Selling a Dental Practice: How to Maximize Value and Attract Buyers

February 17, 2025
Written by: Jordon Comstock

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Thinking of selling a dental practice? Congratulations—you’ve made it to the golden gates of entrepreneurial success! Selling your practice is like putting your baby on the market. But the good news? If you play your cards right, you can command top dollar. The secret sauce? Adding value with smart strategies, like setting up a patient membership program.

This article is your no-holds-barred guide to turning your dental practice into the hottest commodity on the market. Let’s dig in.


The Current State of the Dental Practice Market

The dental industry is booming, but buyers are getting smarter. They’re not just looking for practices with shiny equipment—they’re looking for financial stability, predictable revenue, and growth potential.

Key Stats to Know

  • The average dental practice sells for 60-80% of annual revenue.
  • Practices with predictable revenue streams sell for 20-40% higher multiples.
  • Buyers are prioritizing practices with recurring revenue models, like patient membership programs.

How to Increase the Value of Your Dental Practice

Want to sell for a premium? Then you need to build value like a boss. Here’s how:

1. Launch a Patient Membership Program

If you don’t have a membership program, you’re leaving money—and value—on the table. Buyers love membership programs because they provide predictable recurring revenue (MRR) and loyal patients.

Benefits of a Membership Program

  • Recurring Revenue: Monthly payments keep the cash flowing.
  • Increased Patient Loyalty: Membership patients stick with your practice, making it easier to show consistent patient retention rates.
  • Higher Patient Spend: Membership patients spend 2X to 4X more than PPO patients.

Case Study: The BoomCloud™ Effect

One dental practice, Smile Works, added a membership program using BoomCloud™. Here’s what happened:

  • Active Members: 800.
  • MRR: $80,000.
  • ARR: $960,000.
  • Buyer Interest: The practice sold for 30% above the initial valuation.

Buyers were thrilled with the recurring revenue and the predictable cash flow it offered.


2. Optimize Revenue Per Patient

Revenue per patient is a key metric buyers analyze when valuing your practice. Membership programs boost this metric significantly.

Metric PPO Patients Membership Patients
Annual Patient Spend $500 $2,000
Retention Rate 60% 90%

More revenue per patient = more value for your practice.


3. Create a Strong Online Presence

A well-branded practice with a killer website, glowing reviews, and active social media profiles makes a fantastic first impression.

  • SEO: Optimize for local keywords like “best dentist near me” and “affordable dental care.”
  • Patient Reviews: Encourage patients to leave 5-star reviews on Google and Yelp.
  • Social Media: Use platforms like Instagram and Facebook to showcase patient testimonials and office culture.

4. Build a Strong Team

Your team is a huge asset. Buyers want to inherit a well-trained, motivated staff. Boost morale with team incentives, like bonuses for signing up new membership patients.


5. Cut the Fat

High overhead? Buyers will notice. Before listing your practice, trim unnecessary expenses and optimize your budget.

  • Average Overhead in Dentistry: 65-75% of revenue.
  • Target Overhead: Aim for 50-60% to appeal to buyers.

Why Membership Programs Are a Game-Changer

Membership programs are more than just a revenue booster—they’re a buyer magnet. Here’s why:

1. Predictable Revenue

MRR and ARR are music to a buyer’s ears. Knowing exactly how much money is coming in every month reduces risk and makes your practice more attractive.

2. Increased Patient Retention

Membership patients are loyal. They’re less likely to jump ship, which means buyers inherit a stable patient base.

3. Easier Transitions

When patients are on a membership plan, they’re less concerned about the “who” and more focused on the “what.” This makes it easier for buyers to step into your shoes.


Case Study: How BoomCloud™ Boosted Practice Value

Practice Name: Riverfront Smiles
Location: Portland, OR

The Before

  • Heavy reliance on PPOs with 40% write-offs.
  • Unpredictable cash flow.
  • Frustrated patients and staff due to insurance hassles.

The After

  • Active Memberships: 1,200.
  • MRR: $135,000.
  • ARR: $1.62 million.
  • Practice Sale Price: 35% above the initial valuation.

BoomCloud™ helped Riverfront Smiles automate their membership program, making it an easy-to-transfer asset for the buyer.


What Buyers Look for in a Practice

When buyers evaluate a dental practice, they’re looking for a few key factors:

  • Recurring Revenue: Membership programs provide this in spades.
  • Growth Potential: Practices with scalable systems, like automated billing through BoomCloud™, are more attractive.
  • Patient Retention: A loyal patient base reduces the buyer’s risk.

The Emotional Side of Selling

Selling your practice isn’t just a financial decision—it’s an emotional one. You’ve poured your heart and soul into building your practice, and you want to see it thrive under new ownership. Setting up a membership program ensures your patients will continue receiving top-notch care, even after you’ve moved on.


Final Thoughts: Selling a Dental Practice

If you’re serious about selling your practice, start implementing these strategies today. A patient membership program is the most effective way to increase loyalty, optimize revenue, and make your practice irresistible to buyers.

Ready to get started? Schedule a demo with BoomCloud™ and discover how easy it is to scale your membership program and boost your practice’s value.

Selling your practice is a big deal. Do it right, and you’ll walk away with the payday—and legacy—you deserve.

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vision-membership-plan-ebook Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & increase sales!

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Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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