By Rod Strickland, DDS

As dentists, we invest years of hard work and dedication into building practices that reflect our personal philosophies and professional values. When the time comes to sell, the journey can feel daunting. I understand this firsthand because I’ve been there myself.

My name is Dr. Rod Strickland, and as a retired dentist who has bought and sold multiple practices, I know how important it is to navigate this process with clarity and confidence. Now, as part of Legacy Practice Transitions, I work alongside a team that has been guiding dentists through transitions for over 35 years, completing more than 1,800 successful sales. Together, we’re here to help you embark on this critical step with care, professionalism, and expertise.

One of the most frequent questions I hear is: “How does selling my practice work?”  To answer, let’s dive into the anatomy of a dental practice sale and explore the key steps involved.

Step 1: Are YOU Ready?

The first and perhaps most crucial step is determining whether you’re mentally, emotionally, physically, and financially ready. Selling a practice is not just a financial transaction; it’s a personal journey and a fulfillment of a lifetime of hard work.

At Legacy Practice Transitions, we start with an in-depth interview to learn about you, your clinical philosophy, and your goals. Your practice reflects who you are, attracting patients and staff who align with your values. Understanding these elements helps us find a buyer who will continue your legacy seamlessly.

We also provide a comprehensive practice evaluation to help you determine your financial readiness. This report assesses your practice’s fair market value, equipping you to collaborate with financial advisors to prepare for retirement. If you’re not financially ready, we can develop a customized plan to help you achieve your goals. For instance, you still might want to sell the practice now, relieving yourself of management responsibilities while working back for the new owner, or you may decide just to wait to sell. Either way, our Legacy Protection Plan keeps your annual evaluation up to date at no extra cost until you’re ready.

For emotional readiness, we involve you and your spouse to explore what this transition means for your life. Some dentists are eager to move forward with retirement plans, while others may feel apprehensive about leaving behind what has defined their professional identity. For those who aren’t ready to walk away entirely, we can craft strategies such as selling and staying on as an associate.

Step 2: Preparation and Valuation

Understanding the value of your practice is crucial. Our proprietary and comprehensive evaluation considers over 30 variables, from financial performance to market trends and location, giving you a clear picture of its worth.

Additionally, we offer the Legacy Protection Plan—an annual evaluation service for dentists who may be several years away from selling. This proactive approach helps you prepare for the future, allowing you to make informed decisions well in advance. For a one-time fee, we prepare an evaluation of your practice and will update it every year for as long as you own the practice.

Step 3: Listing and Marketing

We’ll formalize the process with a listing agreement once you’re ready to sell.

• Buyer Pool Access: I maintain an active pool of buyers in every region where I work. When a listing agreement is signed, I immediately contact these potential buyers.
• Confidential Marketing: Protecting your identity is critical. We market your practice confidentially, requiring all prospective buyers to sign non-disclosure agreements (NDAs) before accessing any details. We use our proprietary marketing methods and our dedicated full-time, on-staff marketing executive to ensure you get maximum exposure.

Step 4: Screening Buyers

As inquiries come in, I personally interview each buyer to ensure compatibility with your practice. I’ll discuss the buyer’s profile with you if a potential match arises.

If you’re interested in moving forward, I’ll arrange an introduction. Once both parties have met and agree it’s a fit, we provide the buyer with a full, unredacted file containing all the necessary financial and practice information for their due diligence.

We feel strongly about our sellers and buyers working with advisors who focus on dentistry. Advisors such as lawyers and CPAs can be either adversarial or non-adversarial. Rest assured that the industry professionals we introduce you to will have their primary focus on dental transactions, they will have significant experience, and they will be non-adversarial. All these factors combine to make the process go much smoother.

Step 5: Due Diligence and Offers

At this stage, buyers will:

• Conduct a chart review.
• Collaborate with banks to secure financing.
• Review detailed financial and operational documents.

Once satisfied, the buyer submits a Letter of Intent (LOI) outlining the terms of the purchase. This non-binding agreement will include items such price, terms, work-back arrangements (if applicable), restrictive covenants and possibly others. The LOI serves as the foundation for moving forward.

Step 6: From LOI to Closing

Upon signing the LOI, Legacy provides both the buyer and seller with a comprehensive Guide and Checklist to simplify the process and bring peace of mind to both the buyer and seller that they won’t be forgetting anything. Our buyer’s guide is over 50 pages, and our seller’s guide is over 40 pages, ensuring a thorough process. From securing financing to drafting the Asset Purchase Agreement (APA) and finalizing lease agreements, we ensure every step is handled professionally.

Additional considerations include:

• Bank Approvals: We recommend that buyers explore offers from 2-3 dental-focused banks to secure the best terms. We are happy to introduce buyers to banks that focus solely on dental practices.
• Credentialing for PPO/Medicaid Providers: Legacy can help explore solutions to address potential delays in credentialing to keep the process on track.
• Historically, buyers needed to give their current employer a 30-60 day notice to terminate their contract. Today, however, we are beginning to see some buyers who work with DSO’s requiring a 60–120 day notice. This could potentially delay closing. In such cases, we can sign the APA (effectively putting both parties under contract) and delay the final closing until their notice is satisfied.

The time from LOI to closing is typically 60-90 days, though this can vary based on the complexity of the transaction and the factors mentioned above.

Step 7: Closing Day

On closing day, all contracts are signed, funds are transferred, and ownership is officially transitioned. For you, it’s the beginning of a new chapter. Enjoy your retirement—you’ve earned it!

Why Choose Legacy Practice Transitions?

At Legacy, we pride ourselves on providing a tailored, comprehensive service for every dentist we work with. Our team is dedicated to preserving your legacy while ensuring a seamless transition.

As a retired dentist and practice transition expert, I bring personal insights and professional experience to guide you through every step. Together with Legacy Practice Transitions, we’ll help you navigate this process smoothly and successfully.

Take the First Step Today

Remember, selling your dental practice is a process, not an event. Proper guidance from the right professionals is essential. Let’s start with a confidential conversation to discuss your goals and explore your options.

To discuss how we can help, request a complimentary consultation or send us a message.