Selling your dental practice isn’t just about finding a buyer—it’s about preparing your business to make the transition as smooth and successful as possible. Whether you're years away from a sale or already in talks with a broker, following a solid due diligence process can protect your interests and increase your final sale value.
This checklist outlines the essential steps in selling a dental practice and how to prepare for a transition with confidence and clarity.
1. Organize Financial Documentation
Clear, accurate financials are foundational to any successful transition. Prepare the last 3–5 years of:
- Profit and loss statements
- Balance sheets
- Tax returns
- Production and collections reports by provider
- Payroll records and accounts receivable summaries
Tip: Make sure these reports are reconciled and reviewed by a CPA or a Transition Sales Consultant.
2. Review Legal & Entity Documents
Buyers and their legal teams will request:
- Entity formation documents (LLC, S-Corp, etc.)
- Lease agreements or property ownership records
- Licenses, permits, and insurance documentation
- Associate contracts and employee agreements
- Vendor contracts (labs, suppliers, software)
3. Conduct a Clinical and Operational Audit
Take stock of your systems, workflows, and technology:
- What dental software and systems do you use?
- Is your documentation consistent and defensible?
- Are you compliant with HIPAA, OSHA, and other regulations?
- Is your equipment maintained and up to date?
Transition-ready practices are organized, consistent, and easy for a new owner to step into.
4. Assemble Key Practice Metrics
Prospective buyers will want to understand how your practice performs:
- Active patient count (define how it’s measured)
- New patient numbers over the last 12 months
- Hygiene recall rate
- Treatment acceptance rate
- Referral sources and payer mix
Tools like Jarvis Analytics can streamline this reporting and give you visibility into practice value drivers.
If you’re working through the selling dental practice steps with an advisor, having this data organized early can save time and reduce back-and-forth during the buyer review process.
5. Prepare Your Team for the Transition
Transparent communication and role clarity can make or break a successful handoff. While you may not be able to share every detail up front, preparing:
- Updated staff roles and compensation packages
- A written transition plan or playbook
- Patient communication strategies (letters, FAQ, etc.)
Helps ensure confidence for staff and continuity for patients.
6. Get a Professional Valuation & Advisory Support
Before listing your practice, it’s critical to understand what it’s worth in today’s market and how you can improve that value in the near term.
Henry Schein Dental Practice Transitions offers comprehensive support throughout the entire process, from valuation to marketing, buyer screening, and close.
Ready to take the first step?
Request Your Complimentary Consultation
