Dental Transition Practice Advisor

Over the years, we have identified several key factors that commonly impact practice performance. Consider the following questions to assess your current situation:

Has your practice’s revenue growth plateaued or begun to decline?
Are you physically present at work, but mentally preoccupied with personal interests such as travel or leisure?
Are you experiencing stress or fatigue that makes you consider reducing your workload?
Is your health beginning to reflect the physical demands of your profession?
Are you finding it increasingly challenging to manage and motivate your staff?
Do you wish to take significant time off without worrying about operational costs or overhead?
Are you looking to expand your interests beyond the scope of medicine or dentistry?
Are you considering converting the equity in your practice into a revenue-generating investment while still retaining control of your practice and future?
Are you frustrated with associates who lack commitment and take advantage of your leadership?

These factors often signal the need for strategic changes in practice management.^*

Selling 100% of a dental practice is generally more straightforward and less complex than partial sales. However, for many dentists who are still active in their careers and not yet nearing retirement, a phased approach—selling a portion now and the remainder closer to retirement—can be a more strategic option. For some, bringing in an equity partner offers greater stability compared to the frequent turnover often experienced with associateships. Alternatively, some doctors may prefer to sell the practice entirely and remain as an associate, allowing them to focus on patient care on their own terms without the burden of managing the office or staff. This approach also enables them to realize the full value of their practice upfront, providing capital to invest for the future while continuing to generate income.

Each of these pathways offers distinct benefits and challenges. I can help you assess which option aligns best with your personal goals, practice needs, and long-term family plans.

In the dental sectors, the likelihood of an associate buying into a practice is exceptionally low, with over 90% of associateships ultimately failing. If you hire an associate without requiring an immediate equity investment, it’s highly probable that they will eventually leave. This is often due to varying levels of commitment among associates, which contributes to high turnover.

We recommend a strategic approach to assess whether bringing on an associate is beneficial for your practice and, if so, how to structure the relationship to maximize value and longevity. Contact me to discuss the optimal timing and approach for integrating an associate into your practice.

In recent years, a growing number of financial institutions have specialized in dental practice transactions, leading to an increasing number of doctors receiving full cash payments at closing. This approach mitigates the seller’s risk of late payments or defaults. However, the potential downside arises when sellers fail to manage their funds effectively, taking unnecessary financial risks post-sale.

To avoid such pitfalls, it’s crucial to seek guidance from your accountants and attorneys, ensuring that the proceeds are managed wisely and in alignment with your long-term financial strategy.

In a major metropolitan area, the typical timeframe for establishing a practice ranges from 6 to 12 months. However, in smaller rural communities, this period can extend up to 3 years. The duration for specialty practices may vary based on the type of practice and its geographic location. Factors such as profitability, practice size, market conditions, and the broader economic environment also play a significant role in determining the establishment timeline.