Selling your dental practice is a significant decision that can shape your career and personal life for years to come. With Dental Service Organizations (DSOs) increasingly dominating the marketplace and now accounting for about 70% to 80% of dental practice sales, many dentists find themselves considering whether selling to a DSO is the right path. However, before responding to that first offer or phone call, it’s essential to take a thoughtful and intentional approach to ensure you make the best decision for your future.
Recognize Your True Motivation
The most common reason dentists entertain DSO offers is money. Being told you have built a valuable business and offered millions of dollars can be flattering and tempting. That feeling of being recognized for your hard work is powerful. But if you were never thinking about selling before the offer, pause to assess if your motivation is solely financial or influenced by emotions such as stress or burnout.
Avoid rushing into a sale simply because an enticing number was presented. Instead, take the time to discuss the opportunity with trusted advisors and carefully evaluate what the deal means after factoring in taxes, debts, and taxes. After all, the amount you actually take home might be significantly less than the headline number.
Embrace Your Role as Both Clinician and CEO
One critical mindset shift is seeing yourself not just as a clinician but as the CEO of a business. Many dentists treat their practice as a high-paying job, overlooking the value of the business they have built. Viewing your practice as an asset rather than just a source of income lets you explore ways to grow and enhance its value over time.
By developing systems, delegating responsibilities, and expanding your team, you can increase your practice’s worth substantially, sometimes by optimizing your existing operations rather than selling immediately. Remember that as a business owner, you wear many hats, and it’s okay to ask for help from coaches or advisors to strengthen your leadership abilities.
Understand Where You Are in the Business Cycle
Dentistry practices go through phases: growth, stabilization, differentiation, expansion, and finally transition. Many dentists jump to selling without fully recognizing which phase they are in. For example, in early growth, you might still be building your patient base and clinical speed; selling at this stage often means missing out on the full potential value. As you move into stabilizing systems and optimizing operations, your practice gains both in stability and attractive value.
Recognizing these phases can give you the chance to make strategic improvements or expansions that can increase your practice’s worth and fulfillment before considering a sale. Taking time to evaluate your current phase helps avoid rushed decisions that you might regret later.
Assess Your Emotional State Before Making Big Decisions
Decisions made during moments of stress, frustration, or boredom often lead to regret. Dentistry, like any career, comes with ups and downs. Feeling overwhelmed after a difficult day or week can create a desire to make a big change, such as selling your practice, simply to escape the current challenges. Instead of acting on these impulses, give yourself space to reflect. Talk through your feelings with mentors or advisors, and consider whether making operational or practice model changes might restore your passion for dentistry without requiring a sale.
Beware of Fear and the Bandwagon Effect
Many dentists experience fear of missing out when they hear success stories of peers selling to DSOs. However, these stories often focus on the wins, while the disappointments remain unheard. The pressure created by the sense of urgency—that if you don’t sell now, you’ll miss a once-in-a-lifetime opportunity—can push dentists into premature decisions. Remember that dentistry and private practice will continue to evolve, and there will always be opportunities for growth and transition. Approaching the decision thoughtfully, based on your own goals rather than external hype, can help you avoid falling into this trap.
Make Sure You Are Financially and Emotionally Ready
To sell successfully, you must be both financially and emotionally prepared. This means having your personal finances in order so that the proceeds from the sale fulfill your long-term retirement and lifestyle goals. It also means understanding that selling involves giving up control of your business, which can be difficult if you value being your own boss.
Many dentists find the loss of autonomy more challenging than they anticipated. Calculating the after-tax value of the deal, accounting for expenses and possible delays in payouts, is crucial. If the numbers don’t support your lifestyle or retirement plans, or if you’re not ready to relinquish your leadership role, it may be worth reconsidering or delaying a sale.
Explore Alternatives and Stay True to Your Why
Selling to a DSO is just one option among many. Private practice ownership remains a viable and fulfilling path, especially as practices that focus on optimizing their operations continue to grow at strong rates. Consider whether restructuring your practice, bringing on an associate, expanding services, or adjusting your role might better serve your personal and professional goals. Revisiting the passion and purpose that initially drew you to dentistry can be powerful. By focusing on what you truly want to achieve, you can make decisions that align with your authentic self rather than reacting to external pressures or trends.
Intentionality is the Key to Making the Right Choice
The overarching message is to be intentional in your decision-making process. Avoid making urgent decisions driven by fear, boredom, or external pressure. Whether you ultimately decide to sell to a DSO, bring in partners, or continue growing your private practice, being thoughtful and proactive will serve you best. Take the time to understand your business’s current state, evaluate your emotional readiness, and work with trusted advisors to explore all your options. Living and practicing on your own terms, true to your goals and values, will lead to the greatest fulfillment and success.
Selling your practice is a major life event that deserves careful consideration. By taking a step back, assessing your motivations, business phase, and personal readiness, you position yourself to make a decision that truly supports your future. Talk to a trusted Dental CPA or financial advisor to understand if this is the right decision for you and your business. Dentistry will always have opportunities for those willing to embrace intentionality and authenticity in their practice and career choices.