Retirement is one of the biggest steps in a dentist’s life. After years of caring for patients, it’s time to think about your future and what comes next. If selling your dental practice is a major part of that plan, know that 65% of dentists nearing retirement cite practice valuation as their top concern, according to the American Dental Association Retirement Survey.

Collectively, we have appraised and/or sold thousands of practices. As experts in the industry, we have contrived this 36-month retirement checklist to help you move through the process with confidence and less stress. If you’re a California dentist planning to retire, starting early gives you more control. You can prepare your finances, organize your records, and find the right buyer at the right price. This guide outlines each step of the 36-month plan to help you retire with peace of mind and a strong financial foundation.

1. Why a 36-Month Retirement Checklist Works

Many dentists wait too long to prepare for retirement and end up feeling rushed. A 36-month timeline lets you plan carefully. It helps you:

  • Protect your practice’s value: The earlier you prepare, the easier it is to strengthen your numbers and reduce expenses.
  • Make informed choices: You’ll have time to compare offers, plan your retirement income, and talk to your financial advisor.
  • Reduce stress: Knowing what comes next allows you to enjoy your final years in practice instead of worrying about the sale.

Selling in California’s active dental market requires preparation. Following a clear, comprehensive checklist will help you stay on track and reach your retirement goals.

2. 36 to 24 Months Before Retirement: Build Your Foundation

The first stage of your retirement checklist is about getting ready for the sale.

a. Get a Current Market Valuation

Your dental practice is one of your most valuable assets. Schedule a current market valuation through Professional Practice Sales of The Great West (PPS). They’ll assess your revenue, patient base, and goodwill to determine what your practice is worth in today’s California market.

b. Create a Retirement Plan

Meet with a financial advisor who understands healthcare. Review your retirement income, savings, and Social Security benefits. Check your IRA and other retirement accounts. Look at possible adjustments for insurance coverage, taxes, and investments.

c. Improve Financial Health

Take a close look at your cash flow. Pay off debt where possible. Track expenses and find small ways to improve your bottom line. Consider updating fees or adding services that attract more patients.

d. Review Personal Finances

Estimate your living expenses and healthcare needs after retirement. Use a simple calculator to see how your savings and retirement income align. Make sure your insurance policy and life insurance coverage are current.

3. 24 to 18 Months Before Retirement: Make Your Practice Shine

This phase is about improving the value and day-to-day function of your office before listing it.

a. Strengthen Your Team and Systems

A reliable, trained team is a major asset. Document office procedures, adjust workloads, and keep communication open. Buyers prefer practices that can run well without the owner being there every day.

b. Update Equipment and Technology

Modern tools can improve both patient care and practice value. Replace outdated items and make sure your software is current. Keep maintenance records for major purchases.

c. Simplify Operations

Organize files, streamline billing, and cut unnecessary expenses. Clean, efficient operations make your practice more appealing to potential buyers.

d. Meet with a Transition Advisor

An experienced broker like PPS can help identify serious buyers and prepare your marketing plan. They can also review your pricing and terms, so you don’t leave money on the table.

4. 18 to 12 Months Before Retirement: Prepare for the Sale

Once your practice is in strong shape, it’s time to focus on the sale itself.

a. Organize Legal and Financial Records

Make sure all contracts, leases, and licenses are current. Gather tax returns, payroll data, and expense reports from the last three years. Having this ready helps buyers trust your numbers.

b. Evaluate Buyer Options

Work with your broker to find qualified buyers. PPS keeps a network of pre-screened buyers throughout California. They can help you match with someone whose goals fit your practice’s culture and patient care values.

c. Prepare for Due Diligence

Be ready to answer questions about your financials and daily operations. Buyers will want proof of performance and details about staff and patients. Keep everything accurate and easy to find.

d. Review Your Retirement Income

Revisit your retirement accounts and savings plan. Confirm that your cash flow after the sale will cover living expenses and healthcare. Adjust your investment strategy as needed with your financial planner.

5. 12 to 6 Months Before Retirement: Transition Planning

Now it’s time to plan for a smooth handoff.

a. Set a Transition Timeline

Work with your broker to build a timeline for the transition. This should include staff communication, patient letters, and license transfers. PPS often completes transitions in 120–150 days, keeping the process organized and on schedule.

b. Communicate Openly

Once you have a confirmed buyer, meet with your staff. Share what’s happening and introduce the new owner when possible. Calm, honest communication helps maintain stability during the change.

c. Plan for Healthcare

If you’re nearing 65, apply for Medicare or supplemental insurance. Review your healthcare provider options if you plan to relocate after retiring.

d. Define Your Retirement Lifestyle

Start planning what your daily life will look like. Think about hobbies, travel, volunteering, or part-time consulting. Knowing what comes next can help you adjust more easily.

6. 6 Months to Retirement: Final Steps Before Closing

You’re in the home stretch. This stage focuses on final approvals and preparing for your next chapter.

a. Review and Sign the Sale Agreement

Before signing, go through every part of the agreement with your broker and attorney. PPS works with legal experts to ensure fair terms and proper documentation.

b. Transfer Licenses and Assets

Notify the California Dental Board and other agencies about your sale. Update vendor contracts, insurance policies, and DEA registrations to reflect the new ownership.

c. Handle Final Finances

Settle all accounts, pay remaining balances, and confirm employee payroll. Meet with your advisor to plan any tax payments or retirement account rollovers. Keep your cash flow steady as you transition into retirement.

d. Reflect and Celebrate

You’ve built something valuable. Take time to thank your team and patients. Enjoy the satisfaction of completing your professional journey on your terms.

7. After Retirement: Stay Secure and Active

Selling your practice doesn’t mean your planning ends. Keep your finances and lifestyle balanced.

  • Track your expenses and income: Review your accounts yearly with your advisor.
  • Stay engaged: Many retirees choose to teach, consult, or mentor younger dentists.
  • Check your insurance and estate plans: Make sure your policies and beneficiaries match your current goals.
  • Invest wisely: If you gained equity from your practice sale, explore safe investment options that provide steady income.

A great retirement is about staying active, healthy, and financially confident. The work you’ve done to follow this comprehensive checklist will continue to benefit you for years.

FAQs: Retirement Checklist for Selling Your CA Practice

Start at least 36 months before your target date. This gives you time to prepare your finances, find buyers, and plan your next steps.

With professional help, most sales close within 120–150 days after listing.

Use a simple calculator or meet with a financial advisor to plan based on savings, Social Security, and sale proceeds.

Wait until a serious buyer is ready. Then share your plan clearly to avoid confusion or concern.

Yes. Many dentists stay on part-time for a few months to help the new owner transition and keep patient care steady.

Plan Early and Retire with Confidence

Planning ahead makes all the difference. Following this Retirement: 36-Month Checklist for Selling CA Practice helps you organize your goals, protect your investment, and enjoy a stable retirement.

At Professional Practice Sales of The Great West (PPS), we’ve helped California dentists retire with confidence for over 50 years. We guide you through every detail, valuation, buyer matching, and final paperwork, so your retirement can start right.

Ready to get started? Call (800) 422-2818 or visit our website to schedule your free practice valuation today.