Skip to main content

Selling your dental practice in Atlanta is a big step, one that brings up many questions and considerations. You’ve poured years into building your practice, caring for patients, and managing your team. Now, as you think about the next chapter, you want to ensure you navigate the sale process smoothly and achieve the best possible outcome. This article offers insights into the Atlanta dental market, key things to think about, and how to prepare for a successful transition. We understand this journey is significant, and we’re here to provide clarity.

Curious about what your practice might be worth in today’s market?

Selling your Atlanta, GA Dental practice means navigating a robust market where typical valuations range from 70-80% of annual collections, and the sale process often takes 6-12 months. You’re likely asking, “What is my practice worth?” and “Can I financially afford to sell?” Concerns around confidentiality, the financial health of your practice, and tax implications are common. This guide will touch on these crucial points to help you start forming your strategy.

Atlanta’s Dental Market: What Owners Should Know

The dental practice market in Atlanta, GA, is currently strong. We see a healthy demand for well-run dental practices, and valuations are often reflecting this energy. If you’re a practice owner in Atlanta, this could mean a favorable environment for considering a sale. Valuations in the range of 70-80% of annual collections are common, but this is just a starting point. Many factors influence the final number.

The Atlanta area is also on the radar for Dental Support Organizations (DSOs). Selling to a DSO presents different opportunities and considerations compared to selling to an individual dentist. Understanding these differences is important as you explore your options. The key is to be informed about current market conditions to make the best decision for your specific situation.

Key Considerations for Your Atlanta Dental Practice Sale

When you start thinking about selling your dental practice in Atlanta, GA, several important questions and factors come into play. Addressing these early on can make a big difference in your experience and the outcome.

Understanding Your Practice’s True Value

What is your practice really worth? It’s more than just a quick calculation based on collections. Buyers will look deeper at your practice’s profitability, often focusing on metrics like Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, normalized for owner-specific expenses). They also consider your location, patient base, equipment, staff, and growth potential. Getting a clear picture of this value is a first step.

Assessing Your Financial Readiness to Sell

“Can I financially afford to sell?” is a question every owner must answer. This involves looking at your post-sale income needs, retirement plans, and how the proceeds from the sale will fit into your overall financial picture. It’s not just about the sale price, but what that price means for your future.

Guarding Confidentiality

Keeping the news of a potential sale confidential is very important until the right time. Premature disclosure can unsettle staff and patients. A well-managed sale process prioritizes discretion, ensuring that information is shared only with serious, vetted potential buyers under strict confidentiality agreements.

Ensuring Your Practice’s Financials are in Order

Your practice’s financial records will be closely examined by potential buyers. Clean, organized, and accurate financials inspire confidence and can speed up the sale process. This means having your profit and loss statements, balance sheets, and tax returns ready for review.

Navigating Tax Implications

The way your sale is structured can have significant tax consequences. Understanding these implications beforehand allows you to plan effectively and potentially maximize your after-tax proceeds. Different sale structures (like an asset sale versus an entity sale) have different tax treatments.

Thinking through these points can feel like a lot. That’s why many practice owners choose to work with advisors who specialize in medical M&A. They can provide clarity and help you create a strategy.

Every practice sale has unique considerations that require personalized guidance.

What’s Happening in the Atlanta Dental Market? Recent Activity

The market for dental practices in Atlanta is active. We’re seeing practices of various sizes and specialties successfully transition to new ownership. For example, recent transactions show a range of sale prices, reflecting the unique characteristics of each practice. One Atlanta-area practice with $1,340,929 in collections sold for $950,000. This specific example highlights that while general collection multiples exist, the final price achieved is a result of many specific factors.

Interest from Dental Support Organizations (DSOs) continues to be a feature of the market. DSOs bring a different model of ownership and operation, which can be attractive to some sellers. This activity means sellers often have multiple types of buyers to consider, from individual dentists looking for their first practice to larger groups seeking to expand their footprint in the Atlanta region. This dynamic environment underscores why understanding current trends and timing your sale appropriately can be beneficial.

The Typical Journey: 5 Steps in Selling Your Dental Practice

Selling your dental practice in Atlanta usually takes between 6 to 12 months from start to finish. Proper preparation is key and can really impact your final practice value. Heres a general look at the steps involved:

  1. Getting Ready: Valuation and Preparation First. This is where you get a clear idea of what your practice is worth. Its not just a guess; its a detailed look at your financials, operations, and market position. We help owners understand their Adjusted EBITDA and how buyers see value. This stage also involves gathering all necessary documents and making your practice look its best for potential buyers. This might be the time to address any small operational issues that could be fixed to improve value.
  2. Taking Your Practice to Market (Quietly). Once you’re ready, the next step is to find the right buyers. This isn’t like putting a “for sale” sign out front. It’s a confidential process where we reach out to a network of qualified buyers, ensuring your staff and patients don’t know about the sale until you’re ready to tell them.
  3. Looking at Offers and Talking Terms. You may receive interest from several potential buyers. We help you sort through these offers, understanding not just the price but all the terms involved. Negotiation is a key part of this, aiming for a deal that meets your financial and personal goals.
  4. The Deep Dive: Buyer Due Diligence. This is where a potential buyer closely examines your practice 6 financials, legal documents, patient records (with appropriate privacy measures), and operations. It’s a thorough process, and being prepared for it is crucial. Many sales hit bumps here if things aren’t in order.
  5. Closing the Deal and Moving On. Once due diligence is complete and everyone agrees, you move to closing. This involves legal paperwork to transfer ownership. After the sale, theres usually a transition period where you help the new owner settle in.

The due diligence process, in particular, is where many practice sales face unexpected challenges. Having support here can make a big difference.

The due diligence process is where many practice sales encounter unexpected challenges.

Understanding Your Practice’s Value in Atlanta

So, how much is your Atlanta dental practice actually worth? While you may hear about practices selling for a certain percentage of annual collections 6 often 70-80% in the Atlanta market 6 that’s really just a starting point. A true valuation goes much deeper. At SovDoc, we look at your practice like a private equity firm would, analyzing the quality of your cash flow, the risks, and the future potential.

A key number we focus on is Adjusted EBITDA. This means we take your reported earnings and adjust for things like owner-specific expenses (maybe a car lease run through the business or a salary thats above or below market rates) and any one-time costs. This gives a clearer picture of the practice’s true profitability. Then, we look at what similar practices are selling for, considering factors like your specific dental specialty, the size of your practice, your payer mix, how reliant the practice is on you personally, and its growth prospects. For instance, a multi-provider, associate-driven practice often gets a higher valuation multiple than a solo practice. It’s a detailed process, but getting it right is the foundation of a successful sale.

A comprehensive valuation is the foundation of a successful practice transition strategy.

After the Ink Dries: Planning for What’s Next

Selling your practice isn’t just about the transaction day; it’s also about what comes after. Thinking ahead about post-sale matters can help you ensure a smoother transition for yourself, your staff, and your patients, and can also significantly affect your long-term financial well-being. There are several key areas that deserve your attention, and planning for these with expert advice can be very helpful.

Here are some common post-sale considerations:

Aspect to Consider Why It Matters for Your Future
Tax Implications of Sale Proceeds Understanding and planning for taxes on the sale can maximize what you keep. The structure of your sale plays a big role here.
Wealth Management & Re-investment You’ll need a plan for the proceeds to ensure your financial security and support your future goals, whether thats retirement or a new venture.
Staff Transition & Communication Your team is a valuable asset. A well-thought-out communication and transition plan helps maintain morale and ensures continuity of care.
Your Role (If Any) Post-Sale Will you stay on for a period? Are there earnout conditions? Clarifying your involvement upfront prevents misunderstandings.
Preserving Your Legacy Youve built something important. Thinking about how your practice’s contribution to the community will continue can be a key part of your satisfaction.

Navigating these aspects successfully often requires careful planning and strategic advice. For example, how your sale is structured has major implications for your after-tax proceeds. It’s wise to get guidance on this early in the process.

The structure of your practice sale has major implications for your after-tax proceeds.


Selling your Atlanta dental practice is a journey with many steps. By understanding the market, considering key questions, and preparing thoroughly, you can approach this milestone with confidence. If you have questions or want to discuss your specific situation, we at SovDoc are here to help you navigate the path ahead.


Frequently Asked Questions

What is the typical valuation range for a dental practice in Atlanta, GA?

Dental practices in Atlanta, GA, typically sell for 70-80% of their annual collections. However, the final valuation depends on multiple factors such as profitability, location, patient base, equipment, staff, and growth potential.

How long does the sale process usually take for an Atlanta dental practice?

The sale process for a dental practice in Atlanta generally takes between 6 to 12 months from start to finish, including valuation, finding buyers, negotiations, due diligence, and closing.

What financial factors should I consider before selling my dental practice?

You should assess your post-sale income needs, retirement plans, and how the proceeds from the sale fit into your overall financial picture. Understanding your practice’s Adjusted EBITDA and having clean financial records is crucial for a successful sale.

How can I maintain confidentiality during the sale of my dental practice?

Confidentiality is key to preventing disruption. The sale process should be managed discreetly by sharing information only with serious, vetted buyers under strict confidentiality agreements to keep staff and patients unaware until the right time.

What are important post-sale considerations after selling a dental practice in Atlanta?

After the sale, consider tax implications to maximize proceeds, wealth management and reinvestment strategies, staff transition and communication plans, your role post-sale (if any), and preserving the legacy of your practice. Planning these aspects carefully supports a smooth transition and long-term satisfaction.