Know Your Dental Practice Transition Options – Which Sale Path Is Right for You?
Selling your dental practice is one of the biggest financial and emotional decisions you’ll make in your career. After years of building patient trust and growing your practice, it’s natural to want a transition that feels both rewarding and smooth.
Before jumping into the first offer that comes your way, it’s important to understand the various types of sales available — and how each one impacts your timeline, income, and post-closing role.
At JRA Healthcare – Real Estate & Practice Advisory, we help doctors evaluate their long-term goals, align expectations with the marketplace, and identify the right buyer type to ensure a seamless transition and the highest possible return.
1. Sell the Practice and Walk Away
This is the simplest and fastest transition model. You sell your practice outright to an individual buyer and step away once the deal closes.
Practice Characteristics
- Collections: $400,000+
- Post-closing employment: Minimum 6 months
- Patient base: PPO or FFS
- Sale price: 65%–100% of collections
Pros: You’ll receive full payment upfront, choose a buyer who aligns with your patient care philosophy, and enjoy a clean break as you enter retirement or your next chapter.
Cons: Buyers typically rely on lender financing, which can delay the process and cap the purchase price. Some individual buyers may also hesitate or change course before closing.
2. Sell and Continue Working as an Employee
For dentists who aren’t ready to retire immediately, selling to a buyer and staying on as an associate can provide financial security and flexibility.
You’ll hand over ownership but continue to work for a set number of years under the new owner.
Practice Characteristics
- Collections: $600,000+
- Post-closing employment: 2 years or more
- Patient base: PPO or FFS
- Sale price: 80%–150% of collections, potential equity
Pros: This option often yields a higher purchase price and lets you remain involved in patient care without the stress of ownership. It’s ideal for doctors who want to phase out gradually.
Cons: You’ll need to adjust to new management styles and policies. Corporate buyers or DSOs may also hold back part of the purchase price, releasing the remainder over time.
3. Transition to an Associate or Partner Over Time
Many dentists dream of passing their practice to a trusted associate or partner. This can be a rewarding approach when structured properly.
Practice Characteristics
- Collections: $400,000+
- Post-closing employment: Flexible
- Patient base: PPO or FFS
- Sale price: 65%–100% of collections
Pros: The successor already knows your patients and office systems, ensuring continuity of care and staff retention. You can control how quickly or slowly ownership transfers.
Cons: Without a formal agreement and valuation in place, these transitions can become complicated. Associates may feel entitled to equity as they grow the practice, and lenders often require extra documentation for partnership structures.
4. Sell to a DSO or Group Buyer
Dental Service Organizations (DSOs) — also called Dental Support Organizations — are increasingly active buyers in today’s market. They acquire practices to expand their network, offering doctors flexibility and strong financial terms.
Practice Characteristics
- Collections: $600,000+
- Post-closing employment: 2–5 years typical
- Patient base: PPO or FFS
- Sale price: 80%–150% of collections, with possible stock or equity
Pros: High purchase prices and opportunities for equity or performance bonuses make this an appealing route. DSOs handle all business operations, freeing you to focus solely on dentistry.
Cons: You may have less control over patient experience and operations post-sale. The corporate process can also be complex and involve multi-stage payouts.
5. Chart Sale or Merger with an Existing Practice
If your practice has lower collections or you’re ready to retire soon, a chart sale or merger may be the best solution. You can transfer your patient records to another nearby office or merge practices entirely.
Practice Characteristics
- Collections: $350,000 and under
- Post-closing employment: Up to 6 months
- Patient base: PPO, FFS, HMO, or Medicaid
- Sale price: 15%–65% of collections
Pros: This option offers certainty of sale and helps ensure patients continue receiving care. It’s especially practical if your lease is ending or you want a shorter transition.
Cons: The purchase price is lower, and your pool of potential buyers is limited to nearby practices. You may still be responsible for lease or liability obligations after closing.
Choosing the Right Transition Path
There’s no one-size-fits-all approach to selling a dental practice. The best option depends on:
- Your annual collections
- Desired retirement or transition timeline
- Willingness to stay involved post-sale
- Your long-term financial goals
Our team at JRA Healthcare takes all of these factors into account to design a transition plan tailored to you. Whether you’re seeking a quick exit, gradual hand-off, or corporate partnership, we’ll help you navigate the marketplace with confidence.
Partner with JRA Healthcare
At JRA, we’ve helped countless dental professionals achieve smooth and profitable transitions. Our experts manage every step — from valuation and buyer sourcing to negotiation and closing — so you can focus on your patients and your next chapter.
Contact us today to learn which transition strategy best fits your goals and how to maximize your practice’s value.
📍 JRA Healthcare – Real Estate & Practice Advisory
600 Enterprise Dr, Suite #214, Oak Brook, IL 60523
📞 630-353-1190 | ✉️ [email protected]