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)