Selling a dental practice is one of the most significant financial transactions in a dentist’s life. Whether you’re planning to sell in the next year or several years down the line, taking the right steps now can significantly increase your practice’s desirability, value and sale price
At Dental Elite, we’ve helped hundreds of practice owners navigate the sale process, and one thing remains constant—the most successful sales are the result of careful planning and strategic decision-making. In this guide, we’ll walk you through the essential steps to maximise your practice’s valuation and secure the best possible multiple when it’s time to sell.
Understanding What Drives Your Practice’s Value
The value of your dental practice is typically determined as a multiple of EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation). Buyers and lenders look at EBITDA as a measure of profitability, but there are several other factors that influence the multiple you receive, including:
- Financial Performance – Stable and growing revenue streams attract higher multiples.
- Workforce Stability – A well-structured team with minimal reliance on a single clinician is a lower-risk investment.
- NHS vs. Private Revenue – The mix of NHS and private income can impact desirability.
- Patient Base – A healthy, engaged, and growing patient list signals a strong business.
- Market Conditions – Interest rates, lender appetite, and buyer demand all play a role.
- Growth Potential – Important for buyers due to interest rates and inflationary pressures
- Location – In demand area’s achieve higher interest and multiples than rural area’s.
With these factors in mind, let’s explore the strategies that can help increase your multiple and enhance your practice’s value.
Preparing for Sale: What to Do Years in Advance
- Reduce ‘Key Person’ Risk
One of the biggest concerns for buyers is over-reliance on a single clinician. If your practice depends heavily on you or a high-grossing associate, this poses a risk. Buyers worry that revenue will drop if a key dentist leaves post-sale.
How to Fix It:
- If you’re the primary earner, start transitioning some patients to associates.
- Avoid having a single associate generate more than 30-40% of revenue.
- Gradually reduce your clinical hours while maintaining business performance.
- Maintain a Stable or Growing Revenue
A common mistake practice owners make is reducing their workload before selling. While this might be a lifestyle choice, a declining revenue trend can reduce your multiple. Buyers want to invest in a business that’s either stable or growing—not one that’s slowing down.
How to Fix It:
- Avoid sudden drops in revenue. Keep seeing patients at a consistent rate.
- Introduce gradual fee increases each year to keep up with inflation.
- Enhance treatment offerings by promoting services such as Invisalign, implants, and hygiene plans.
- Diversify Income Streams & Manage NHS Contracts
A well-balanced revenue stream increases the appeal of your practice. If you have an NHS contract, ensure it’s being managed correctly – repeated underperformance can lead to contract reductions, which can affect your valuation.
How to Fix It:
- If shifting to private, ensure gradual transitions rather than sudden drops.
- Maintain compliance with NHS contracts to avoid breach notices.
- Offer membership plans to create predictable private income streams.
- Strengthen Your Patient Base
A large, active patient base adds value to your practice. Buyers will look at the number of active patients (typically those seen in the last 12-24 months) and assess how engaged they are with the practice.
How to Fix It:
- Reactivate dormant patients with email or SMS recalls.
- Encourage hygiene appointments to maintain patient engagement.
- Highlight a strong new patient flow with marketing efforts.
Final Touches Before Listing Your Practice for Sale
Once you’re within 12-18 months of selling, it’s time to refine the details and make your practice as attractive as possible to buyers.
- Improve ‘Curb Appeal’.
First impressions matter! Buyers will often visit your practice in person before making an offer.
Quick Wins:
- Refresh signage and waiting areas to present a modern look.
- Ensure all equipment is well-maintained but avoid major purchases (let the buyer invest in new chairs if needed!).
- Remove outdated marketing materials and create a professional, welcoming environment.
- Demonstrate Growth Potential
Buyers are looking for practices with opportunities for expansion. Show them how they can grow the business.
How to Fix It:
- Highlight any unused surgery space that could be utilised.
- Show potential for additional private treatments or specialist services.
- If you haven’t increased prices recently, explain how a new owner could implement a price adjustment for instant revenue growth.
- Have Your Financials in Order
A clean and well-organised set of accounts builds buyer confidence and makes the sales process smoother.
How to Fix It:
- Ensure accounts are up to date and clearly presented.
- Minimise discretionary spending (such as personal expenses through the business) to show a true reflection of profitability.
- Work with an accountant who understands dental practice valuations.
Final Thoughts: Get Expert Guidance for a Smooth Sale
Maximising the value of your dental practice isn’t just about finding a buyer—it’s about making sure your practice is in the best possible position when the time comes. Planning ahead gives you more control over the process, helping you achieve the strongest outcome when you decide to sell.
Whether you’re considering selling soon or just want to understand your options, taking proactive steps now can make all the difference. If you’d like guidance on where to start, speaking with an expert can help you navigate the process with confidence.
Get in touch with Dental Elite for a confidential valuation:
01788 545900 | info@dentalelite.co.uk