careful planning, organization, and the right tools. From accurately valuing your practice and preparing your financials to negotiating terms and ensuring a smooth transition, there are many moving parts to consider.
This is where Practice Orbit comes in. Whether you’re determined to sell your practice yourself or you’d like some expert guidance along the way, Practice Orbit provides the resources, tools, and professional connections you need to get the best result. With its platform, you can manage the sale on your own terms while ensuring that no detail is overlooked.
Selling your dental practice is a monumental decision, but with the right preparation and support, you can do it successfully and with confidence. Take the first step by exploring Practice Orbit, and set yourself up for a smooth and profitable transition.