Do's and Don'ts of selling your dental practice

Deciding to sell and then actually selling a practice is a big deal. There are lots of do's and don'ts. IN 2025 we've seen more don'ts than do's.

The #1 DO is start selling well before you have to. Dr Tony Dey recalls "I always remember multiple people who used to say "I'll just wait and sell to Lumino." Well, we are not aware of any individual practice purchases by Lumino for well over 3 years. Or my other favorite is "I'll wait till the next financial year - the books will look better then.", never mind that the books have been shrinking slowly but consistently over time."

A valuation is the key first step to selling. This valuation is confidential to the vendor and it allows you to understand where you are at, where your practice could be if you made certain improvements and where it would go if there were some unforeseen circumstances.

Here's some of the Do's and Don'ts to consider when thinking about selling your dental practice.

✅ Do’s

1. Contact a broker
   1. Ideally LANZ.Dental, as soon as you have an approach from a buyer.
2. Start planning early – preferably 2-5 years ahead.
   
   • Getting your practice ready takes time (improving financials, patient retention, staff stability, updating equipment).
   • The New Zealand Dental Association (NZDA) highlights exit-planning and preparing your practice for sale as key. 
3. Get a formal valuation – understand what your practice is worth.
   
   • This includes tangible assets (equipment, premises) and intangible ones (goodwill, patient base, referral network).
   • Specialist brokers like LANZ.Dental offer valuations and sale support. 
4. Ensure your financials and documentation are clean + up to date
   
   • Buyers (and lenders) will demand solid records: P&L statements, tax returns, equipment lists, lease contracts, employment contracts, etc. 
   • Make sure all regulatory / consent / lease issues are sorted. 
5. Maintain practice performance and patient base
   
   • Don’t let production or patient numbers slip in the lead-up to sale; that undermines value. 
   • Ensure staff turnover is low; prospective buyers like continuity and stability.
     
6. Prepare transition/hand-over plan
   
   • Selling is more than changing ownership. A smooth transition helps with patient retention and staff morale.
   • Determine whether you will stay on full-time, part-time or in advisory role for a hand-over period, if desirable. 
7. Select the right buyer and structure the deal with professional advice
   
   • Decide whether you sell 100% or partially retain interest; consider what you want post-sale. 
   • Use advisers who understand dental practice sales (broker, accountant, legal).
8. Communicate confidently and manage confidentiality
   
   • Decide when to tell staff and patients to minimise disruption. 

❌ Don’ts

1. Don’t delay until you’re ready to retire and then rush the sale.
   
   • Many owners wait too long and are forced into worse terms because the practice’s momentum has fallen. 
2. Don't assume a younger associate doesn't have the money or wouldn't want to buy.
3. Don’t assume equipment upgrades automatically boost value unless they improve profitability.
   
   • Big renovations/upgrades may not add value in the short term if they don’t lead to greater earnings. 
4. Don’t hide liabilities or give incomplete disclosure
   
   • Outstanding legal issues, unpaid staff, equipment problems, lease issues all reduce buyer confidence and value. 
5. Don’t over-price the practice
   
   • Overpricing causes the practice to linger on the market, reduces buyer enthusiasm, and may force price drops later. 
6. Don’t neglect staff and patient concerns
   
   • Mishandling the transition (e.g., telling staff/ patients too early, or not at all) can cause loss of key team members or patients.
7. Don’t forget regulatory/contractual details
   
   • Ensure that your advertising/practice representation complies with the Dental Council of New Zealand standards.
   • Ensure leases, equipment contracts, resource consents are transferable or clearly dealt with. 
8. Don’t ignore timing and market conditions
   
   • The sale may take longer than you expect.
   • Be realistic about when you want out and how the market for dental practices is performing.
     

LANZ.Dental can assist you with a valuation, marketing and selling your practice. Contact our team on 021 229 7070 or email info@lanz.dental for a confidential conversation and to get the ball rolling.