The Dental Practice Sale

A Practice Orbit Podcast
  • 3.0 (2)
  • Management
  • Updated Weekly

Dentistry, as a business, is in a period of flux today. Retiring dentists want to maximize the sale value and aren't sure where to find a strong buyer. Mid-career dentists want to grow beyond the traditional single office practice. Associates seeking financial predictability aren't sure if private practice will provide it. And Institutional dentistry (DSOs, DPOs) are driving up valuations, but often with complex deal terms. Amid this landscape, the Dental Practice Sale podcast is intended to provide it's listeners with (1) education and seller stories and (2) insights into how the www.practiceorbit.com platform can help these various parties operate more effectively together in it's online marketplace.

  1. Aug 4

    44: Bidding Wars: Winning the 2026 Bid Spread

    Picture two identical dental practices on opposite ends of the same street — same collections, same operatories, same patient base. One owner takes the first DSO cold call and signs. The other runs a disciplined 90-day competitive process and walks away with hundreds of thousands more — frequently crossing a $1 million premium. Nothing about the dentistry changed. The only variable was the process. That's the counterintuitive truth at the heart of this episode, built on the 2026 research brief Winning the Bid Spread: valuation multiples have been flat (roughly 6–12x EBITDA) for two years, yet the gap between the lowest and highest offer on the same practice sits at a historic high. We unpack why buyers will jump ~50% from their opening number when forced to compete — the "DSO squeeze" (69% of DSOs expect more acquisitions this year; 78% face a recapitalization in the next 12–36 months) colliding with the demographic wave (average retirement age 68.7, with 40%+ of dentists 55 or older in some states). Then we contrast the two buyer types head-to-head: the DSO's big headline multiple with only 60–80% cash at close and illiquid rollover equity, versus the private buyer's smaller headline but 75–85% cash, a secured seller note, and a clean exit. Finally, the engineering that happens before you go to market: normalizing EBITDA with legitimate add-backs (a 10–20% lift), pulling the scale and hygiene levers, and eliminating the suppressors that quietly tank a valuation. In this episode: The "identical twins" thought experiment: a $1M+ difference created purely by processWhy the multiple is set by the market but the check is set by the competition you runThe bid spread: 5+ competing offers averaging ~50% above the initial offer (TUSK 2026)The DSO squeeze — 69% expanding acquisitions, 78% facing a recap deadlineThe silver tsunami: retirement at 68.7, 40%+ of dentists aged 55+DSO vs. private buyer: EBITDA multiple + rollover equity vs. TTM collections + clean cash and a seller noteWhy "cash at close" and rollover equity matter more than the headline numberNormalizing EBITDA: owner comp, personal expenses, and one-time add-backs (a 10–20% lift)Value levers (scale premiums, 25–35%+ hygiene mix) and suppressors (Medicaid concentration and the Oct 1, 2026 OBBB cuts, provider concentration, short leases)Why due diligence is a "price reduction phase" — and how to disarm it before the LOI One action this week: If you're 1–5 years from a transition, pull your trailing-12-month P&L and your production-by-provider report, sit down with a red pen, and calculate your true normalized EBITDA — including your legitimate add-backs and owner/operator replacement cost. That single exercise tells you which valuation tier you're actually in, long before you pick up the phone. Learn more: Practice Orbit — practiceorbit.com Source: Practice Orbit research brief, Winning the Bid Spread (2026).

    44: Bidding Wars: Winning the 2026 Bid Spread

  2. 11/24/2025

    43: Finding the Right Dental Practice with Chris Marshall

    In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Chris Marshall break down some of the most important warning signs dentists should watch out for when evaluating a dental practice for purchase. Drawing from real client cases and common deal-flow patterns, they discuss the financial, operational, and clinical red flags that often hide beneath the surface of seemingly attractive listings. Listeners will learn how to interpret declining numbers, inconsistent hygiene schedules, sudden production increases, PPO manipulations, risky seller behaviors, and gaps in patient flow. By the end of the episode, you’ll understand how to look past broker language and identify the true health or weakness of a prospective practice. Key Takeaways1. Declining Production or Collections Are a Major Red FlagIf collections or production drop year-over-year even slightly it signals deeper issues. This could mean a declining patient base, ineffective ownership, poor systems, lack of demand, or mismanagement. 2. Hygiene Department Instability Signals Deeper ProblemsLarge swings in hygiene revenueInconsistent recall schedulesDeclining hygiene visitsThese typically indicate poor systems, weak re-care, or a lack of organization affecting long-term revenue. 3. Sudden, Unexplained Production Increases Are Often ArtificialA seller spiking numbers in the year before the sale is a common tactic. Examples include: Over-treatmentRunning unnecessary proceduresPre-billing treatment A buyer should be cautious: inflated numbers ≠ sustainable revenue. 4. PPO / Insurance Manipulation Is a Growing ConcernPractices sometimes: Drop PPOs before sellingSwitch PPO participationAdjust fee schedules to appear more profitable Understanding the insurance environment is essential to projecting true cash flow. 5. Seller Behavior Tells You Almost EverythingPay attention if the seller: Wants to leave immediatelyAvoids answering questionsHas incomplete records Shows disorganized systems These behaviors often align with financial or operational decline.

  3. 05/06/2025

    EBITDA: Everything You Need to Know About It

    In this episode, Wes Read, CPA and founder of PracticeCFO dives into one of the most important financial terms in dentistry: EBITDA. Whether you're planning to sell your practice or simply want to manage it better, understanding EBITDA is essential. Wes explains what it is, how to interpret it from your P&L, and why every dental professional—owner or associate—should know the business side of dentistry. This episode is designed to help you start thinking like a CEO of your dental practice. Because yes, it’s a practice—but it’s also a business, with payroll, debt, taxes, benefits, and financial planning responsibilities. Key PointsEBITDA is a key financial metric every dental practice owner should understand.Even associates benefit from learning the business side of dentistry.Your dental practice operates like any other business—complete with payroll, taxes, and budgets.Understanding financials helps you become an effective CEO of your practice.Unlike large corporations, dentists provide services (not products), but the financial principles still apply. #DentalBusiness #DentalPracticeManagement #EBITDA #DentalFinance #DentistryPodcast #DentalCEO #DentalAssociates #PracticeOwnership #DentalEntrepreneur #FinancialLiteracy #P&LExplained #BusinessOfDentistry

  4. 04/17/2025

    41: Your Practice in Numbers: Mastering the Profit & Loss Statement

    In this episode with Wes Read, CPA and founder of PracticeCFO, we explore a topic that is absolutely foundational to the financial success of your dental practice—your financial statements. Host [Your Name] (or "I") breaks down the importance of understanding your Profit & Loss Statement (P&L) and how it reflects the economic health of your practice. Whether you’re preparing to sell your dental practice or simply want to make smarter financial decisions, this episode will help you interpret your numbers and transform your P&L into a powerful decision-making tool. Key Points:Financial statements are your practice’s financial X-rays. They tell the story of all your effort. P&L (Profit & Loss) shows income and expenses; it's key to understanding your monthly performance. Balance Sheet shows assets and liabilities—important, but covered in a future episode. Your P&L should be reviewed monthly—ideally by the 15th–20th of the following month. Understand Net Operating Income: what's left after operational costs but before debt, taxes, and personal draw. A well-structured P&L is essential whether you're managing or selling your practice. Tools like QuickBooks Online and REACH Reporting can improve report clarity and benchmarking. #DentalPodcast #DentalFinance #DentalPracticeManagement #ProfitAndLoss #PracticeCFO #DentalBusiness #DentalAccounting #DentalSale #PlandL #BalanceSheet #DentalOwners #FinancialFreedomDentist #DentistLife #SellYourPractice #DentalConsulting

  5. 04/10/2025

    40: Top 10 Mistakes When Selling Your Dental Practice

    Selling a dental practice is one of the biggest financial decisions in a dentist’s life—and it’s easy to make costly mistakes. In this episode, Brian Hanks sits down with Wes Read, CPA and founder of PracticeCFO, to break down the top 5 most common mistakes dentists make when selling their practice. From bad timing to poor team assembly, Wes and Brian share the insights every seller needs to avoid leaving money (and sanity) on the table. Key Points: Why selling too late can hurt your practice value The hidden danger of “just listing with your CPA” What happens when your staff finds out too soon Why selling to the first buyer is often a trap How working without a strong team can sabotage your deal #PracticeSale #SellYourPractice #DentalBroker #DentalCPA #DentalFinance #PracticeCFO

  6. 04/03/2025

    Credit Score: What Dentists Need to Know

    Your credit score may not seem like a daily concern, but as a dentist, managing debt is an unavoidable reality. Whether it's student loans, a practice acquisition, or buying a home, your credit score can be the deciding factor in securing favorable loan terms. In this episode, we break down the essentials of credit scores, how they impact your financial future, and key strategies to improve and maintain a strong score. Learn why debt, when used correctly, can be a powerful tool for financial growth and how to leverage it wisely. Key Points Covered: ✅ Why credit scores matter for dentists and practice owners ✅ The role of debt in wealth accumulation and financial leverage ✅ Common misconceptions about credit and debt management ✅ The five key factors that determine your credit score ✅ How to strategically use debt to build wealth and avoid financial pitfalls ✅ Why leveraging assets like a dental practice can create long-term financial success ✅ Practical steps to improve your credit score and increase lending opportunities Resources & Links: 💡 Learn more about financial planning for dentists at PracticeCFO.com 💡 Check your credit score and track your financial health with AnnualCreditReport.com #DentalFinance #CreditScore #DebtManagement #DentalPractice #FinancialFreedom #WealthBuilding #DentistLife #PracticeOwnership #SmartInvesting #FinancialPlanning

  7. 01/21/2025

    Profit Allocation Models for Dental Partnership

    Podcast Summary:In this episode, we delve into one of the most critical aspects of running a successful dental partnership: profit allocation. Drawing parallels between marriage dynamics and business partnerships, we explore three core models for distributing profits among dental practice owners. These models — the 50/50 Model, Associate-Owner Model, and Full Allocation Model — are unpacked to help you determine the best approach for your practice. Whether you're a seasoned dentist or exploring partnerships for the first time, this episode provides valuable insights into structuring financial success in your dental business. Key Points: Importance of Profit Allocation in Dental Partnerships: Financial arrangements impact business success and partner relationships. Three Models for Profit Allocation: 50/50 Model: Equal distribution of profits, simple but less flexible.Associate-Owner Model: Combines individual production rewards with shared profits.Full Allocation Model: "Eat What You Kill" approach; rewards are based solely on individual contributions. Factors Influencing the Right Model: Production levels, time commitment, and practice type.Balancing fairness with incentivizing productivity. Practice CFO's Expertise: Years of experience guiding dental partnerships.Customized solutions tailored to practice-specific dynamics. Special Considerations: Family practices often favor the 50/50 Model.Adjustments for specialists or varying partner roles. The Importance of Financial Reserves: Maintaining at least one month’s expenses in working capital. Exploring Practice Orbit: Innovative platform for buying and selling dental practices. #DentalPartnerships #ProfitAllocation #DentalCPA #PracticeManagement #BusinessStrategies #EatWhatYouKill #AssociateOwnerModel #DentalBusiness #PracticeOrbit #DentistryInsights

  8. 01/07/2025

    Dental Partnership Legal Structure

    Summary: In this episode, we explore the financial and legal intricacies of dental partnerships. Learn about the pros and cons of various legal structures, including S corporations and partnerships, and why selecting the right setup is crucial for tax efficiency and liability protection. Our host also shares tips on payroll, 401(k) planning, and navigating IRS requirements. Plus, discover how PracticeOrbit.com simplifies dental practice sales and connects you with expert advisors. Key Points: Importance of tailored tax planning for dental practices.Understanding 401(k) plans and payroll management.Legal structures for dental partnerships: S corporations vs. partnerships.Why dentists should avoid C corporations due to double taxation.Role of the K-1 in S corporation tax filings and FICA tax savings.Legal setup advice: consulting dental-specialized attorneys.Selling a dental practice through PracticeOrbit.com. #DentalPartnerships #TaxPlanning #DentalPractice #SCorporation #PracticeOrbit #DentalBusiness #401kPlanning #TaxEfficiency #SmallBusinessTips #FinancialFreedom

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About

Dentistry, as a business, is in a period of flux today. Retiring dentists want to maximize the sale value and aren't sure where to find a strong buyer. Mid-career dentists want to grow beyond the traditional single office practice. Associates seeking financial predictability aren't sure if private practice will provide it. And Institutional dentistry (DSOs, DPOs) are driving up valuations, but often with complex deal terms. Amid this landscape, the Dental Practice Sale podcast is intended to provide it's listeners with (1) education and seller stories and (2) insights into how the www.practiceorbit.com platform can help these various parties operate more effectively together in it's online marketplace.

Information

  • Creator
    A Practice Orbit Podcast
  • Years Active
    2023 - 2026
  • Episodes
    45
  • Rating
    Clean
  • Copyright
    © Copyright 2026 A Practice Orbit Podcast
  • Show Website
    The Dental Practice Sale

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