When it comes to how to sell your dental practice, there’s no shortage of checklists and advice—but far fewer resources on what not to do. Yet the biggest threats to a successful sale aren’t market forces. They’re avoidable missteps made by well-meaning dentists who underestimate just how complex the process can be.
Whether you’re months or years away from a sale, knowing what to avoid can mean the difference between a clean, profitable transition—or a deal that stalls, falls apart, or leaves money on the table.
Here are the three most common pitfalls—and how to avoid them.
1. Underestimating Your Practice’s Value
One of the most damaging (and common) mistakes is undervaluing your practice—often because you’re too close to it, or you simply don’t know what drives market demand.
Here’s what usually goes wrong:
- Relying on outdated valuation formulas
- Assuming buyers only care about collections
- Ignoring intangible assets like goodwill, staff loyalty, or prime location
- Not factoring in upside potential (e.g., underutilized services, expansion capacity)
Why it matters:
An undervalued listing doesn’t just mean less money—it can also signal red flags to buyers. If your price is far below market, they’ll wonder what’s wrong.
Avoid it by:
- Getting a third-party valuation from a dental-specific broker or CPA
- Understanding key valuation drivers: active patient count, revenue per patient, and profit margins
- Framing your practice not just as-is, but as a growth platform for the next owner
💡 Pro Tip: Even a 10% mispricing on a $1M practice equals a $100,000 mistake.
2. Poor Financial Records and Incomplete Add-Backs
Buyers don’t buy on gut—they buy on paper. And if your books are messy, outdated, or unclear, the deal will suffer.
The big issues:
- Blending personal expenses with business operations
- Inconsistent categorization of income and expenses
- Missing add-backs (owner salary, family on payroll, personal car lease, etc.)
- No clear Seller’s Discretionary Earnings (SDE) statement
Why it matters:
Sloppy financials make it hard for buyers (and banks) to trust your numbers. If they can’t see what the practice truly earns, they’ll either walk—or offer far less to hedge their risk.
Avoid it by:
- Cleaning up your books at least 12–24 months before listing
- Working with a dental CPA to identify and document all add-backs
- Preparing a formal Seller’s Discretionary Earnings (SDE) report to highlight true profitability
- Making sure you can defend every line item in your P&L
🧾 Buyers don’t expect perfection—but they do expect clarity.
3. Trying to Sell Without Professional Help
Some dentists try to go it alone, either to save on broker fees or because they already have an interested buyer. But without the right advisors, even the most promising deals can unravel quickly.
Risks of going solo:
- Underestimating legal complexity (e.g., employment agreements, real estate terms)
- Missing key tax consequences of deal structure
- Leaving value on the table during negotiations
- Mismanaging buyer timelines or due diligence
Why it matters:
This is likely the biggest transaction of your life. Saving 5–10% in broker fees may seem smart—until you lose 20% of the sale price in missteps, mispricing, or legal oversights.
Avoid it by:
- Hiring a dental-specific broker to market and negotiate the deal
- Working with a healthcare attorney who understands practice transitions
- Consulting a CPA to evaluate tax implications of asset vs. stock sale
- Building a transition team that works together—from valuation to closing
🤝 Think of it like dentistry: could your patient do a crown at home with YouTube and a mirror? Technically—maybe. But at what cost?
Final Thoughts: Protect Your Practice. Protect Your Payoff.
Selling a dental practice is both an art and a science. The emotional side is real—but so are the financial stakes. Mistakes in valuation, financial prep, or legal process can cost you six figures and months of stress.
If you’re thinking about a sale, the smartest move you can make is this: get help early. Clean up your books, understand your value, and surround yourself with professionals who’ve done this before.
Because your last big business decision… should also be one of your best.
📘 Want to Avoid Every Pitfall?
Check out Dentist to CEO, available soon on Amazon. It’s packed with transition checklists, real-world case studies, and strategies to help you sell your practice for what it’s truly worth—without regrets.
👉 Grab your copy on Amazon and sell with confidence.