A sale you plan for years in advance looks very different from one you scramble to close. Here’s how to prepare the practice and yourself so you can sell on your terms.
When should you start planning a sale?
Two to five years of runway gives you room to improve value, plan taxes, and align the sale with your retirement-income needs. Earlier is better, but it’s rarely too late to benefit from planning.
How do you evaluate buyers and deal structures?
Price is only part of the story. How a deal is structured — asset vs. entity sale, earn-outs, real estate, and whether you stay on as an associate — affects your after-tax proceeds and your life afterward. A DSO offer is a distinct case worth its own analysis.
What about taxes on the sale?
The way proceeds are characterized and structured can materially change what you keep. This is coordinated with your CPA and attorney; the goal is to plan the tax impact before you agree to terms, not after.
From sale proceeds to retirement income
The point of a sale isn’t the check — it’s the life it funds. Turning a one-time event into durable, tax-aware income designed to last your lifetime is the real work, and it connects to diversifying beyond the practice.
Frequently asked questions
The active sale process can take months, but the valuable preparation often spans a few years. Starting early gives you the most options and the best outcome.
Each has trade-offs in price, structure, control, and life afterward. Evaluate the after-tax economics and your goals rather than the headline number alone.
Founder & Financial Planner · Investment Adviser Representative · Series 63 & 65
Ian McGinnis is a financial planner and founder of Dental Wealth Partners, a non-commission, fee-only financial planning firm for dentists. He is the author of The Wealthy Dentist: Smarter Money. Less Stress. More Life. and hosts the Smiles & Cents podcast.
Keep reading
- How to value a dental practiceThe main methods used to value a dental practice, what drives value, and how buyers and sellers should think about the number.
- How to evaluate a DSO or private-equity offerA framework for dentists weighing a DSO or private-equity offer — understanding deal structure, after-tax proceeds, and life after a sale.
- Why your dental practice shouldn’t be your whole retirement planConcentration risk is the quiet danger for successful dentists. Here’s how to think about building wealth beyond the practice.