Common Mistakes to Avoid When Selling Your Dental Practice

Selling your dental practice is a significant milestone that requires more than just listing it as a dental practice for sale. Whether you’re planning to retire, relocate, or transition into a different role, the sale process can be complex and full of potential missteps. At CTC Associates, we’ve worked with hundreds of dentists across the Mountain West and Pacific Northwest and have seen what works—and what doesn’t.

Understanding and avoiding common mistakes can protect your investment and help you achieve maximum value when the time comes to transition.

Poor Timing Can Undercut Your Practice Value

One of the most common errors is poor timing. Many dentists wait until they’re ready to retire before starting the process. However, the ideal time to begin preparing your practice for sale is three to five years in advance. Early planning allows you to optimize collections, reduce overhead, and boost patient flow—key factors that impact your dental practice valuation.

The American Dental Association reports that general dental practices with over $1 million in annual gross revenue are among the most attractive to buyers. Yet, many practices see a drop in revenue during the year leading up to a sale, reducing perceived value and limiting buyer interest.

Trying to Sell Without Expert Guidance

Selling a dental practice for sale by owner might seem like a good way to save on commission fees, but it often results in leaving money on the table. Without the help of a dental broker, sellers risk:

• Mispricing the practice
• Mismanaging buyer communications
• Missing critical legal and financial steps

Partnering with experienced brokers like CTC Associates ensures your practice is properly marketed, valued accurately, and matched with qualified buyers. Our Dental Practice Listings showcase a wide range of opportunities with complete financial profiles and location-specific insights.

Not Organizing Financial and Operational Records

Inconsistent or unclear financial documentation is a red flag to buyers. Before listing your practice, it’s essential to prepare:

• Three years of tax returns
• Profit and loss statements
• Production and collection reports
• Staff contracts and office lease agreements

A prospective buyer looking to buy a dental practice will want to conduct due diligence. Disorganized records can delay or even derail a transaction.

Overvaluing the Practice Based on Emotion

Many practice owners understandably view their business with personal pride. But buyers rely on hard data. Overpricing your dental office for sale based on emotional value rather than market realities can lead to months—or even years—of missed opportunities.

At CTC Associates, we conduct formal practice appraisals that consider EBITDA, market conditions, and buyer demand to deliver a realistic price range. This ensures your practice is competitively positioned while still maximizing your return.

Failing to Maintain Production During Transition

It’s easy to mentally “check out” once you’ve decided to sell, but maintaining strong production is essential. A noticeable drop in new patient flow or monthly collections may give buyers the impression of a declining practice—even if that’s not the case.

Continue to invest in dental practice management systems, patient retention, and marketing throughout the sale process. A strong performance during the transition period reassures buyers and preserves your practice’s value.

Ignoring the Associate and Staff Transition Plan

An often-overlooked component of selling a dental practice is how the transition will affect your staff and any current associates. Clear communication, retention bonuses, and detailed transition plans help ease concerns and maintain continuity for patients.

Additionally, buyers are more likely to move forward with confidence when the existing team is expected to remain on board after the sale.

Choose the Right Partner for Your Practice Sale

CTC Associates has helped dentists across Colorado, Utah, Washington, and beyond navigate the sale process with confidence. Whether you’re listing a dental practice for sale by owner or seeking a strategic transition with an associate, our expert team is here to help you avoid costly mistakes and reach your goals.

From accurate valuation to tailored marketing, we support every step of your practice sale.