Selling a dental practice is a big decision that requires planning and strategy. Whether you’re an owner-operator looking to retire, an associate-led business looking to expand or a practice looking for a new buyer, understanding the market will help you get the best price and a smooth completion.
With practices for sale in high demand, it’s important to position your business to attract the right buyer. This guide will take you through the key considerations, from valuing your surgery practice to a freehold or leasehold sale.
1. Valuing Your Dental Practice
Getting the right asking price for your dental practice for sale involves considering:
- Turnover and revenue – A high UDA rate, stable plan income and consistent NHS contract earnings will impact on valuation.
- Practice type – Whether you’re a private practice, mixed practice or two surgery private practice, buyers will value differently.
- Surgeries and equipment – Fully equipped surgeries with modern technology and space for extra surgeries are more desirable.
- Main road location – An ideal location with high footfall and accessibility will command a higher price.
- Expansion potential – Practices with room for further surgeries, extended opening hours, and specialist treatment options offer greater scope for growth.
An accountant can help you analyse these factors and get you the best price for your sale.
2. Structuring the Sale: Freehold vs Leasehold
One of the key decisions in a dental practice sale is whether to go for a freehold or leasehold deal.
- Freehold sale – You sell the business and the property, often appealing to buyers looking for long term security.
- Leasehold purchase – More accessible to new entrants or expanding groups who want lower upfront capital expenditure.
Understanding these options is key to structuring a deal that works for both parties and a smooth completion.
3. Finding the Right Buyer for Your Dental Practice
Buyers of dental practices range from independent dentists to corporate groups and private investors. The right buyer depends on your goals—whether you want to stay on involved, ensure continuity for patient’s or get the best price.
Common types of buyers include:
- Associate-led buyers – Often looking for a turn-key surgery practice with established patients.
- Owner-operators – Independent dentists who want full control of the practice.
- Groups & corporates – Looking to expand through the purchase of established practices.
Targeted marketing and an industry-specific accountant will help you attract the right buyer and get the best deal.
4. Preparing for Sale: Financial & Operational Readiness
To get the sale underway, make sure your financial and operational documents are in order. Essential documents include:
- Profit and loss statements
- Tax returns
- NHS contract details
- Employee and associate contracts
- Lease agreements (if applicable)
A well-organized practice with clear financials will reassure buyers and get you the best outcome.
5. Transition Planning & Post-Sale Success
Once the sale is agreed, a transition plan will ensure smooth handover and patient retention. This may involve:
- Gradual handover with the new buyer
- Retaining key members of the team for continuity
- Communicating the change to patients
A seamless transition will help the buyer and maintain the high standard of service your patients expect.
6. Capitalising on Market Trends
The dental practice market is changing, with trends like:
- Increased demand for specialist services
- Growing private treatment options
- Expansion of associate-led and corporate practices
Buying or selling at the right time will help you get the most out of these opportunities.
Conclusion: Get the Best Out of Your Dental Practice Sale
Selling a dental practice is a rewarding process when done right. Whether you have a two surgery or busy multi-surgery private practice, strategic prep, the right buyer and expert guidance will get you a successful sale. Get a professional on board