Preparing for Sale: A 12-Month Checklist
Thinking about selling your dental practice? Here’s a practical timeline to help you prepare with confidence and maximise your result.
Introduction
Selling a dental practice isn’t something that happens overnight. While the transaction itself may only take a few months, the preparation is what often makes the difference between a smooth, high-value exit and one filled with compromise and last-minute surprises.
When selling a dental practice, meticulous preparation of financial records is not just a formality—it's a strategic necessity for maximising value and ensuring a smooth transaction. This preparation is crucial to properly understanding the practice's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), which serves as the foundation for fair valuation and effective negotiations with both buyers and sellers.
Why is this so important?
Accurate Valuation: EBITDA provides a clear, standardised measure of the practice's profitability by stripping out non-operating expenses and accounting irregularities. This allows potential buyers to assess the underlying earning power of the business objectively.
Effective Negotiation: A well-defined and substantiated EBITDA figure enables us to negotiate confidently and effectively on your behalf. Having a reliable, and accurate EBITDA lets us advocate for a sales price and terms that accurately reflect the practice's true value and potential.
Due Diligence: Buyers will conduct thorough due diligence on the practice's finances. Inconsistencies, omissions, or poorly presented records can raise red flags, erode trust, and potentially derail the deal.
Smooth Transaction: Well-organised records streamline the sale process, expediting due diligence and reducing the likelihood of delays or complications.
How can we help?
I understand the unique challenges of preparing dental practice financials for sale. With our extensive experience in the dental sector, we can provide invaluable internal accounting support to ensure your accounts are properly normalised and optimised to showcase the practice's true value. This includes assisting in the creation of a comprehensive Information Memorandum (IM) that highlights the practice's strengths and attracts qualified buyers. By partnering with us, you can be confident that your practice's financials are in expert hands, setting the stage for a successful and rewarding sale.
12 Months Out: Define Your Goals and Get Organised
Clarify your objectives. Do you want a full exit, or would you prefer to stay on part-time? Are you open to different types of buyers — such as private equity, corporate groups, or individual practitioners?
Review your business structure. Identify any ownership, trust, or entity issues that may affect the sale.
Engage your accountant and advisor. Begin discussions with professionals who can help you prepare financially, legally, and operationally.
Start a data file. Begin collecting key documents: financials, lease agreements, employment contracts, supplier agreements, etc.
🟡 Tip: Early clarity helps guide all other decisions and reduces delays down the line.
9 Months Out: Tidy Up Your Operations
Ensure your financials are accurate and up to date. . Financial Due Diligence
Financiial Statements: (we encourage your accountant to support you in this process)
Compile the last 3-5 years of profit and loss statements (P&L).
Gather balance sheets for the same period.
Prepare cash flow statements.
Tax Returns:
Assemble federal and state tax returns for the past 2-3 years.
Profit and Loss for the 2-3 years
Review staff contracts. Ensure everyone has a current contract and clearly defined roles.
Optimise billing and recall systems. Buyers look closely at hygiene performance and active patient numbers.
Assess clinical production. If the business is overly reliant on you as the principal, begin strengthening associate contributions.
🟡 Tip: This is also a good time to review your fee structure and make sure your pricing is competitive and defensible.
6 Months Out: Begin Market Preparation
Request a valuation. Understand what your practice may be worth and what’s driving that value.
Identify improvements. Tidy up the practice physically — equipment, décor, signage — and fix any operational issues that could raise red flags.
Review your lease. Buyers will want security of tenure. Make sure your lease has adequate time remaining or negotiate extensions.
Prepare your exit narrative. Be ready to articulate why you’re selling and what kind of transition you’re willing to support.
🟡 Tip: Even if you’re not 100% committed to selling yet, this prep will only increase your options — and reduce pressure when the time comes.
3 Months Out: Engage with Handon Advisory (Confidentially)
We will start identifying potential buyers. Creating a shortlist of qualified, serious candidates.
Create a profile for your practice. A well-written, factual overview helps buyers understand what makes your business attractive.
Determine deal structure preferences. Are you seeking an upfront payment, an earn-out, or phased handover?
Develop your communications plan. Decide when and how you’ll inform your team, patients, and key suppliers once the sale progresses.
🟡 Tip: Keep communications tightly controlled at this stage — confidentiality is critical.
1 Month Out: Final Preparation
Prepare for due diligence. Ensure your data room is complete and well organised.
Meet with your legal and financial advisors. Get clear on what to expect in the negotiation and contract phase.
Get emotionally prepared. Selling a practice is a major transition — make time to reflect on what’s next for you and your team.
🟡 Tip: If you’ve planned well, this phase should feel like confirmation — not crisis.
Preparation Protects Value
Selling your practice is more than a transaction — it’s a major personal and professional decision. By giving yourself a 12-month runway, you not only strengthen your negotiating position, you reduce stress and create more options when it matters most.
I work closely with practice owners throughout this journey — helping ensure they’re not just ready to sell, but ready to exit well.
Ready to start preparing?
Download our Seller’s Guide or speak with our team about building your exit plan with clarity and confidence.
