Roughly 34% of dentist owners say they plan to retire within six years, yet many have not started structured exit planning (Beckers Dental). A 36-month dental exit strategy helps California dental practice owners plan for a sale in 2028 instead of rushing at the last minute. Many dentists know they want to sell but are unsure when to start or what steps matter most. Waiting too long can lower the sale price, limit buyer options, and create stress for staff and patients.
A clear three-year exit plan gives you time to improve value, clean up financials, and prepare for a smooth transition. This guide explains how early planning works, how valuation is shaped over time, and how the right support can help you sell a dental practice with confidence.
Why a 36-Month Exit Plan Matters for Dental Practice Owners
Most exit strategies fail because they start too late. Many dentists begin planning only when retirement feels close. By then, there is little time to fix problems or improve results. A 36-month dental practice exit strategy gives you control.
With early planning, dental practice owners can:
- Improve profitability over several years
- Build stronger financial buyers’ trust
- Choose the right buyer instead of settling
- Protect staff and patient care during the transition
In the California dental market, buyers want steady numbers, clear records, and stable teams. A longer timeline helps your dental practice show consistent performance. Early planning also gives practice owners space to think about personal goals, whether that means stepping away fully or staying involved post-sale.
Understanding Dental Practice Valuation Three Years Before a Sale
Practice valuation does not happen overnight. Buyers look at trends, not just one strong year. Starting three years early gives dentists time to influence the numbers that matter.
Dental practice valuations are often based on:
- Earnings before interest, taxes, depreciation, and amortization
- Revenue trends and new patient growth
- Staff stability, including hygienist coverage
- Equipment and technology condition
- Clean and accurate financials
A broker can review these metrics early and flag issues that could weaken your negotiating position. Fixing payroll issues, outdated systems, or unclear add-backs well before selling your practice can raise the final sale price. This matters even more as DSOs and private equity firms rely heavily on EBITDA when reviewing opportunities.
How Exit Strategies Match California Dental Market Trends
Exit strategies should match what buyers want today and what they may want three years from now. In California, the dental market continues to attract DSOs, private equity groups, and group practices looking to grow.
A long-term exit plan allows dentists to:
- Watch buyer demand over time
- Prepare for different buyer types
- Adjust to lending and rate changes
- Improve appeal to buyers entering the market
Market timing affects practice value. Selling when buyer demand is strong often leads to better terms, cleaner LOIs, and fewer issues that can sink a deal. Early planning gives you more choices when the time comes to sell the practice.
The Role of a Dental Practice Broker in Exit Planning
A dental practice broker does more than handle the practice sale. Long before closing the deal, a broker helps shape the exit plan.
Over three years, a broker may help with:
- Annual practice valuation reviews
- Guidance on improving operations
- Defining the right buyer profile
- Coordinating with lenders and advisors
- Managing confidential buyer outreach
This support helps selling your dental practice feel structured instead of rushed. It also helps ensure a smooth transition for staff and patients while protecting confidentiality.
Improving Profitability and EBITDA Before Selling Your Dental Practice
Buyers care about trends. One strong year is not enough. Improving profitability over time builds trust and raises practice value.
Key focus areas often include:
- Payroll and expense control
- Scheduling and chair use
- Fee mix and insurance plans
- Tracking clear performance metrics
Small changes can have a big impact. Even modest EBITDA growth can raise the sale price, especially when DSOs or private equity firms review the practice. Strong numbers also put practice owners in a stronger negotiating position.
Preparing Staff and Operations for a Smooth Transition
Staff concerns can slow or stop a practice sale. Buyers want stable teams and clear roles. Planning early helps protect staff and patients.
Preparation may include:
- Clear job roles and systems
- Training and leadership support
- Addressing pay or staffing gaps
- Thoughtful communication planning
A smooth transition supports patient care and protects goodwill. Buyers want confidence that the dental practice will run well after the selling doctor steps away or reduces hours.
Choosing the Right Buyer and Structuring the Practice Sale
Price matters, but it is not the only factor. The right buyer should match your goals for timing, involvement, and patient care.
Common buyer types include:
- Dentists looking to acquire a turnkey practice
- Group practices expanding locally
- DSOs and private equity firms
A broker helps review LOIs, guide negotiation, and keep the deal on track. With early planning, dental practice owners can compare offers instead of feeling rushed to close the deal.
Tax Planning and Life After the Sale
An exit plan should also address taxes and post-sale life. The way you sell the business affects what you keep.
Early planning helps with:
- Choosing the right sales structure
- Timing income and tax impact
- Coordinating with tax advisors
- Planning for post-sale income
Thinking about these issues early helps avoid surprises and supports a successful transition beyond the practice sale.
Trusted Resources That Support Smart Decisions
Many dentists benefit from reviewing guidance from trusted sources like the American Dental Association and dental finance publications. These resources help explain market trends and support better planning. They work well alongside broker advice and dental support services focused on practice transition and valuation.
Straight Answers to Common Dental Exit Planning Questions
Ready to Plan Your Dental Practice Exit the Right Way?
A 36-Month sale strategy gives dental practice owners time to plan, improve value, and choose the right path forward. Early planning reduces stress, protects staff and patients, and helps maximize the sale price.
If you are a California dentist thinking about selling in the next three years, now is the right time to start planning. Schedule a confidential consultation with us today to review valuation, exit strategies, and transition support built around your goals.
