10 Costly Mistakes Dentists Make When Selling Their Practice

Avoid These Common Pitfalls and Maximize the Value of Your Dental Practice

Selling your dental practice may be one of the biggest financial and emotional decisions of your career. Whether you’re considering retirement, a career pivot, or simply stepping away from ownership, this guide will help you avoid the most common (and expensive) mistakes dentists make during the selling process.

Mistake #1: Waiting Too Long to Plan

Most dentists start thinking seriously about selling just months before they want out. That leads to rushed decisions and reduced valuations. Ideally, begin planning 2–3 years before your exit.

Mistake #2: Not Knowing What Your Practice Is Worth

Guessing based on hearsay or what a colleague got is a mistake. Get a formal valuation from a qualified dental broker or CPA.

Mistake #3: Not Cleaning Up Your Financials

Messy books, personal expenses mixed in, or outdated equipment can scare off serious buyers. Tidy records and operational transparency boost buyer confidence.

Mistake #4: Failing to Optimize Production Prior to Sale

Buyers look for consistent, healthy revenue. If production is declining, you may need to reinvest in marketing or staffing temporarily to show growth potential.

Mistake #5: Ignoring the Real Estate Angle

If you own the building, you need to decide whether to lease or sell it. Each option affects your financials and the buyer’s interest.

Mistake #6: Underestimating Staff Concerns

While it's common to wait until just before closing to inform the team about a sale in order to avoid unnecessary disruption or turnover, it's still important to think ahead about how you'll communicate the transition. Having a thoughtful plan to reassure staff once they’re brought into the loop can help preserve trust, minimize uncertainty, and support a smoother handoff to the buyer.

Mistake #7: Jumping at the First Interested Buyer

It can be exciting to get an offer, but it’s still important to evaluate it carefully. Even if you’re not fielding multiple offers, make sure you understand all the terms—not just the price. Factors like financing, transition expectations, and timing can significantly impact the overall outcome of your sale.

Mistake #8: Going It Alone

Selling a practice involves legal, financial, and emotional complexities. Work with a trusted team: broker, CPA, and attorney.

Mistake #9: Overlooking DSO Options (or Fearing Them)

Not all Dental Service Organizations (DSOs) are equal. The right one can offer a premium price, flexible terms, and operational support.

Mistake #10: Not Defining Your Priorities for the Transition

For some sellers, it’s important that the buyer shares their approach to patient care and continues the legacy they've built. For others, the focus is on maximizing the financial return. Either way, it’s essential to define what matters most to you early in the process so you can evaluate buyers (and offers) accordingly.

Bonus Tip:

Even if you’re not ready to sell for a few years, get a valuation and exit roadmap now. This allows you to increase value, reduce taxes, and transition on your terms.

Want Help Planning Your Exit?

Schedule a complimentary ‘Practice Exit Strategy Call’ and get personalized guidance on value, timing, and potential buyers.

→ Visit https://www.mcvaytransitions.com/ or Call 425-489-0848

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Like any business, dental practices strive to increase performance, efficiency, and profitability. That’s where McVay Dental Transitions comes in. We’ll help you build long-term success with a focused, strategic direction for your future.

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