Retire Smart: 10 Must-Do Steps Before Selling Your Dental Practice

Retirement isn’t what it used to be.

Today’s retiring dentists are just as concerned about legacy and lifestyle as they are about finances. For many, their practice isn’t just a business; it’s a reflection of decades of clinical expertise, community service, and personal relationships.

So, how do you let go of something you’ve built with your own two hands? Whether you’re 40, 55, or 70, selling a dental practice is one of the most emotionally charged and financially impactful decisions of your career. 

This post outlines 10 practical, psychology-informed steps to guide dentists through a successful transition, avoiding regret and maximizing both value and peace of mind.

1. Begin with Emotional Readiness, Not Just Numbers

Most dentists focus on spreadsheets when they should start with their own story.

“Are you retiring from something (burnout, stress, physical limitations) or toward something (more travel, grandkids, volunteering)?”

Your motivation matters.

Retirement isn’t just an economic shift; it’s a psychological one. Dentists are high-achieving, schedule-driven professionals, and many approach retirement already feeling the effects of dentist burnout. Suddenly losing that structure can trigger boredom, aimlessness, or in some cases, even depression. Clarifying your post-retirement identity is critical before you sell.

2. Assess Your Practice Like a Buyer Would

Too many sellers look at their practices with nostalgia. Buyers look with calculators. Evaluate your practice’s real market value through KPIs (key performance indicators) collections, adjusted accounting entries such as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), new patient flow, hygiene recall percentage, and technology adoption. 

“Is your production propped up by heroic hours and personal charisma?”

That’s not transferable.

Work with a consultant who specializes in dental practice transitions, along with a broker and CPA who understand dentistry.

3. Clean Up the Financials

Messy books kill deals. Before listing, streamline your financials. Remove personal expenses from business ledgers, reconcile accounts, and ensure taxes are up to date. Buyers and their lenders need to see clarity, not creative accounting. Also, begin preparing three years’ worth of profit and loss statements, tax returns, and a production summary by provider. Transparency builds trust.

4. Evaluate Timing Through a Strategic Lens

Sell too early, and you might leave money on the table. Sell too late, and production may drop, decreasing your value. A healthy dental practice typically sells for a multiple of earnings. The “sweet spot” to sell is often when collections are stable, you’re still active clinically, and you have a year or two to assist in transition if needed. Don't wait until you're burned out. The best deals happen when you still enjoy dentistry.

5. Tidy Up the Physical Space

Your clinical skills don’t matter if the practice looks outdated. Paint the walls, replace worn-out chairs, and upgrade the lighting. And if your front desk still runs on Windows 7, it’s time to modernize. While you don’t need a complete renovation, the physical impression of your office plays a significant role in buyer interest and patient retention after the sale. The Real Estate people call it curb appeal.

Bonus tip: Remove personal photos and diplomas before buyer tours. Help them see their future in your space.

6. Prepare Your Team in Advance

Staff can make or break a transition. Goodwill is often tied to the relationships between hygienists, assistants, and patients. But transitions breed insecurity and confusion, so timing your communication is key.

Once the sale is imminent (but not premature), involve key team members. Help them see stability, not upheaval. Your buyer wants to retain staff and patients; your role is to pave the way for trust.

7. Clarify Patient Retention Strategy

Patients don’t like surprises. They like their dentist. To minimize attrition, the transition should be framed as a continuation, not an end. A personal letter to patients introducing the buyer, a photo together, and a warm handoff in person goes a long way in maintaining goodwill.

In many cases, it’s wise to stay on for a limited period to ease the handover. This can be included in your sale contract and may even increase the price.

8. Know Your Buyer: Corporate vs. Private

Today’s market has shifted. DSOs (Dental Service Organizations) are buying practices aggressively, but not every seller wants that model. A DSO might offer a higher upfront check, but with strings attached, like earnouts or employment clauses.

A private buyer may offer less initially but bring continuity and a more personal relationship. The best deal isn’t always the biggest check. It’s the one that fits your values and retirement goals.

9. Don’t Skip Legal and Tax Advice

A dental practice sale includes assets, contracts, lease agreements, and potentially stock transfers. It’s complex. Hire a dental-specific attorney who knows the industry. They’ll help with:

And don’t forget your CPA. The way your sale is structured can dramatically affect how much you keep after taxes. Asset sales, stock sales, and goodwill allocations get clear guidance early.

10. Plan for What Comes After

The biggest post-sale regret dentists express. “I didn’t know what to do with myself.” You’ve spent decades solving problems, connecting with patients, and leading a team. Suddenly . . . crickets.

Some dentists revel in the vacation mentality and cultivating the “art of doing nothing”. Others are constantly looking at their watch, wondering when the next patient is going to arrive.

Many of us have a low-resolution image of what retirement is going to look like. Best to have the highest resolution possible.  Why settle for 480p when you can have 4K ULTRA?

Retirement should be more than an escape. Begin designing your next chapter, consulting, teaching, mentoring, traveling, or pursuing that interest or hobby that’s been on the back burner for all these years. Don’t let retirement happen to you. 

Be intentional!

Final Thoughts

Selling your dental practice isn’t just a transaction. It’s a rite of passage. Done well, it affirms your legacy, secures your financial future, and opens the door to a meaningful next chapter. Done poorly, it can leave money on the table and emotional closure undone.

By taking the right steps early, working with the right professionals, and preparing both yourself and your practice, you can retire on purpose with clarity, confidence, and even a touch of celebration.

Visit LegacyTransitionsLLC.com or email Ron at Ron@legacytransitionsllc.com.