Common Mistakes to Avoid When Selling Your Dental Practice

Selling your dental practice is one of the most important decisions you’ll ever make. It represents years of hard work, investment, and patient relationships. But entering the process unprepared can result in lost revenue, unnecessary stress, and outcomes that don’t reflect the full value of what you’ve built.

At Dental Strategic, we’ve worked with dentists across the country to help them navigate every stage of the selling process. From early planning to final negotiations, we ensure our clients avoid common pitfalls and leave their practices in the right hands, on their terms.

Before you start your transition, take a moment to understand the key missteps we see most often and how you can avoid them.

This Article Will Address:

How far in advance you should plan for your dental practice sale
What mistakes to avoid when valuing your practice
Why timing matters and what to consider before selling too soon
What financial and legal records are required for a successful sale
How to identify the right buyer (beyond price)
What tax mistakes could cost you after the sale
Whether or not you should work with a broker—and the risks of going it alone

Mistake #1 – Not Planning Early Enough

How far in advance should I plan before selling my dental practice?

Many dentists wait until they’re tired or burned out to start thinking about a sale, but by then, your leverage and energy may already be declining. The best time to start planning is three to five years before your target exit. This gives you time to:

Strengthen your financial performance
Organize your records
Make any operational or cosmetic updates
Prepare staff for a smooth transition
Develop a tax strategy that protects your earnings

Working with a transition advisor early in the process can significantly improve your outcome. At Dental Strategic, we walk side-by-side with you, well before you’re ready to hand over the keys.

Mistake #2 – Not Knowing What Your Practice Is Worth

How do I determine the value of my dental practice?

One of the most common mistakes we see is relying on gut feelings or outdated rules of thumb to estimate value. Overpricing can drive buyers away, while underpricing leaves money on the table.

A formal valuation should consider:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
Collections and profitability trends
Overhead and operating expenses
Patient retention and referral data
Market conditions and buyer demand

At Dental Strategic, we help you understand and articulate your practice’s true value and support you in increasing that value prior to listing.

Mistake #3 – Rushing the Sale Without a Strategy

What are the risks of selling my dental practice too soon?

It’s tempting to sell quickly when life circumstances change, but selling without a strategy often results in lower offers, fewer qualified buyers, and limited options for your future involvement. Some of the risks include:

Accepting an offer out of urgency rather than alignment
Undervaluing your goodwill and patient base
Missing opportunities
Having little control over transition timelines

If you feel like you need to sell, that’s a signal to stop and seek guidance. Dental Strategic works with clients to create a roadmap that aligns with their personal and financial goals.

Mistake #4 – Not Preparing Financial and Legal Records

What financial and legal documents should be ready before listing?

Buyers expect transparency, and any delay in producing documents can raise red flags. You’ll want to gather and organize the following:

At least three years of financial statements and tax returns
Current lease agreements and equipment lists
Employee contracts and benefit summaries
Insurance production and billing reports
Licensure and regulatory documents

Our team will review these with you in advance to help eliminate roadblocks and ensure buyer confidence.

Mistake #5 – Choosing the Wrong Buyer

How do I choose the right buyer for my dental practice?

The right buyer isn’t just the highest bidder. They should be someone who respects your legacy and is capable of maintaining (or growing) the trust you’ve built with patients and staff. When evaluating buyers, consider:

Alignment with your values and patient care philosophy
Ability to secure financing and close on schedule
Plans for staff retention and transition
Willingness to keep you involved (if desired)

Dental Strategic helps you vet buyers holistically—not just financially—so you can feel good about your decision long after the sale.

Mistake #6 – Overlooking Tax Consequences

What are the tax mistakes dentists make when selling a practice?

Taxes can take a surprising bite out of your sale proceeds, especially if you don’t plan ahead. Many dentists make the mistake of not consulting with a CPA familiar with dental practice transitions. Key areas to consider include:

How assets are allocated (goodwill vs. equipment)
Capital gains taxes and how they’ll affect your net earnings
Options for retirement account rollovers
Whether to structure the deal as a lump sum or installment sale

We collaborate with your financial advisors to ensure you’re maximizing after-tax proceeds, not just top-line sale price.

Mistake #7 – Not Hiring Professional Advisors

Can I sell my dental practice without a broker?

Yes, you can—but should you?

While some owners are tempted to manage the sale themselves, it often leads to underperformance and unnecessary risk. A professional dental broker or advisor helps you:

Accurately value your practice
Market to the right buyers
Handle negotiations and let you know what is negotiable in a sale
Navigate legal and regulatory complexity
Manage confidentiality and timeline
Bring experience in how to get deals across the finish line

At Dental Strategic, we’re not just brokers, we’re partners in your success. We bring decades of dental industry knowledge and a proven system that supports you from first inquiry to final handshake.

Schedule a Consultation With Dental Strategic

By avoiding these common mistakes, you can protect your legacy, retain more of your hard-earned value, and ensure a positive experience for your patients, staff, and future self. At Dental Strategic, we understand the stakes because we’ve helped dentists across the country do this successfully.

Whether you’re five years out or ready to begin now, our team is here to support your journey with strategy, professionalism, and clarity. Schedule your confidential consultation today and take the first step toward a smart, seamless transition.

Sources

American Dental Association (ADA): “Guidelines for Dental Practice Transitions”
Watson Brown: “Top 5 Mistakes Doctors Make When Selling Their Dental Practice”