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Dental Practice Exit Planning

Sell on Your Terms, Not Theirs

You've spent decades building your practice. Don't let taxes and poor timing destroy the value in the final mile. Learn how to maximize your exit.

Get Exit Strategy Analysis View Exit Timeline

The Trap

"My Practice IS My Retirement"

We hear it from dentists every day. And it's the most dangerous financial assumption you can make.

The Reality Check:

Buyers discount for low margins (17% vs 25% standard)
Taxes take 20-35% of sale proceeds (Capital Gains + Recapture)
DSO consolidation is changing valuations

If you're counting on your practice sale to fund 100% of your retirement, you have zero leverage in negotiations. You have to sell, often on their terms.

The $2.8M Practice Reality

Your Expectation$2,240,000 (80%)

Buyer Offer (Low Margin)$1,680,000 (60%)

Taxes (Est. 25%)-$420,000

Net Proceeds$1,260,000

Is $1.26M enough to fund a 30-year retirement?

Common Pitfalls

Three Exit Planning Mistakes

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Waiting Too Long

Exit planning takes 3-5 years. Starting at 60 is starting from weakness.

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Single Exit Path

Relying solely on one buyer type or sale structure limits negotiation power.

⚠️

All Eggs in One Basket

Having 70%+ of net worth tied up in the practice is high risk.

The Strategy

Build Wealth Outside the Practice

The key to a successful exit is not needing the exit.

By building a tax-free wealth engine (Section 7702) alongside your practice:

You diversify risk away from the dental market
You have liquidity for opportunities or emergencies
You can negotiate the sale from a position of strength ("I don't have to sell")

The practice sale becomes the cherry on top, not the whole sundae.

With Section 7702 Strategy

Practice Value$1.5M

Tax-Free Cash Value$1.2M

Total Wealth$2.7M

Plus living benefits protecting you if you get sick or injured before the sale.

Roadmap

Exit Planning Timeline

Year 1

Assessment

Valuation, margin analysis, personal financial needs analysis.

Years 2-4

Optimization

Improve margins, systematize operations, build outside wealth.

Year 5

Execution

Buyer selection, negotiation, tax structuring, transition.

Questions

Dental Exit Q&A

Every practice is unique. Let's discuss yours.

Schedule Practice Analysis

Ideally 5-7 years before your planned exit. This gives you time to improve margins, clean up books, and structure tax strategies. At minimum, start 3 years before.

Typically 60-80% of annual revenue for general practices, but EBITDA multiples are becoming more common. Margins matter more than revenue. A $2M practice with 25% margins is worth far more than a $2.5M practice with 15% margins.

It builds tax-free wealth outside the practice. This "liquidity cushion" means you don't NEED the top-dollar sale price to retire, giving you leverage to walk away from bad deals.

It depends on your goals. DSOs often pay more but require you to stay on as an employee for 2-5 years. If you value autonomy, it might not be the right fit.

Don't Leave Your Exit to Chance

In a complimentary Exit Strategy Analysis, we'll evaluate your current practice value, personal readiness, and protection gaps.

Schedule Analysis Learn About Section 7702