The Difference Between Selling an Orthodontic Practice and a General Dental Practice

When it comes to selling a dental practice, there are some differences between selling an orthodontic practice and a general dental practice. Both types of practices have unique characteristics that can impact everything from valuation to buyer interest. In this article, we'll explore these differences, providing insights for anyone considering putting their practice on the market. Whether you're listing an orthodontic practice for sale in Washington or a dental practice for sale by owner, understanding these nuances is crucial.

Market Demand and Buyer Pool

One of the primary differences between selling an orthodontic practice and a general dental practice is the market demand and buyer pool.

• Orthodontic Practices: The buyer pool for an orthodontic practice is often more specialized. Potential buyers typically include other orthodontists or dental specialists looking to expand their services. The demand for orthodontic practices can be high in specific regions, particularly in areas where there is a growing population of young families. For example, if you have an orthodontic practice for sale in Washington, you might attract buyers looking to tap into the state's growing demographic.
• General Dental Practices: In contrast, general dental practices tend to have a broader buyer pool. General dentists, recent dental school graduates, and even corporate dental chains may be interested in purchasing a general dental practice. The demand for general dental practices is usually steady, making it easier to find a buyer, especially in populated areas.

Valuation Considerations

The methods used to value an orthodontic practice differ slightly from those used to value a general dental practice, primarily due to the nature of services offered and the patient base.

• Orthodontic Practices: Orthodontic practices typically have higher valuations due to the specialty services they provide. These practices often have higher profit margins, a steady stream of patients on long-term treatment plans, and specialized equipment that adds to the practice's value. Additionally, the recurring revenue from ongoing orthodontic treatments can make an orthodontic practice for sale highly attractive to potential buyers.
• General Dental Practices: The valuation of a general dental practice is usually based on a combination of factors, including patient base, annual revenue, equipment, and the practice's reputation in the community. While general dental practices may have lower profit margins compared to orthodontic practices, they often benefit from a larger, more diverse patient base that includes individuals of all ages.

Transition and Patient Retention

The transition process and patient retention strategies can also differ significantly between selling an orthodontic practice and a general dental practice.

• Orthodontic Practices: Transitioning an orthodontic practice requires careful planning, particularly because patients are often in the middle of long-term treatment plans. It's essential to ensure continuity of care to maintain patient trust and retention. The new owner will need to build relationships with these patients quickly to prevent any disruption in their treatment plans.
• General Dental Practices: While patient retention is also important in a general dental practice, the transition may be smoother due to the nature of general dentistry. Patients may not be as tied to a specific dentist as they would be to an orthodontist overseeing their braces or aligner treatment. However, maintaining patient loyalty during the transition is still crucial, and introducing the new dentist to the community can help in retaining patients.

Regulatory and Licensing Considerations

Both orthodontic and general dental practices must navigate regulatory and licensing requirements when being sold, but there can be differences depending on the specialty.

• Orthodontic Practices: Orthodontists are specialists, and the sale of an orthodontic practice may involve additional scrutiny regarding the transfer of patient care and continuity of specialized services. Ensuring that the buyer has the appropriate credentials and experience is essential for a successful sale.
• General Dental Practices: While general dental practices must also comply with state regulations, the process is often more straightforward. The sale of a dental practice for sale by owner might involve standard licensing transfers and compliance checks. Still, the absence of specialized services can make the process less complex compared to an orthodontic practice.

Selling Your Dental Practice

Selling an orthodontic practice differs in many regards from selling a general dental practice, from the valuation process to the transition of patient care. If you're considering listing an orthodontic practice for sale or a dental practice for sale by owner, understanding these differences can help you navigate the process more effectively. For those with an orthodontic practice for sale in Washington or any other location, it’s important to highlight the specialized nature of your services to attract the right buyers. On the other hand, if you're selling a general dental practice, broadening your marketing efforts to reach a diverse buyer pool can lead to a successful transaction.

Understanding these key distinctions will ensure that you position your practice in the best possible light, whether it's a highly specialized orthodontic practice or a versatile general dental practice.

Consider professional guidance when selling your dental practice. CTC Associates has been around since 1988, carefully crafting and developing transition procedures that help you navigate the complexities of buying or selling a dental practice.