Best way to sell a dental practice

Selling a dental practice can be a major life event. The business you will have invested in so heavily over the years will suddenly be out of your hands.

Selling a dental practice requires a lot of planning and administration. Sellers will want to ensure their practice is in a condition that appeals to potential buyers. They will also need to estimate the value of the practice.

This guide will walk through the main stages and considerations of practice sales. It will also explain how Christie & Co supports practice owners through the sale process.

Reasons for selling a dental practice

There are many reasons for wanting to sell a dental practice. These may include wanting to retire, being in poor health or wishing to relocate. In these situations, selling your practice makes a lot of sense.

However, some may feel that it is time to move on as things are not working out as intended. For example, you may have staffing issues or be unhappy with the level of administration. In these cases, selling up probably is not the answer. Other actions can be taken to improve your practice and make it thrive.

Selling a dental practice is a major decision, and your reason for doing so should be seriously considered. Buyers will also want to know why you are selling up – so make sure you have a good reason.

How long does selling a dental practice take?

The entire process of selling a dental practice can take several years. It is best to give yourself a run-up of around five years before you hit the market. This gives you time to prepare. You should use this time to ensure your practice is of a high standard.

Stages of selling a dental practice

There are many steps to take between deciding to sell your practice and completing a sale. The major stages are:

• Market appraisal
• Marketing
• Offer letter (heads of terms)
• Due diligence (done by the buyer)
• Completion.

Each of these stages will be addressed in more detail below. First, there are other areas to consider as well to make your sale successful.

Working at the practice after it is sold

An important issue to consider at an early stage is whether you are willing to continue working at your practice even after it is sold. This is usually determined by your buyer.

Corporates will usually require you to continue working for three to five years following the completion of the sale. This is so that they can have time to benefit from the revenue you bring in. It also gives them time to find someone to replace you. This will obviously delay whatever you plan to do next. If you were planning to retire, it means your final day of work will come several years after the sale.

If you sell to an associate or another third party, you may be able to retire immediately or after a shorter transition period.

When are you paid in full after selling a dental practice?

You are not likely to receive the full agreed amount at the time of sale. Instead, you will probably get around 60 to 70% of the payment upfront. The remainder will be paid several years later. This is known as deferred consideration.

The remaining sum will only be paid if the practice performs as expected after it is sold. As such, it will be tied to financial targets.

This benefits the buyer because it reduces their exposure to risk. It can also benefit the seller, as they may be able to demand a higher overall price for the practice.

The full price of the purchase is known as total consideration.

Refurbishments ahead of going on the market

It is important that your practice is at its best before it goes on the market. Potential buyers will be looking for a purchase that requires minimal further investment.

However, it is important to strike a balance.

For example, make sure your equipment is in full working order and the practice is clean and tidy.

But spending large amounts of money on refurbishments and new equipment will not necessarily lead to a higher sales price.

That’s because the value of your practice is calculated as a multiple of earnings before interest, tax, depreciation and amortisation (EBITDA). Spending extensively on renovations and the latest equipment would, therefore, most likely not be reflected in the sale price.

Selling a dental practice to a corporate or a dentist

Different types of buyers have different terms.

Most purchases are made by dentists themselves. And you are legally obligated to first offer your existing partners or associates the opportunity to buy the practice.

As mentioned above, corporate buyers will generally want you to work at the practice for several years after the sale.

Hiring a practice sale agent

A practice sale agent is not mandatory, but they will likely be of huge benefit. The sales process can be taxing. It can be easy to lose focus of your day-to-day operations while navigating the sales process. This can result in a drop in value.

Agents will have experience. There will be fewer surprises on the way. They can also help you to find an appropriate buyer using their own contacts.

Your practice is likely to sell for more money with their help.

Keep staff informed

Keeping your staff informed of your decision to sell mitigates the risk of harm to your team’s morale. Be clear with your staff about the process and the implications for them.

This is important for several reasons. First, as a good employer, it reduces unnecessary stress and uncertainty among your team. A byproduct of that is that staff will remain happy and productive, making your practice more appealing to buyers.

The sale might also be conditional on some of your staff remaining in position. Keeping them informed in the process will make retention more likely.

Process of selling a dental practice

After you have taken all of the above into consideration, it is time to get the process in motion. For this, we will return to the six main stages of the sale.

Market appraisal

The market appraisal of your practice is an important part of the process. Buyers will make offers based on the original valuation.

The value of your practice will be unique and will require careful calculations. In order to get the best price, do not leave valuation to the potential buyer. This can often be the case when selling to corporates.

The value of your practice will be calculated based on EBITDA. This gives an overview of your practice’s operational performance and its potential to generate income.

The best way to get an accurate picture of your practice value is through maintaining accurate financial records. This should be standard practice, so make sure all work is properly invoiced using your practice software, for example.  

Your management accounts will be vital in calculating the accurate value of your practice. If everything has been recorded accurately, it also helps to differentiate between management costs and personal costs.

Good record keeping also shows that you are an efficiently run business. This will make it more attractive to potential buyers.

If a buyer makes an offer, they will then move on to the due diligence stage. If, at that point, inaccurate records are discovered, they may be unwilling to pay their original offer price. Lengthy negotiations may follow, and you could face a reduced price or even the sale falling through.

Marketing your practice

It pays to market your practice to a wide audience. You want to find a buyer who will pay a good price and, potentially, has a similar ethos.

You can use advertising, online forums and your own contacts to find the right buyer for you. Just be careful about how much information you share about your practice.

This is an area where a skilled sales agent can be especially useful.  

Offer letter

An offer letter, or head of terms, sets out criteria that need to be met for the sale to go through. It may demand that the levels of staff costs, rent and turnover are maintained until the due diligence stage takes place, which may be several months later.

It is important to let the buyer know of any changes you make to the practice during this term and seek their approval. That might be changes to contracts or increasing staff numbers. Otherwise, they may feel that the deal is no longer viable and drop out or reduce the price.   

Due diligence

Due diligence is the stage at which the buyer collects information about the practice they want to buy. It helps to be able to provide them with the information requested as quickly as possible. This speeds up the process and increases buyer confidence.

It can take anything from a couple of weeks to several months for a buyer to complete due diligence. The length of time can usually be shortened if you have put the work in beforehand.

Documents they will want to see include:

• CQC registration information
• Inventory
• Compliance documents
• Financial records
• Patient records
• Supplier contracts
• NHS pay statements
• Employer documents.

Completion

The process is complete after due diligence and any negotiations or alterations arising from it. The sale will be settled. Don’t forget to tell the Care Quality Commission about the sale. You may now need to continue working for some time or move on to the next chapter of your life.

Buying guide

Christie & Co

Christie & Co is the market-leading expert property adviser in the UK and Europe for advising on, buying, selling and providing valuations of businesses in its sectors. These include hotels, pubs, restaurants, childcare, healthcare, convenience retail, leisure and medical.

Regulated by the Royal Institution of Chartered Surveyors (RICS), Christie & Co works to the highest professional standards. Its ‘whole of market’ approach ensures that the businesses it sells are offered to a range of quality buyers. This maximises value for clients. No buyer registration fees or ‘preferred’ buyers means that clients receive the best advice.

Christie & Co’s consultancy, advisory, marketing and support teams provide expert advice. It maintains personal relationships with key trade buyers, together with private equity companies and other investors that are active across all its sectors. Its regional office network assures detailed knowledge of local markets and a wide network of contacts to find the right buyer.

Christie & Co has 11 offices across the UK. Its regionally based experts can access the widest possible pool of buyers and leverage longstanding personal relationships to:

• Provide the best advice
• Drive maximum returns
• Deliver a smooth process with the right buyers.

This extensive reach is fully integrated using its Salesforce CRM system. This allows Christie & Co to run highly complex processes and provide accurate, real-time reporting.

Trusted and tailored advice

Christie & Co is the only company accredited by the Royal Institution of Chartered Surveyors (RICS) to sell and value UK dental practices. It holds a unique position to provide clients with precise and tailored advice.

Christie & Co sells hundreds of trading businesses each year, including dental practices. These range from the smallest independents to large corporate portfolios.

The company is committed to excellence. It is guided by its RICS accreditation.

Christie & Co in numbers 2025

• Advised on, agreed or sold 716 practices with a combined value of £860,930,667
• Brought 205 practices to market
• Arranged 562 viewings
• Received 330 offers
• 6.7% increase in deals agreed compared to last year.

Expertise

Christie & Co has the knowledge and experience to navigate the challenges of the dental market. It is fully compliant with all industry standards.

Its extensive networks in the UK mean that Christie & Co can provide expert insight at national, regional and local levels.

Christie & Co offers unparalleled professional services. These include:

• Dental practice sales
• RICS-related valuations
• Commercial due diligence
• Lease advisory
• Brokerage
• Financial solutions.

What Christie & Co offers – stage by stage

Stage 1: planning ahead for your sale

Start early stages of exit planning

As a practice owner, you may have an approximate exit date in mind. It makes sense to take professional advice well in advance of that date. This ensures you are fully aware of all the financial and commercial implications of your sale. Many clients contact Christie & Co months or even years in advance of a potential sale. The team are always happy to chat with practice owners about the current market, even if the time is not quite right to sell.

Conduct an initial appraisal

One of the most important considerations is to arrange an accurate and realistic assessment of the worth of your practice. Your Christie & Co agent will visit the business at a time to suit so that they can understand your objectives. They can then provide a detailed appraisal of the practice. This is based on trading and operational information and their own experience of selling similar businesses to yours.

Adding value to your business

There may be opportunities for you to enhance your practice’s saleability and attractiveness to potential buyers. Through a thorough evaluation of your business, Christie & Co will advise you precisely where these opportunities are.

Keep abreast of the market

Your agent will remain in touch with you after your initial meeting. They will update you on market changes and relevant business sales in your sector and area. Christie & Co can also amend its appraisal if there are material changes to your business at any stage.

Understand who’s buying

It is often important to business owners to whom their business is sold to. Christie & Co can advise about the different types of buyers in the market (independent, small groups, corporates). It will also explain the pros and cons of each to help you decide which fits your business best.

Marketing strategy

Christie & Co will advise you on the optimum time to market your business, likely buyer types, the time it will take to sell and approximate sale price. An appropriate strategy will be agreed to suit your requirements. Once you’ve instructed Christie & Co to progress, the team can speak with your accountant and solicitor. 

Stage 2: On the market

Prepare the business for sale

Once you are ready to sell, it is vital to be fully prepared to go to market. Christie & Co will prepare an in-depth marketing report to present your business in the best possible light. The team will also prepare a pack of supplementary information to provide the interested parties.

Launch the business for sale

Once everything is agreed, it is time to launch the business for sale. This can be explicit or confidential, depending on your requirements. Christie & Co makes direct approaches to its contacts in the sector who is seeking businesses similar to yours. It provides them with information and answers for any initial questions.

Managing viewings

When interested buyers wish to view the business, Christie & Co will brief you on their background and the reason they are interested. Their colleagues at Christie Finance will ensure the party has the necessary financial resources.

When you show an interested party around, it is always good to accentuate the positives. However, do not be afraid to point out areas where you feel the business could be improved. These represent opportunities for a potential new owner.

Viewing feedback

Following a viewing, Christie & Co provides and asks for feedback from the prospective buyer. If they are genuinely interested, further information is provided to them to enable them to formulate an offer.

Review offers

Once a serious buyer has viewed the business (often more than once) and reviewed the further information provided, they may make an offer. This will be reported to you in writing with evidence of the buyer’s financial position.

Christie & Co will carefully review any offer conditions and advise you on the strength of the offer. This means you can make a fully informed decision. It is often helpful to include your solicitor and accountant in these discussions. This helps to ensure you have considered all legal and financial angles. Christie & Co will take time to discuss the merits of the offer with you. You or your team will never be put under any pressure to accept an offer.

Conclusion

Selling a dental practice can be a complicated process with many hidden pitfalls. Even if the process goes relatively smoothly, it takes a large amount of time and commitment to get the best price.

This guide has talked through many of the steps involved in selling a dental practice. It has also explained how Christie & Co can support practice owners through the process.

Taking the time to get it right and calling on advice when needed will ensure a smooth sale for the maximum amount.