Preparing Your Dental Practice for Sale Checklist

Preparation determines 20-30% of your final sale price. Use this comprehensive checklist starting 12-18 months before listing to maximize value.

Financial Preparation (12-18 months out)

Clean Up Your Books

• Separate personal expenses from practice
• Document owner discretionary expenses
• Ensure tax returns match practice financials
• Reconcile all accounts
• Clear any IRS issues

Improve Profitability

li>Renegotiate supply contracts
• Review fee schedules
• Eliminate unnecessary expenses
• Optimize staffing levels

Financial Documentation

• 3 years tax returns
• Current P&L statements
• Balance sheets
• Accounts receivable aging
• Production/collection reports

Operational Preparation (9-12 months out)

Equipment and Technology

• Service all equipment
• Update software licenses
• Replace obsolete technology
• Document equipment inventory
• Ensure warranties transfer

Facilities

• Fresh paint and minor updates
• Deep clean throughout
• Fix deferred maintenance
• Organize storage areas
• Curb appeal improvements

Patient Records

li>Ensure HIPAA compliance
• Complete missing charts
• Update contact information
• Organize insurance verifications

Staff Preparation (6-9 months out)

• Document all job descriptions
• Update employee handbook
• Review compensation structures
• Ensure employment agreements
• Plan retention strategies

Documentation Preparation (3-6 months out)

Legal Documents

• Lease agreements
• Equipment financing documents
• Insurance policies
• Employee contracts
• PPO contracts

Practice Operations

• Procedure protocols
• Office policies
• Supplier contacts
• Software manuals
• Marketing materials

Quick Wins (1-3 months out)

• Boost collections (reduce AR)
• Fill schedule
• Reactivate dormant patients
• Address any patient complaints
• Ensure consistent hours

Bottom Line

Thorough preparation increases sale price and reduces time on market. Start early—rushed preparation always costs money.

Sale preparation help? Contact DentalBridge.