Practice Exit Readiness Checklist for Dentists
10 Questions to Help You Think About Your Practice as a Long-Term Asset
For many dentists, a practice becomes their largest financial asset. However, most transitions are planned only a few years before retirement. The earlier you start thinking about your exit strategy, the more flexibility you may have when the time comes.
Use this quick checklist to evaluate whether your practice and financial plan are aligned with your long-term goals.
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Do you know the approximate value of your practice today?
Understanding the current value of your practice can help you see how it fits into your overall financial picture.
☐ Yes
☐ No
☐ Not sure
Have you thought about when you might want to transition out of the practice?
Even a rough timeline can influence how you make business and financial decisions today.
☐ Within 5 years
☐ 5 to 10 years
☐ More than 10 years
☐ Not sure yet
Do you know what type of transition you would prefer?
Dentists may exit in different ways.
☐ Sell to another dentist
☐ Sell to a group or DSO
☐ Bring on a partner
☐ Transition internally to an associate
☐ Not sure
Do you know how much of your retirement plan depends on the value of your practice?
☐ Less than 25 percent
☐ 25 to 50 percent
☐ More than 50 percent
☐ Not sure
Have you considered what could increase the value of your practice over time?
Examples include patient retention, revenue growth, operational efficiency, and team stability.
☐ Yes
☐ No
☐ Not sure
Is your practice financially organized in a way that would make a transition easier?
Buyers often evaluate financial documentation, profitability, and operational systems.
☐ Yes
☐ Somewhat
☐ No
Have you considered the tax implications of selling or transitioning your practice?
Taxes can significantly affect how much you ultimately keep from a sale.
☐ Yes
☐ No
☐ Not sure
Do you know what your income needs will be after you transition?
Understanding lifestyle and retirement income needs can help determine when and how you transition.
☐ Yes
☐ Rough idea
☐ Not yet
Have you considered whether bringing on an associate or partner could support a future transition?
In some cases, gradual transition structures may create more flexibility.
☐ Yes
☐ No
☐ Not sure
Have you discussed practice transition planning with a financial advisor or planning professional?
☐ Yes
☐ Not yet
What Your Answers May Indicate
If you answered “No” or “Not sure” to several questions, it may simply mean you have not had the opportunity to think about these topics yet. Many dentists do not start considering practice transition planning until much later in their careers.
Planning earlier can provide more options, whether you plan to sell, transition ownership, or continue practicing with greater flexibility.
Want help thinking through your exit and retirement plan?
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