Year-End Checkup: Is Your Exit Strategy Still on Track?

Whether you’re a few years from retirement or already have a tentative timeline in place, a year-end dental practice exit strategy checkup helps ensure that you’re still aligned with your goals, market conditions, and practice performance.

This article offers a focused review of what to evaluate before the year closes, and what adjustments may be needed to keep your dental practice exit strategy checkup on track.

 

1. Revisit Your Timeline and Transition Goals

Have your goals changed over the last 12 months? Common reasons dentists adjust their timeline include:

• Health or lifestyle changes
• Shifts in production or profitability
• Buyer interest or market demand in your area
• Team turnover or retention challenges

Clarifying your ideal exit window—whether it’s 6 months or 6 years away—ensures you’re planning proactively, not reactively.

2. Assess Your Financial Readiness

Run a quick financial health check:

• Are your books clean and up to date?
• Is your collections-to-production ratio healthy?
• Do you have 3+ years of P&Ls, tax returns, and balance sheets ready for review?
• Are there personal expenses running through the business that may skew valuation?

If the answer to any of the above is “no” or “not sure,” now’s the time to work with your CPA or a transition consultant to prepare.

3. Evaluate Practice Performance Metrics

Buyers will look closely at the last 12 to 36 months of performance.

Review:

• Production per provider
• Hygiene reappointment rates
• Patient retention and new patient flow
• AR aging and collection cycles

Look for trends—both positive and negative—and identify areas you can optimize before entering the market.

4. Revalue the Practice Based on Current Market Conditions During Your Dental Practice Exit Strategy Checkup

Market conditions shift. Practice valuations that were strong in early 2023 may look different now.

A new valuation can:

• Give you clarity on what your practice is worth today
• Help you identify which factors (e.g., tech upgrades, staffing, payer mix) are impacting value
• Guide you in adjusting your transition timeline or approach

5. Update Legal and Operational Documents

Ensure all critical documentation is current and accessible:

• Entity formation and tax ID records
• Staff contracts and associate agreements
• Lease terms or property ownership documents
• Equipment lists, warranties, and maintenance logs

These documents will be required during buyer due diligence—having them ready now makes for a smoother process later.

6. Align With Your Transition Advisor

If you’re already working with a transition expert (like Henry Schein Dental Practice Transitions), schedule a check-in. If not, now is a great time to start.

Advisors can help:

• Benchmark your practice against others in your market
• Recommend value-boosting improvements
• Begin buyer outreach when you’re ready

A Year-End Dental Practice Exit Strategy Checkup Sets You Up for Success

An exit strategy isn’t a one-and-done plan—it should evolve with your goals and your practice. By running a year-end checkup, you can move into the next year with clarity, confidence, and control over your timeline.

Want help assessing where you stand? Schedule a consultation.