When is the Right Time to Sell Your Dental Practice?

Deciding when to sell a dental practice is one of the most significant choices a dentist will make. While market conditions and practice valuations play a role, the decision rarely comes down to numbers alone. More often, it's driven by personal circumstances, changing priorities, or the desire for something different in life.

At Meridian Sales & Appraisals, we frequently speak with dentists who are exploring the idea of selling. These conversations typically begin with an overview of the current market, valuation trends, and insights from other dentists' experiences. Yet, despite a strong market, the actual decision to sell often happens months - or even years - after that initial conversation.

What Drives the Decision to Sell?

For most dentists, the trigger to move forward with a sale falls into one of two categories: a life event or a personal goal.

Life events that prompt action might include:

• A health issue, such as chronic pain or fatigue
• The emotional impact of losing a colleague or friend
• Frustration with staffing challenges or the daily grind
• A growing commute that eats into personal time
• Simply feeling burnt out by the responsibilities of ownership

Goals that inspire change often include:

• A desire to pursue new interests or hobbies
• Plans to travel, often alongside a retired spouse
• Reaching a stage where children are settled, easing financial pressures
• Dreams of living in a new city or province
• The realization that life is short, and it’s time to enjoy it more fully

In every case, the underlying factor is time - the desire to reclaim it, redirect it, or simply have more of it.

The Trade-Off: Time vs. Financial Return

From a purely financial standpoint, many dentists would be better off holding onto their practices as long as possible. Dental practices generate excellent returns on invested capital, often outperforming other investments. That's exactly why corporate buyers and multi-practice owners are willing to pay premium prices - they recognize the enduring profitability of dental ownership.

Let's put it in perspective:

• Practices typically sell for 4 to 8 times their adjusted net earnings.
• By keeping the practice, an owner continues to earn both clinical income and ownership profit.
• If you sell for, say, six times earnings, you'd need about six years of continued ownership to match that value through income - and few alternative investments would match that return.

And yet, most dentists don't simply work their practice until the last possible day. Why? Because eventually, the pull of time - of wanting to use it differently - becomes stronger than the drive for additional profit.

When Will You Be Ready to "Buy Time"?

Ultimately, only you will know when it's time to plan a new future. Whether sparked by an unexpected life event or a long-held goal, that moment will come when you decide it's worth trading future earnings for the freedom to spend your time as you choose.

Plan Ahead with Confidence - Talk to Meridian Sales & Appraisals

When you're ready to explore what selling your practice could mean for your future, Meridian Sales & Appraisals is here to help. We provide independent appraisals and expert guidance to ensure you make the right decision, on your timeline, with a clear understanding of your options. Contact us today for a confidential consultation - and take the first step toward buying time for what matters most to you.

Alan Rustom