Are you asking yourself, “How do I sell my dental practice in Michigan?” Whether you’re ready now or planning a few years ahead, taking the right steps early will help you achieve a smooth and profitable transition. At DDSmatch, our Michigan dental practice brokers specialize in guiding dentists through Michigan dental practice sales with proven strategies and local expertise.
As the Chinese philosopher Lao Tzu once said, “A journey of a thousand miles begins with a single step.” Selling your dental office is no different. Start now, plan carefully, and work with experienced professionals to maximize your practice’s value.
Step 1: Collect and Organize Your Data
- Gather at least three years of tax returns, financial statements, and practice management reports.
- Review financial documents to identify potential add-backs that improve profitability.
- Ensure your records are clean, accurate, and easy to access.
- Purge inactive or outdated patient files.
- Digitize your records if you haven’t already.
Transition Professional Tip: “Ensure your patient database is clean, up-to-date, and well-segmented. A well-documented, active patient base is one of the most valuable assets in a dental practice for sale in Michigan. Buyers want proof of patient loyalty, recurring revenue, and growth potential,” advises Michele Gabriel, DDSmatch NYC & Long Island.
Step 2: Know Your Worth
Hire a CPA who is also a Certified Valuation Analyst with experience in the dental industry. A professional valuation provides a realistic and substantiated value for your practice. Understanding your worth is key when listing dental practices for sale in Michigan.
Step 3: Clean Up Your Books
- Review patient credit balances and refund any credits older than two years to inactive patients.
- Separate personal expenses from the practice’s financials well before listing.
- Write off aged accounts receivable older than three years and implement a better collections process.
Transition Professional Tip: “Clean up your aged AR—anything older than three years should be written off. Then start a better collections process to reduce non-insurance-related AR,” says Jessica DeMichiel, DDSmatch NY & Western PA.
Step 4: Update Technology and Ensure Compliance
Confirm your IT systems, computers, software, and processes are HIPAA-compliant. Consider upgrades like digital x-rays, paperless systems, and modern practice management software. Upgrading now may also come with tax advantages while improving appeal to buyers seeking a dental office for sale in Michigan.
Step 5: Review Contracts and Lease Agreements
Ensure all associate contracts are transferable to the new owner. Review your lease thoroughly, including any amendments, to ensure it can be easily assumed by the buyer. Ideally, the lease should have at least five years remaining for stability. Some landlords may impose additional conditions or fees during a transfer.
Transition Professional Tip: “Time your transition to leave at least 12 months remaining on your lease with an option to extend,” says Alain Carles, DDSmatch.
Step 6: Boost Your Practice’s Curb Appeal
Make sure your office looks welcoming and professional—first impressions are crucial. Think of your dental office like a home sale: clean, declutter, and create a polished look that helps your listing stand out among dental clinics for sale in Michigan.
Transition Professional Tip: “It doesn’t cost much to add fresh paint and replace outdated flooring, like removing carpet from operatories. Reducing clutter is just as important as buying new equipment. A clean, modern space makes a huge impact,” shares Neal McFadden, DDSmatch Carolinas.
Quick Tips Before Selling
- Implement any overdue staff raises before the sale to reflect accurately on financials.
- If you own your office building, start paying yourself rent to align with buyer and bank expectations.
- Update your fees to reflect current market rates.
- Create a contingency plan for unexpected events like disability or death to protect your legacy.
Ready to Take the Next Step?
Selling a dental practice is a once-in-a-lifetime event for most dentists. As John Kuriger, DDSmatch Florida explains, “You’ve never done this before, so have someone help you.”
Contact your local DDSmatch Professional to learn about our Michigan dental transitions and the Practice Optimizer Experience™—a proven process that helps you plan and prepare in the years leading up to your sale, ensuring you get the most value when it’s time to transition.