When Should I Sell My Dental Practice?

Introduction

After working on thousands of dental practice transitions—including practice sales, acquisitions, family transfers, estate sales, divorces, partnership formations and dissolutions, and DSO transactions—I can confidently say that the answer to “When should I sell my practice?” is highly personal.

Contrary to popular belief, the answer isn’t determined by your age or the number of years you’ve been practicing. Instead, it depends on your personal goals, lifestyle, financial objectives, and what you want the next chapter of your life to look like.

Some dentists continue practicing because they simply love dentistry. Others continue because the practice has become more of a hobby than a business. Some are motivated by travel plans, family commitments, or simply wanting to retire while they’re still healthy enough to enjoy life.

From a financial standpoint, however, timing matters. Revenue trends, profitability, hours worked, patient volume, treatment mix, and overall practice performance all influence the value of your practice. Ideally, you should sell while your practice is still performing well—not years after it has begun to decline.

If you still enjoy treating patients but dislike the business side of ownership, there are creative transition strategies that allow you to continue practicing after selling your practice. Speaking with Lou Bermudez before making any decisions can help you understand options that many dentists never realize are available.

Many dentists tell Lou, “I still love dentistry—I just don’t enjoy running the business anymore.” The good news is that you may be able to accomplish both goals: sell your practice while continuing to work on your own terms.

Signs It May Be Time to Consider Selling

Every dentist’s situation is different, but many practice owners begin considering a transition when they experience one or more of the following:

• Feeling overwhelmed as the sole financial responsibility of the practice.
• Wanting relief from administrative and management responsibilities.
• Declining profitability.
• Increasing staffing and overhead costs.
• Wanting more time for family, travel, or hobbies.
• Feeling limited by operating the practice alone.
• Growing frustration with insurance companies and regulatory requirements.

While any one of these challenges can be stressful, together they often reduce both practice enjoyment and long-term practice value.

You May Not Have to Stop Practicing

Imagine selling your practice, receiving the proceeds from the sale, and continuing to work two days a week in the same office without worrying about payroll, overhead, staffing, production goals, or administrative responsibilities.

For many dentists, this type of transition provides the ideal balance between financial security and continuing to practice the profession they love.

What Happens When You Contact Lou Bermudez?

The process begins with a confidential conversation focused entirely on your goals and circumstances.

1. Lou will confidentially discuss your current practice and future plans.
2. He will request basic financial information to better understand your practice.
3. He will personally meet with you after office hours to review available transition options, including potential working arrangements after the sale—all at no cost or obligation.

Start Planning 12–18 Months Before You Want to Sell

One of the biggest mistakes dentists make is waiting too long to begin planning their transition.

Ideally, you should begin preparing 12 to 18 months before your anticipated sale. This allows time to organize financial statements, improve profit and loss reporting, address tax planning, review lease obligations, strengthen staff retention, and position the practice for maximum value.

If your collections have already begun declining, important staff members have left, or your practice has moved beyond its peak years, those factors can reduce both the selling price and buyer interest.

Buyers Focus on Recent Performance

Most lenders evaluate the previous two to three years of financial performance when financing a practice acquisition.

Buyers are interested in your current trajectory—not what the practice achieved ten years ago. Even if reduced collections are simply the result of taking more vacation time, lower production often translates into a lower practice valuation.

The message is simple: don’t wait too long.

The Best Time to Sell Is During Your Plateau Years

The right time to sell isn’t determined by reaching a specific birthday or milestone. It’s about recognizing where your practice is in its business lifecycle and planning strategically.

Dentists who begin planning while their practices remain stable, profitable, and growing typically achieve the strongest financial outcomes. They maximize the value of their practice while preserving the opportunity to continue practicing in a less stressful environment if they choose.

Talk With Lou Bermudez

Planning a transition doesn’t obligate you to sell. It simply gives you information, perspective, and options.

Lou Bermudez believes in education—not sales pressure. With more than 40 years of experience in dental practice sales and appraisals, he’ll help you understand your options and create a roadmap based on your goals and timeline.

Call Lou Bermudez at (818) 519-8564 for a confidential conversation about your practice and begin planning your transition before timing begins to affect your practice’s value.