Selling a practice
Breaking Down Dental Practice Sale Agreements: Tips for a Smooth Transition
A dental practice sale agreement is more than closing paperwork. It is the roadmap for what transfers, how the price is paid, which promises each party is making, and what happens if an issue surfaces after closing.
Written byDr. Jared A. Franson
Start with a precise list of what is included
The agreement should clearly identify the equipment, furnishings, patient records, supplies, intellectual property, accounts, and other assets included in the transaction. Anything excluded should be named just as carefully. Clarity here prevents expensive surprises later.
Understand the economic terms
Look beyond the headline purchase price. Review the allocation of value, deposits, financing contingencies, prorations, adjustments, and timing of payments. Each item can affect taxes, cash flow, and the actual value received by both buyer and seller.
Track the conditions that must be satisfied
Financing, lease assignment, licensing, credentialing, due diligence, and delivery of required documents can all affect whether and when the transaction closes. Every condition should have a responsible party, a deadline, and a clear consequence if it is not completed.
Plan for life after closing
Non-compete terms, transition support, staff and patient communication, representations and warranties, indemnification, confidentiality, and dispute resolution all shape the handoff. The right legal, accounting, and transition advisors can help you understand how these provisions work together before you sign.
This article is for general educational purposes and is not legal, tax, accounting, or financial advice. Consult appropriately qualified professionals regarding your specific situation.