How to sell your dental practice

If you’re a principal dentist, dental company or practice owner, you’ll likely look to sell your practice or share in the business at some point.

This could be due to a company divestment, retirement or there may be events forcing a sale, such as a partnership dispute.

Many dentists underestimate how complex the process of selling a dental practice can be, from valuations and compliance paperwork to negotiating terms with a potential buyer.

By understanding the steps involved, you can reduce delays and maximise the value of your practice.

Preparing to sell your dental practice

Timing a sale isn’t an exact science, especially given economic uncertainties and unforeseen events. But being ‘sale prepared’ gives you an advantage if circumstances change, positive or negative, and affect your preferred time for sale.

The process of selling your practice and what comes next might feel daunting or complicated, particularly if you haven’t done it before. But potential complications can be resolved in advance and the process can run smoothly if your business has up-to-date contracts, documents, procedures and protocols in place.

For example, compliance documents may have been overlooked, such as property-related EPC and PAT certificates or fire risk assessments; your property’s lease may not have been renewed, or even implemented; or you might be paying for unused or underutilised services that could be cancelled.

If documents are outdated, missing or overlooked – such as SOPs (standard operating procedures), employment contracts or CQC registration for the correct provider – this can delay the sale, impose obstacles or, at worse, damage the buyer’s or lender’s confidence in the practice. In some cases, this may even lead to the buyer delaying or withdrawing from the transaction or their lender withholding funding.

A comprehensive review of your documentation and compliance can reveal issues, even minor ones, that could disrupt the sale. It’s worth giving your practice a ‘health check’ from time to time to make sure it’s running with all the necessary documentation in place.

Fixing problems prior to a proposed sale will prevent delays when it comes to sell. It may even improve the practice’s financial performance and prospects so when the time comes to sell, you’ll stand out from the competition.

Finding a buyer for your dental practice

The market is competitive, with demand from both corporate groups and private buyers.

Start by getting an independent valuation from a specialist dental practice valuer. This gives you a realistic benchmark of what the practice is worth and helps you assess your options. In some cases, you may even be able to take steps to increase the value of your practice before moving forward.

When you’re ready to find a buyer, you can choose to work with a specialist dental agent to market your practice and introduce you to potential buyers. Alternatively, you may already have a buyer in mind – perhaps an existing associate within your practice, or a dental corporate group targeting your practice for acquisition.

Selling your dental practice

Once a buyer is identified, you’ll need to assemble your specialist advisory team. Selling a dental practice can be complex and time-consuming, so it’s vital to engage an experienced lawyer and accountant who specialise in dental transactions. They’ll guide you through the process, protect your interests and negotiate on your behalf. You should also inform your accountant of your plans and consider speaking to a financial adviser to help you prepare for life after completion.

Start collating detailed information about your practice to prove due diligence, including financial records, staff details, NHS contracts and compliance documentation. Preparing these early streamlines the transaction and reduces delays caused by missing or incomplete documents. Outstanding items can be resolved in advance, minimising follow-up due diligence queries from the buyer. Working closely with your practice manager or another trusted team member can make this stage more efficient.

By taking these steps early, you’ll be better prepared, reduce your stress and lay the groundwork for a smoother, faster sale.

With the right guidance, selling your dental practice doesn’t have to be overwhelming. By working with experienced advisors and preparing key documents early, you can focus on what matters most – securing the right deal for you, your staff and your patients.