Why Dental Transition Planning Should Start 3–5 Years Before Retirement

If you’re thinking about retiring from dentistry, it’s easy to assume you can start planning once you’re ready to sell. In practice, the best dental practice transitions often begin several years earlier.

Starting your transition planning 3–5 years before retirement gives you time to improve the practice, address potential problems, and make decisions without rushing.

You Have Time To Improve Practice Value

A buyer will look at your practice’s financial performance, patient base, location, equipment, staff, and other factors when evaluating the opportunity.



If your overhead is higher than it should be or collections have declined, you have time to correct those issues. You can also make thoughtful decisions about equipment, staffing, technology, and other investments instead of making expensive changes right before a sale.

US Dental Transitions considers factors such as production, collections, profitability, location, equipment, and transferability when evaluating a dental practice.

You Can Address Problems Before A Buyer Finds Them

The earlier you begin, the more time you have to identify issues that could complicate a transaction.

Your planning should include:

• Reviewing financial statements and tax returns
• Evaluating accounts receivable and collections
• Reviewing equipment condition and replacement needs
• Assessing your lease or dental real estate
• Documenting important practice procedures
• Evaluating staff structure and retention
• Identifying potential legal or financial issues

Taking care of these items early can make due diligence much smoother.

You Have More Transition Options

Starting early also gives you more choices. You may want to sell the practice outright, bring in an associate who could eventually become the buyer, merge with another practice, or structure a gradual transition.

Some of these options require time to develop. If you wait until your planned retirement date, you may have fewer opportunities to choose the transition structure that works best for you.

You Can Plan Around Your Retirement Goals

Your practice sale is only one part of retirement planning. You’ll also need to consider when you want to stop practicing, what you want to do with your dental real estate, and how the sale fits into your broader financial plan.

Starting 3–5 years ahead gives your CPA, financial advisor, attorney, and dental transition advisor time to coordinate their work.

Start Before You’re Ready To Sell

You don’t need to list your practice three years before retirement. You should, however, start preparing for the eventual transition.

A good first step is to have your practice evaluated and identify what you can improve before going to market.

Call 678-482-7305 to schedule a consultation with US Dental Transitions in Suwanee, GA 30024.