Sell Your Practice and Stay On as Associate

Selling while staying as an associate offers the best of both worlds: liquidity from your practice value plus continued income doing what you love. This arrangement works well for gradual retirement transitions.

Why Sell and Stay?

• Liquidity event for financial security
• Reduced administrative burden
• Continue clinical work you enjoy
• Flexible schedule (semi-retirement)
• Patient continuity and staff retention

Compensation Structures

Percentage of Collections

• 30-35% typical for associates
• May include lab deductions
• Production bonuses possible

Base Plus Percentage

• Guaranteed minimum
• Percentage above threshold
• More security for seller

Employment Term

• 1-5 years typical
• Tapering schedules (5 days → 3 days → 1 day)
• Flexible arrangements possible

Negotiation Points

• Schedule flexibility
• Continuing education allowance
• Malpractice insurance
• Non-compete scope
• Patient assignment

Tax Considerations

Sale proceeds + associate income in same year:

• May push into highest tax bracket
• Consider installment sale
• Plan for quarterly estimated taxes

Conclusion

Sell-and-stay arrangements provide smooth transitions for sellers and continuity for patients. Negotiate flexible terms that accommodate your lifestyle goals.

Planning your transition? Contact DentalBridge.