How to List a Dental Practice with a Broker
Key Takeaways
To list a dental practice with a broker, start with an introductory consultation, gather three years of financial documents, complete a professional valuation, and allow your broker to create a confidential practice profile for qualified buyers.
- Timeline: Most practices sell within 3-6 months of listing, with the ADA noting an ideal closing window of 4-6 weeks once a buyer is identified.
- Valuation range: Dental practices typically sell for 65-80% of annual collections, though profitability matters more than gross revenue.
- Broker fees: Expect to pay 6-12% commission, with smaller practices at the higher end of that range.
- Documents needed: Tax returns (3 years), profit/loss statements, office lease, equipment inventory with ages, staff compensation details, and production reports by provider.
- Confidentiality: Buyers sign NDAs before receiving practice details; staff and patients typically aren't informed until closing.
You’ve spent years building your practice, and now you’re thinking about selling. Maybe retirement is on the horizon, or you’re ready for a new chapter. Either way, working with a dental practice broker can take a mountain of work off your plate and help you get a fair price for what you’ve built.
But how does the process actually work? What should you expect when you pick up the phone and call a broker for the first time?
Let me walk you through the steps of listing your dental practice with a broker, from that initial conversation to the day you hand over the keys.
Start with a Conversation, Not a Contract
Before you sign anything or commit to a listing, you’ll have an introductory call or meeting with a broker. This isn’t a sales pitch where someone pressures you into a decision. A good broker wants to understand your situation first.
They’ll ask questions like:
- When are you hoping to sell?
- Do you plan to stay on for a transition period?
- What are your financial goals?
- Are you open to selling to a DSO, or do you prefer a private buyer?
This conversation helps the broker understand what success looks like for you. Some dentists want maximum cash at closing. Others care more about finding someone who will take care of their patients and staff. Many want a mix of both.
“Every dentist’s situation is different,” says Matt Poppert of DDSMatch South. “We spend a lot of time in those early conversations understanding not just the numbers, but what matters most to the seller personally.”
Be honest during this conversation. If you’re burned out and want to leave in six months, say so. If you’d rather work part-time for another three years, that changes the strategy entirely.
Gather Your Financial Documents
Once you decide to move forward, your broker will need a stack of paperwork. This might feel tedious, but accurate financial information is what determines your practice’s value and attracts serious buyers.
Here’s what you’ll typically need to pull together:
Tax returns for the last three years. Buyers and their lenders will scrutinize these closely.
Profit and loss statements showing your current year-to-date performance.
A copy of your office lease including the terms, renewal options, and any clauses that could affect a sale.
Equipment list with approximate ages. That Cerec machine you bought last year? It adds value. Those 20-year-old chairs? A buyer will factor replacement costs into their offer.
Staff information including pay rates, tenure, and benefits. Long-term employees who know your patients are genuinely valuable.
Production reports broken down by provider. Buyers want to see how much revenue comes from you versus hygiene versus associates.
The American Dental Association’s practice transition resources recommend creating a detailed inventory of all dental and office equipment, including brand names, model numbers, serial numbers, and maintenance records. Don’t worry if your records aren’t perfectly organized. Your broker has seen messy QuickBooks files before. But the faster you can get this information together, the faster you can get to market.
The Valuation Process
With your documents in hand, your broker will conduct a practice valuation. This is where you find out what your practice is actually worth, not what you hope it’s worth.
Industry data shows that dental practices typically sell for somewhere between 65% and 80% of annual collections. But that range is wide for a reason. A practice collecting $1 million with 50% overhead is worth significantly more than one collecting $1 million with 70% overhead.
Your broker will look at multiple factors beyond just revenue:
Profitability matters more than production. What do you actually take home after paying staff, supplies, lab fees, and rent?
Patient demographics tell a story. A practice with mostly younger families has different growth potential than one where the average patient age is 65.
Location and competition affect what buyers will pay. A practice in a growing suburb of Atlanta will attract more interest than one in a declining rural area.
Facility condition can help or hurt. Fresh paint and updated operatories signal a well-maintained practice. Worn carpet and outdated décor suggest deferred maintenance.
According to the ADA’s guidance on practice valuation, beginning with an accurate valuation sets the stage for effective negotiations and prevents the misunderstandings that often kill deals. The valuation gives you a realistic asking price. Some dentists are pleasantly surprised. Others learn they need to make improvements before listing if they want to hit their target number.
Creating Your Practice Profile
Your broker will put together a comprehensive profile that markets your practice to potential buyers. This document tells the story of your practice without revealing identifying details that could tip off staff or patients prematurely.
A good profile includes:
- Financial performance summaries
- Practice highlights and growth opportunities
- Staff overview
- Equipment and technology inventory
- Lease terms and facility description
- Community and demographic information
In Georgia, Tennessee, Alabama, and the Florida Panhandle, DDSMatch South creates these profiles with attention to regional factors that matter to local buyers. A practice near the Tennessee border has different appeal than one in coastal Florida.
The profile goes out to qualified buyers who have signed confidentiality agreements. Your broker maintains a database of dentists actively looking to purchase, which is often how the best matches happen quickly.
Fielding Offers and Negotiating Terms
When interested buyers emerge, your broker screens them before you spend time meeting anyone. Are they financially qualified? Do they have the experience to run your type of practice? Are their goals compatible with yours?
Once a serious buyer expresses interest, they’ll typically submit a Letter of Intent. This document outlines the proposed purchase price, terms, and timeline. It’s not legally binding, but it signals genuine commitment.
Here’s where having a broker really pays off. Negotiating directly with a buyer can get awkward fast. Money conversations strain relationships, and you’ll likely need to work together during a transition period. Your broker handles the back-and-forth so you can maintain a positive relationship with your future successor.
Common negotiation points include:
- Purchase price and how it’s allocated between goodwill and tangible assets
- Transition period length and your compensation during that time
- Non-compete terms and geographic restrictions
- How accounts receivable and patient credits are handled
- Staff retention expectations
The ADA notes that the ideal timeframe from listing a practice to closing is between four and six weeks, though more complex transactions can take several months.
Due Diligence and Closing
After agreeing on terms, the buyer conducts due diligence. They’ll review patient charts, verify your financial claims, inspect equipment, and possibly meet with staff. This phase can feel invasive, but it protects both parties.
Meanwhile, the buyer secures financing. Most dental practice purchases are financed through specialized lenders who understand the industry. Banks are generally eager to lend to dentists because dental practice loans have historically low default rates. In fact, most reputable dental lenders will fund 100% of the purchase price on a profitable practice.
Your broker coordinates with attorneys on both sides to draft the Asset Purchase Agreement. This legally binding document covers every detail of the sale. Having an attorney who specializes in dental transactions is worth the investment here.
As closing approaches, you’ll handle final details like:
- Notifying insurance companies and credentialing the new owner
- Transferring utilities and vendor accounts
- Preparing a letter to patients introducing the new dentist
- Training staff on communicating the transition positively
On closing day, funds transfer, documents get signed, and the practice officially changes hands. For many dentists, it’s emotional. You’re handing over something you built from nothing.
What Brokers Charge
Broker fees typically range from 6% to 12% of the sale price, with smaller practices on the higher end of that range. A practice producing under $400,000 annually requires just as much work to sell as a larger one, often more, so brokers charge accordingly.
Some brokers charge an upfront valuation fee of $1,500 to $4,000, which may be credited toward commission if you list with them. Others include valuation in their services.
The commission might seem steep, but consider what you’re getting. Industry estimates suggest that practices sold without brokers fall apart before closing about half the time. Buyers lose interest, disagreements derail negotiations, or financing falls through. A broker keeps the transaction on track.
Choosing the Right Broker
Not every broker is the right fit for every practice. When interviewing brokers, ask about:
Their experience in your area. A broker who knows the Georgia, Tennessee, Alabama, and Florida Panhandle markets understands local buyer pools and regional factors.
How they market practices. Do they just post a listing and wait, or do they actively reach out to qualified buyers?
Their contract terms. Six months to one year is standard, but be wary of long-term contracts with penalties for canceling.
References from other sellers. Talk to dentists who have worked with them. Were they responsive? Did the sale price meet expectations?
DDSMatch South focuses exclusively on the Southeast region, which means they understand the specific dynamics of practicing dentistry here. They’re not trying to cover the entire country and spreading themselves thin.
Frequently Asked Questions
How long does it take to sell a dental practice with a broker?
Most practices sell within three to six months of listing, though some move faster and others take longer. Practices in desirable locations with strong financials tend to attract buyers quickly. More complex situations or rural locations may require patience.
Can I list my practice confidentially so my staff doesn’t find out?
Yes, brokers maintain strict confidentiality throughout the process. Your practice is marketed without identifying details, and buyers sign non-disclosure agreements before receiving information. Staff and patients typically aren’t told until the sale is finalized.
What if my practice needs improvements before selling?
Your broker can advise on which improvements are worth making. Sometimes updating décor or replacing aging equipment increases your sale price enough to justify the investment. Other times, it’s better to price accordingly and let the buyer make changes.
Do I have to use a broker to sell my dental practice?
No, but selling on your own requires significant time and expertise. You’ll need to handle valuation, marketing, buyer screening, negotiations, contracts, and coordination with attorneys and lenders. Most dentists find the broker’s fee worthwhile for the convenience and expertise.
What happens if I change my mind after listing?
Review your listing agreement carefully. Most contracts allow you to withdraw, though some may have fees or restrictions. Discuss this possibility with your broker upfront so there are no surprises.
Will a broker help me sell to a DSO?
Many brokers, including DDSMatch South, have relationships with dental service organizations and can facilitate those transactions. DSO sales often have different terms than private sales, including earnouts and employment requirements, so having experienced guidance matters.
DDS Match South is here to assist you in selling your dental practice.
We can outline the exact steps you will need to take to sell your dental practice. Request a Complimentary Dental Practice Transition Assessment today to get started. We help dentists in Alabama, Georgia, Tennessee, and the Florida Panhandle sell their dental practices.
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