The three most common beliefs about timing a dental practice sale – that sellers are near retirement, that value can’t be improved quickly, and that no real preparation is needed – are all wrong. Each one leads dentists to act late, leave money behind, or enter the market unprepared. Here’s what the data from actual transactions shows.
Myth 1: Only Retirement-Age Dentists Sell Their Practices
Reality: Most of PTG’s clients are in their 40s. They sell for strategic reasons – not because they’re done practicing, but because they’ve built something valuable and the conditions are right to monetize it.
“The worst time to sell a practice is the day you want to walk out the door. When you figure you got five to ten years left, that’s when you should start thinking about it,” said Dr. Bert Vasut.
Today’s dental M&A market has made it possible for practice owners at different career stages to transition. Dentists sell to diversify their financial holdings, reduce administrative burden while continuing to practice clinically, relocate or respond to personal life changes, take advantage of DSO and PE activity before the market shifts, and transition to associate status for a better work-life balance.
The assumption that you need to be nearing retirement to consider a sale is the most common reason dentists wait too long.
Myth 2: You Can’t Meaningfully Increase Practice Value in One Year
Reality: Several specific strategies can improve a practice’s EBITDA – and therefore its valuation multiple – within 12 months.
Corporate buyers pay a multiple on EBITDA (earnings before interest, taxes, depreciation, and amortization). That means even a modest improvement – 10 to 15 percent – translates directly into a materially larger offer. Here’s where to focus:
Optimize staff utilization. Maximize dental assistant capabilities within legal scope. Delegating tasks that don’t require chair time improves throughput without adding overhead.
Improve collections. Collecting upfront payments and deposits on scheduled procedures reduces accounts receivable and improves cash flow – both factors buyers use to assess practice health.
Improve scheduling. Time-blocking high-value procedures and new patient appointments increases production per hour. Higher production with the same overhead means better EBITDA, which means a higher multiple at any given revenue level.
“Reviewing the numbers with Thomas and going through the whole process of the sale, I became really proud of myself. I never gave myself that pat on the back before,” said Dr. Alice Bui.
Myth 3: Practice Sales Don’t Require Long-Term Planning
Reality: The most successful transitions PTG handles begin 3-5 years before the owner intends to close.
That’s not because the process takes that long. It’s because preparation time changes what’s possible when you reach the table.
Clean, well-organized financials command better terms. Understanding the buyer landscape before you’re under pressure means you’re not guessing at whether an offer is fair. A clear strategy prevents reactive decisions to unsolicited DSO offers. And aligning your practice’s trajectory with your personal financial goals takes time to build deliberately.
Starting the conversation 3-5 years out doesn’t commit you to a sale. It means when the market is right – or when an offer arrives – you’re negotiating from strength, not scrambling.
What the Best Time to Sell Actually Looks Like
The practices that sell well share four characteristics. They show consistent growth. The owner has clear financial goals established with their CPA. They’re selling from a position of strength, not burnout. And they’ve had time to evaluate multiple transition options – not just the first offer that showed up.
There’s no universal ideal year to sell. The best timing is when all four of those conditions are in place simultaneously. Understanding what drives your practice’s value is where that assessment begins.
FAQ
What is the best age to sell a dental practice?
There’s no ideal age. The right time is when your practice is performing well and you have a clear picture of what comes next. PTG works with practice owners in their 40s, 50s, and beyond. The common thread among those who get strong outcomes is that they sold from a position of financial strength and personal clarity – not urgency or exhaustion.
How long does it take to prepare a dental practice for sale?
A well-prepared practice can move to market in 3-6 months. But the sellers who see the best outcomes typically begin working with an advisor 3-5 years before the intended close. That lead time allows for financial optimization, strategic positioning, and deliberate evaluation of buyer options.
Can I increase my practice’s value before I sell?
Yes – and in most cases, the improvements are achievable within 12 months. The highest-impact levers are EBITDA improvements: better collections, staff utilization, and scheduling efficiency. Since corporate buyers pay a multiple on EBITDA, even modest improvements translate directly to a higher offer.
What do buyers look at besides revenue when valuing a dental practice?
EBITDA is the primary driver for corporate buyers. Beyond that: staff stability, patient retention, payer mix (fee-for-service vs. insurance), physical facility condition, and growth trajectory all factor in. A practice with strong revenue but poor collections or high turnover gets a lower multiple than a cleaner operation at similar revenue.
Start With a Baseline
See where your practice stands today. Our dental practice valuation calculator gives you a baseline in minutes. When you’re ready to talk through what a sale process could look like, we’re available.
