How to Sell a Dental Practice in California | Martin Navarro, Business Broker
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Medical and Professional · Seller's Guide

How to Sell a Dental Practice

Dental practices sell on patient charts, collections, and goodwill, with DSOs now major buyers. Here is how a practice sale works.

What makes selling a dental practice different

A dental practice's value is built on its active patient base and collections, active charts, recall (hygiene) patients, new-patient flow, and insurance or PPO participation. The durability of that patient base and the payor mix drive the price.

Goodwill transition and the buyer type are central. Because patients often follow the dentist, a smooth transition, sometimes with the seller staying on for a period, protects value. Buyers range from individual dentists to DSOs (dental service organizations), which value practices differently, often more aggressively for the right practice.

What is a dental practice worth?

Most buyers value a dental practice on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.

Dental practices are commonly valued as a percentage of annual collections (often roughly 60 to 85 percent) or a multiple of adjusted earnings for larger practices, driven by collections, patient base, payor mix, and location. DSO buyers may pay more for the right practice. This is a specialized area, and I work alongside your CPA and dental-specific advisors so the valuation and transition are done right.

A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →

Selling without your staff or competitors finding out

Selling a dental practice works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.

What's your dental practice actually worth?

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Selling a dental practice, answered

It depends on your goals. DSOs often pay strong prices and may want you to stay on, while an individual buyer may better fit a smaller practice and a full exit. I help you weigh both and market confidentially to the buyer type that fits your goals and value.

A structured transition, often with the selling dentist staying on for a period, is the key to retaining patients and protecting value, since patients follow the relationship. We build that transition into the deal.

Yes. We market with a blind profile and NDAs, and patient information is handled in a HIPAA-compliant way throughout, so staff, patients, and referral sources are protected until the right stage.

Martin Navarro, Business Broker

Martin Navarro, Business Broker

Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.

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