Hiring a Dental Broker: Three Red Flags to Look Out For

You’ve built your dental practice from the ground up. Years of early mornings, late nights, and countless patient relationships have created something valuable. Now you’re thinking about selling, and the process feels overwhelming. Working with an experienced dental broker can help you navigate the sale confidently, ensuring you get the value you’ve earned for all your hard work.

Most dentists in Georgia, Tennessee, Alabama, and the Florida Panhandle will work with a dental broker at some point during their transition. It makes sense—selling a practice takes roughly 150 hours of work and requires knowledge of valuations, negotiations, and legal documents that most dentists don't have time to master while running a busy practice.

But here's the thing: not all dental brokers operate the same way. Matt Poppert has seen countless dentists sign agreements without fully understanding the terms, a mistake that costs them both money and peace of mind. Ryan LaPrad of DDSMatch South emphasizes that the relationship between a seller and their broker should be built on transparency and trust, not pressure tactics or hidden agendas.

The dental practice market is more active than ever. According to the American Dental Association, the average net income for general dentists in private practice reached $207,980 in 2024, and the industry continues to see steady growth. With this level of activity comes more brokers entering the market—some excellent, others less so.

So how do you spot a broker who might not have your best interests at heart? Here are three red flags that should make you pause before signing anything.

Red Flag #1: They Represent Both the Buyer and Seller

This is the big one. Many dental brokers operate as transaction brokers, meaning they represent both parties in the sale. Think about that for a second—they're supposed to advocate for you while also advocating for the person trying to pay you less.

It's like having a real estate agent who represents both you and the buyer of your home. Whose interests come first when push comes to shove?

Transaction brokers who handle both sides of the deal owe each party disclosure, confidentiality, accounting and reasonable care, but have no fiduciary responsibility to either party. In other words, they act more like referees than advocates. That might work fine for straightforward deals, but when negotiations get complicated—and they often do—you want someone in your corner who's only thinking about your outcome.

A single-agency broker or fiduciary works exclusively for you. They owe you loyalty, obedience to your instructions, and a duty to put your interests above everyone else's. That's a meaningful difference when you're negotiating the sale of an asset that might be worth $600,000 to over a million dollars.

What to ask: "Will you represent me exclusively, or will you also represent the buyer?" If they dodge the question or say it doesn't matter, that's your answer.

Red Flag #2: They Only Have Access to a Limited Pool of Buyers

Here's a scenario that plays out more often than you'd think: A broker approaches you with one interested buyer—maybe a DSO they've worked with before, or a dentist they know is looking to expand. They make it sound convenient. No lengthy marketing period, no uncertainty. Just a straightforward deal.

But here's what they're not telling you: that single buyer becomes your entire negotiation.

The average dental practice in 2024 sells for approximately $520,000, though this varies significantly based on location, size, and financial performance. When you have only one buyer at the table, you're accepting whatever that buyer thinks is fair. When you have three or four competing offers, the dynamics change completely.

Ryan LaPrad has consistently observed that practices receiving multiple offers sell for considerably better terms than those with single buyers. It's basic economics—competition drives value. A broker with access to a robust network of qualified buyers, including individual dentists, partnerships, and multiple DSOs, can create that competitive environment.

Some brokers work with a narrow slice of the market. They might specialize only in DSO transactions, or they might have relationships with just a handful of individual buyers in your region. That limited reach translates directly into limited options for you.

As of 2024, more than one in ten dentists (16%) in the U.S. are affiliated with a dental support organization, according to data from the American Dental Association. The DSO market is growing, especially among younger dentists, with 27% of dentists who graduated less than 10 years ago affiliating with DSOs. But it's far from the only option. A broker who can't or won't present your practice to both DSO and private buyers is limiting your potential.

Warning signs your broker has limited buyer access:

• They present only one or two offers and claim "that's all the market interest"
• They specialize exclusively in DSO sales or doctor-to-doctor transitions, but not both
• They can't clearly explain how they'll market your practice to multiple buyer types
• They seem eager to close quickly with the first interested party

The dental practice market is relationship-focused and somewhat fragmented—there's no Zillow for dental practices. That means a broker's network and reputation matter tremendously. Ask how many qualified buyers they typically present to sellers. If they dodge the question or can't demonstrate a track record of creating competitive bidding situations, that's a significant red flag.

What to ask: "How many potential buyers do you typically present to sellers? Can you show me examples of practices similar to mine that received multiple offers?"

Red Flag #3: They Don't Specialize in Dental Transitions

Selling a dental practice isn't like selling a restaurant or a retail store. There are unique considerations: PPO contracts, hygiene production percentages, active patient counts, equipment valuations, and the relationships with labs and suppliers. Then there's the complexity of DSO transactions, which have become increasingly common across the Southeast.

As mentioned, more than 16% of U.S. dentists are now affiliated with DSOs, and this percentage is even higher in certain markets. If your broker doesn't understand how DSOs structure deals—including earnouts, rollover equity, and post-sale employment agreements—you could leave money on the table or agree to terms you'll regret.

A broker who primarily handles general business sales might have good intentions, but they won't know the dental-specific questions to ask. They won't understand why your case acceptance rate matters, or how to position your practice to the right type of buyer. According to the American Dental Association, the average gross billings for general practitioners in 2024 was $942,290, but your actual sale price depends on factors like profitability, location, patient demographics, and market timing.

Matt Poppert of DDS Match South has worked with enough practice sales to know that experience in dental transitions specifically makes the difference between a smooth sale and one that falls apart three months in. The details matter—from understanding typical patient attrition during transitions to knowing which lenders work best with dental acquisitions.

What to ask: "How many dental practices have you personally sold? Can I speak with a few of your recent clients?"

What Sets Good Dental Brokers Apart

When you work with a specialized dental broker like the team at DDS Match South, the difference becomes clear pretty quickly. They know the markets in Georgia, Tennessee, Alabama, and the Florida Panhandle. They understand what buyers in these regions are looking for, what practices are actually selling for, and how to position your practice to stand out.

The dental market is experiencing significant shifts, with DSO affiliation growing particularly among early-career dentists, but doctor-to-doctor transitions remain strong. A knowledgeable broker understands both pathways and can help you choose the right one for your situation.

More importantly, good brokers focus on a few key things that mediocre brokers skip:

Attention to detail. Good brokers don't use the same generic marketing template for every practice. They take time to understand what makes your practice unique and how to communicate that to the right buyers.

Responsiveness. You shouldn't have to chase your broker for updates or wait days for answers to simple questions. The sale of your practice deserves prompt, professional communication.

Market knowledge. The dental market has changed significantly in recent years. Knowing current valuation trends, understanding DSO appetite, and having relationships with qualified individual buyers makes a real difference in the offers you'll receive.

DDS Match South has built their reputation on these principles. They represent sellers exclusively, maintain confidentiality throughout the process, and work to bring multiple qualified buyers to the table. That competition typically results in better terms and a smoother transition.

 

The Bottom Line

Selling your dental practice is probably the largest financial transaction you'll make outside of buying a home. You deserve a broker who's completely on your side, transparent about costs, and deeply experienced in dental transitions specifically.

If you're talking to a broker who raises any of these red flags, trust your gut. Ask more questions. Get a second opinion. And don't sign anything until you're confident you're working with someone who truly has your back.

The right broker will help you maximize your practice value, find a buyer who aligns with your vision, and navigate the complicated process with less stress. They'll also help you build a complete advisory team including attorneys, accountants, and lenders who specialize in dental transitions. The wrong broker? They'll cost you money, time, and sleep.

Choose carefully. Your legacy—and your retirement—depend on it.

Frequently Asked Questions

Q: How long does it typically take to sell a dental practice?

The timeline varies based on your practice's characteristics and market conditions, but most sales take between three to six months from listing to closing. Practices in desirable locations with strong financials often sell faster, while smaller or rural practices might take longer to find the right buyer. Having a broker with an extensive buyer network can significantly shorten this timeline.

Q: Should I get my practice valued before talking to a dental broker?

Getting an independent valuation is smart, especially if you're unsure about your practice's worth. The typical dental practice generates around $800,000 in revenue, with practices generally selling for 60-80% of annual collections. Some brokers offer free valuations as part of their service, but independent valuations help ensure you're not getting an inflated price that serves the broker's commission more than your realistic selling goals.

Q: What's the difference between selling to a DSO versus an individual dentist?

DSOs often offer higher upfront payments but typically require a multi-year commitment where you continue working as an employee at a reduced compensation rate. Individual dentists usually pay less upfront but you can walk away completely after the transition period. Each option has advantages depending on your goals for retirement, income, and continued involvement. According to industry analysis, having multiple DSO and private offers to compare often results in significantly better terms.

Q: Can I sell my dental practice without using a broker?

You can, but it's challenging. Industry estimates suggest that about 50% of practices sold without brokers fall apart before closing due to financing issues, disagreements, or buyers losing interest. Most dentists find the 150-200 hours required to manage the sale themselves isn't worth the commission savings, especially when considering that brokers typically help achieve higher sale prices through competitive offers.

Q: How do I know if a broker's fee is reasonable?

Broker fees typically range from 6-12% of the sale price, with larger practices paying on the lower end and smaller practices paying more. The fee should be clearly stated in writing, and you should understand exactly what services are included. More importantly, focus on the net result—a broker charging 10% who brings you three competing offers might get you $100,000 more than a broker charging 8% who brings one buyer.

Q: What's the most important quality to look for in a dental broker?

Experience with dental transitions specifically matters most. A broker who understands practice valuations, knows the buyer pool in your area, and can navigate the unique aspects of dental sales will get you better results than a generalist, even if the generalist has sold other types of businesses successfully. Look for someone with documented experience in your region—Georgia, Tennessee, Alabama, or the Florida Panhandle—who understands local market dynamics.