Practice Sales Intelligence 2023

Henry Schein Dental Practice Transitions is the leader in transition planning, sales and valuations, and buyer representation.

Buying and selling a dental practice, hiring an associate, and taking on a partner are all important decisions you will face during your career as a dentist.

You can trust Our Transition Sales Consultants to guide you through every stage of your career. They provide the advice and expertise you need to help you choose the transition option that’s best for you.

Early Career Support

Do you want to buy into a practice, purchase an existing dental practice, or start a practice of your own?

What impact will school loans have on your ability to purchase a practice?

Should you accept an Associateship that doesn’t include ownership provisions? Take advantage of our dental transition consulting—we’ll help you sort through the options and help you navigate Henry Schein dental practices for sale.

Practice Growth Support

Need help deciding whether to bring on an associate or partner?

Need guidance on whether it’s time to open another location?

Is your exit strategy up-to-date?

Our dental consultants help you formulate a plan that protects your professional and personal interests and grows your practice during your peak earning years.

Retirement & Contingency Planning Support

Ready to sell your practice today?

Just beginning to investigate your retirement options?

We’ll help you develop a smart exit strategy plan and identify the best time to sell your dental practice, whether that time is now or five years from now. We’ll work with you to maximize your practice’s value to best meet your retirement goals.

www.henryscheindpt.com

Anatomy of a Dental Practice Transition

Selling a dental practice is a complex process that involves far more than finding a buyer and closing the deal. It requires solid advice and sound guidance.

Practice One: West Coast

Sale Price: $580,000

Gross Revenue: $680,000

Features: Digital X-rays, I/O Camera, Panorex, Laser

# of Ops: 4 Ops

Type: General Dentistry

Property: Lease

Practice Location:

During the marketing period we had over 50 inquiries into the practice. Eleven individuals came to our first week of showings—including the eventual buyer. Nine offers were submitted on the practice and the eventual purchase price was over the asking price.

This well-established California practice was located on the first floor of a medical professional building. The practice was on a major thoroughfare—with many restaurants and large retail stores nearby. It had great visibility, street signage, a private entrance and ample free parking. The 1,400 square foot office had four operatories and had been owned by the seller for over 20 years.

Type of Practice:

This was a general dentistry practice and most of the specialty work was referred out. Approximately 45% of the revenue was generated by restorative work and crown/bridge— including implant restorations. The practice had computers in every operatory and digital X-rays, and Panorex. The practice had 3 fully booked days of hygiene per week. This was a well performing office with a lot of growth potential.

Financials:

The practice consistently collected well over $600,000 a year with over $250,000 in cash flow. The PPO and fee for service office had almost 900 active patients and averaged 3 new patients per month.

Reason for Sale:

After 20 plus years of practice ownership, the selling doctor was ready to step back from the responsibilities of running a dental practice and have more free time to spend with their family and travel. The seller still enjoyed clinical dentistry and continued to work part-time, as an associate, in the practice.

Purchase Price: $625,000 ($45,000 over asking)

Practice Two: East Coast

Sale Price: $880,000

Gross Revenue: $1,100,000

Features: Digital, 2D Pan & Paperlesss

# of Ops: 5 Ops

Type: General Dentistry

Property: Lease

Practice Location:

Affluent area in Nassau County, Long Island. The space was 2,100 square feet leased space in a professional building. The lease only had one year left so we had to negotiate a lease extension to match the loan term.

Type of Practice:

High-end General Dental practice that was 90% fee for service. The challenge was the practice grossed $1.1M on a 2 day work week. This reduced our buyer pool to only the best and most productive dentist in the area. The seller had multiple offers and elected to choose the most talented dentist that can continue the best possible care for his patients.

Financials:

The practice prior to the pandemic was open 3 days a week and consistently did over $1M in revenue. After the pandemic the practice only opened two days a week and maintained revenue of over $1M. The financials were on one tax return, so we had to separate both locations’ financials and value this location by itself.

Reason for Sale:

The seller has two offices and elected to sell one of them so he could spend more time with his family.

Purchase Price: $820,000

Planning

Practice Three: East Coast

Sale Price: $1.3M

Gross Revenue: $1.4M

Features: FFS, Low Overhead, Panorex (film)

# of Ops: 6 Ops

Type: General/Restorative

Property: Lease

Practice Location:

A successful practice transition is not always about the numbers –it often is also about the “match”. In this case, finding the proper individual was vital to the success of the transition and future of the practice. It took resources and expertise to make that connection.

This Florida dental practice was owned by the Seller for approximately 25 years prior to transition, operating out of 6 operatories in roughly 3,000 square feet of space. The office resided in a professional building in a more rural but growing area of the city. There was ample parking and possible opportunity for growth, or relocation in the future.

Type of Practice:

Focused on restorative, crown and bridge procedures, the Seller referred out some specialty work but had a wide mix of services, which suited the community. The practice operated on a four day per week schedule, with strong new patient flow and full hygiene schedule over the course of the week (two hygienists and eight hygiene days). Patients were primarily fee-for-service (cash/credit) with some utilizing “out-of-network” insurance. The staff was well trained both clinically and in practice management which allowed for the practice to run efficiently (both operationally and financially). Technologically, the practice was computerized but utilized paper charting and film radiography. Equipment was well maintained and functional but roughly 25 years old.

Financials:

With year-over-year recent collections growing within the 3 years produced and analyzed, there was a balance between crown and bridge restorative and hygiene department generated production, yet significant room for growth in preventative care. Some specialty work was referred out of the practice leaving additional opportunity for a purchaser to continue to develop additional revenue sources into the future, while supporting the maintenance of the practice’s make-up as is with expected strong profitability due to properly managed overhead.

Reason for Sale:

After a long career in practice, the seller was ready to step away from clinical dentistry, retiring to spend time with their growing family while enjoying various non-dental hobbies.

Purchase Price: $1,265,000

Practice Four: Central

Sale Price: $2M

Gross Revenue: $1.6M

Features: 8 Ops, Digital, paperless, updated technology, Great location

# of Ops: 8 Ops

Type: General Dentistry Practice

Property: Seller-owned property

Practice Location:

This practice is located in a highly desirable suburb of Cleveland, OH. The practice has been in this location for 40+ years and the seller has owned the practice and real-estate for the last 19 years. It is a stand-alone building with an apartment. Practice owner rents out upstairs, situated downtown on a corner lot off the major road that runs through the city The practice occupies 4,000 square feet with 5 newer ops that were added on after his purchase of the practice. The area is well-established and has free parking across the street.

Type of Practice:

The practice primarily focuses on preventative, restorative, and crown and bridge work, with most specialty procedures being referred out. The office is majority PPO and 25% FFS. The office is open 5 days per week and has one full-time associate. Also has 4 full-time hygienists and 2 assistants working a total of 18 hygiene days per week. The hygiene production alone made up over 40% of the revenue. Most of the staff were long term employees that were very well trained both clinically and in practice management. The seller was able, and is still able, to take considerable time off throughout the year and do what he loves most, traveling with his family.

Financials:

Practice consistently has performed well year over year, bringing in collections north of $1.4M with 2022 being one of the best years at $1.6M. Discretionary income was over $430K/year.

Reason for Sale:

To retire early and sell to a DSO for a premium. The practice owner wanted a better work-life balance and to enjoy the fruits of his labor that he had put in over all these years.

Purchase Price: $2M (rolled over some of the purchase price into equity in the DSO-expected to receive 4X investment in the next 5 years)

Why

It is the dental practitioner’s sole responsibility to accurately complete all necessary steps. Henry Schein representatives are available to provide information and support throughout the process; however, all steps and submissions must be taken by the dental practitioner. Each practitioner is obligated to verify the accuracy of all submissions, claims, and other information. Henry Schein provides no guarantees of practitioner eligibility, insurance coverage, or insurance payments.

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