Dental Exit Planning

Selling a Dental Practice

Two tools for dentists planning an exit: a net-proceeds calculator (what you actually keep after fees, debt, and taxes) and a DSO offer evaluator (how much of the headline number is guaranteed vs at-risk).

Net Proceeds Calculator

When you sell a dental practice, the sale price is not what you keep. Model broker commission, debt payoff, and the tax difference between an asset sale and a stock sale.

Remainder (20%) allocated to equipment/tangible (recapture).

Net to Seller

Estimated net proceeds

$658,400

Sale price$1,500,000
Broker commission (8%)−$120,000
Debt payoff−$250,000
Estimated taxes−$471,600
Goodwill (80%) @ cap-gains$1,200,000
Equipment (20%) @ ordinary$300,000

DSO Offer Evaluator

Selling a dental practice to a DSO? The headline multiple usually overstates what's guaranteed. Split the offer into guaranteed cash vs at-risk equity and earnout.

Implied earnout/holdback: 10%

Guaranteed vs At-Risk

Guaranteed (day-1 cash)

$1,680,000

At-risk (equity + earnout)

$720,000

Headline value$2,400,000 (6.0x)
Equity rollover$480,000
Earnout (max)$240,000
Expected earnout (70%)$168,000
Risk-adjusted total$2,328,000
Effective multiple5.8x

Talk to a dental exit-planning specialist

  • Get a second opinion on a DSO offer or sale structure
  • Plan the exit so you keep more after tax and earnout risk
Book a free exit-planning consultValue your practice first

Frequently Asked Questions

How much will I net from selling a dental practice?

Your net proceeds from selling a dental practice equal the sale price minus broker commission, any debt you pay off at closing, and taxes. Taxes depend heavily on whether the deal is an asset sale or a stock sale and how the purchase price is allocated between goodwill (taxed at lower capital-gains rates) and equipment (subject to depreciation recapture at ordinary rates).

Asset sale vs stock sale — which is better when selling a dental practice?

Buyers usually prefer asset sales (stepped-up basis, limited liability), while sellers often prefer stock sales because more of the gain is taxed at capital-gains rates. The allocation of an asset sale between goodwill and tangible equipment materially changes your tax bill. This calculator lets you compare both.

How do I evaluate a DSO offer?

A DSO offer headline number is rarely all guaranteed. Break it into day-1 cash (guaranteed), equity rollover (at-risk, depends on the DSO's future value), earnout (at-risk, depends on hitting targets), and holdback. The risk-adjusted 'effective multiple' is usually well below the headline multiple.

Is this a substitute for professional advice?

No. This is an estimate to frame your decision. Selling a dental practice involves tax, legal, and valuation questions specific to your situation. Consult a dental CPA, transaction attorney, and qualified advisor before signing anything.

Related decision tools

Practice Valuation Calculator

What is your dental practice worth before you sell?

Dental Practice Valuation

EBITDA-multiple valuation for dental practices.

Dental EBITDA Calculator

Normalize earnings the way a DSO buyer will.

Disclaimer: These calculators provide estimates for planning purposes only and are not tax, legal, or financial advice. Tax treatment of a dental practice sale depends on deal structure, asset allocation, your basis, and your state. Consult a dental CPA and transaction attorney before acting.