Selling a Dental Practice in Charlotte

Two Very Different Buyers Want Your Practice

Most dental practices around Charlotte end up with one of two kinds of buyer: an individual dentist who wants to own, or a dental service organization, usually called a DSO, that is adding offices.

A dentist buying a first or second practice usually finances with a lender, wants a clean handoff and plans to treat your patients personally. The price tends to be tied closely to collections and cash flow.

A DSO looks at the practice as an add on to a larger group. It may pay with a mix of cash and rollover equity, and it often expects you to keep practicing for a set period.

Neither is right for everyone. The best offer on paper may come with years of clinical work you did not plan on, so compare terms, not just the headline number.

Your Patient Base Is the Asset

Buyers start with the patients. They want to know how many are active, how many new patients come in each month and where they come from.

Hygiene recall is the quiet engine of a practice. A strong recall system keeps chairs full, feeds restorative work and shows a buyer that patients come back because of the practice, not only because of you.

• Active patient counts with a clear definition of "active"
• Recall rate and how far out the hygiene schedule is booked
• Production split between the owner, associates and hygiene
• New patient flow by source

Payer Mix Shapes the Margin

A practice heavy on PPO plans can be busy and still earn thin margins after write offs. A fee for service practice may see fewer patients and keep more of each dollar.

Buyers will review your plan participation, fee schedules and collections against production. Neither mix is wrong, but they lead to different valuations and different buyers, so know yours before the first call.

How Long You Stay After the Sale

Patients are loyal to their dentist. That is why almost every buyer asks the selling dentist to stay through a transition period, introducing the new owner and treating patients while trust moves over.

For an individual buyer, that might be a few months of part time work. A DSO deal may ask for several years of full time production, sometimes with pay tied to how the office performs.

Decide what you want your next few years to look like before you see an offer. Our page on succession planning can help you sort that out.

Associates Can Raise the Value or Raise Questions

A practice with associate dentists already producing shows a buyer that patients will see someone other than you. That lowers the transfer risk and can widen the pool of interested buyers.

Buyers will want to see associate agreements, compensation and how long each associate has been there. An associate who might leave, or who wanted to buy the practice personally, is something to address openly and early.

Equipment, Space and the Lease

Chairs, imaging, sterilization equipment and software all get reviewed. Older equipment does not end a deal, but a buyer will factor in what needs replacing soon.

The lease often matters more. A buyer and their lender will want enough remaining term, renewal options and the landlord's consent to assign it.

If you own the building, decide whether to sell it, keep it as a landlord or address it in the letter of intent.

Licensing and ownership rules for dental practices are specific, so have a healthcare attorney review the structure before you sign.

To see what buyers would pay, request your free, private valuation or call (704) 555-0187. Nothing is shared with your staff or patients.