Exit Planning for Dental Practice Owners

The dentists who achieve the best practice exits don't happen into them. They plan for them — typically 12–24 months in advance — making deliberate decisions that systematically increase practice value and reduce transaction risk.

Months 1–3: Establish Your Starting Point

Get a Baseline Valuation

A market-grounded valuation tells you your current EBITDA, your likely multiple range, and the specific gaps between where you are and where premium buyers want you to be.

Assemble Your Advisory Team

You need three people: an M&A advisor who specializes in dental (us), a CPA experienced in dental practice transactions, and a healthcare transaction attorney. Get these in place early — not during a live deal.

Audit Your Financial Picture

Pull three years of production/collection reports, P&L statements, and tax returns. Identify every legitimate owner add-back. This exercise alone often reveals 20–40% more EBITDA than the P&L shows.

Months 3–9: Build Value Systematically

Optimize Your Hygiene Program

A strong hygiene program is the single most consistent value driver in dental M&A. Targets: 85%+ recare rate, 30%+ of collections from hygiene, productive hygiene scheduling with minimal downtime.

Improve New Patient Flow

New patient flow is a leading indicator of future practice growth — and buyers read it that way. A practice generating 30+ new patients per month tells a growth story.

Build Associate Coverage

A practice that depends entirely on the owner is worth less than one with associate depth. Even part-time associate coverage reduces key-person risk in a buyer's analysis.

Months 9–18: Eliminate Risk Factors

Reduce Payer Concentration

If significant revenue comes from one or two insurance plans, buyers see concentration risk. Diversify your payer mix — growing your fee-for-service percentage consistently commands higher multiples.

Address Facility and Equipment Issues

Deferred maintenance becomes negotiating leverage for buyers during due diligence. A $50K equipment replacement you defer becomes a $75K price reduction during negotiation.

Months 18–24: Go-to-Market Preparation

Prepare your Confidential Information Memorandum (CIM), time your launch after a strong performance period, and work with your advisor to identify the ideal timing based on trailing twelve months of performance and current buyer market conditions.