Planning your exit: How to leave your dental practice on your terms

By Simon Cosgrove, Dental Regional Manager at Wesleyan Financial Services.

Exiting your dental practice is a significant career milestone – yet planning for it is often postponed or overlooked.

Whether you’re looking to retire, pursue a new venture or simply step away from ownership, having a clear, well-thought-out exit strategy is essential.

Here we’ll talk through each stage of the process and some common pitfalls, helping you ensure your exit is as rewarding as the years you’ve spent building your practice.

Start with your goals

Before you do anything, take some time to define what you really want from your exit. For example:

• When do you want to leave? Creating a timeline for your exit can help shape your plan. Are you aiming for a specific age or milestone?
• What income will you need post-exit? Understanding your financial needs will help you plan where your income will come from – whether it’s sale proceeds, your pension or other assets.
• Do you want to stay involved? Many dentists ease into retirement by staying connected to the practice through part-time work, mentorship or advisory roles.
• Is family succession an option? Consider whether succession within your family is an option, or if selling to an outside buyer makes more sense for your goals.

Choosing how to sell

There isn’t a one-size-fits-all approach to selling your practice, and the best option will depend on your individual circumstances.

Here are some common sales methods to consider:

• Selling privately to another dentist – A private sale can help you avoid broker fees and give you more control over negotiations. However, you’ll have to find the right buyer yourself, which can take time.
• Associate-to-owner transition – Passing your practice onto an associate is often the smoothest option, with minimal disruption to staff and patients. Be sure to set out your exit terms early though, so both parties are clear on when full ownership transfers.
• Use a specialist broker – A good broker can connect you with approved dental professionals interested in buying your practice. If you choose this option, be sure to find a specialist with experience of the dental practice market.
• Merge with another practice – A merger can strengthen both businesses, but each practice will have its own culture and brand that will require careful management.

Create a clear transition plan

A successful exit doesn’t happen overnight. Ideally, planning starts 10 years before you leave. In these early stages, you should be defining your long-term goals, reviewing your finances and starting to prepare your practice for sale.

When you reach five years out, focus on making the practice as attractive and saleable as possible. This might include carrying out a professional valuation and beginning to delegate responsibilities to your associates.

In the final two to three years, your planning becomes action – from finalising financial statements to preparing legal documents and building your transition team (for example, an accountant, solicitor and financial planner).

Avoiding common pitfalls

Planning your exit strategy can be complex, so it’s a good idea to familiarise yourself with some common pitfalls you might experience along the way. For example:

• Leaving planning too late – A rushed exit can lead to reduced practice value and limited buyer choices.
• Overestimating valuation – Work with a professional rather than relying on industry rule-of-thumb.
• Poor communication – Failing to communicate properly with your patients and staff can damage morale, retention and goodwill.
• Ignoring tax implications – Without careful planning, you could face unexpected tax bills – for example, Capital Gains Tax (CGT) on the practice sale.
• Checking your partnership agreements – If you’re part of a partnership, check what your agreement allows before planning a sale. Some contracts include clauses that restrict when partners can retire, or limit how new partners can buy in.

Tax treatment depends upon your individual circumstances and may be subject to change in the future.

Life after dentistry

Leaving practice ownership can feel like losing part of your identity, but it doesn’t have to. Remember, stepping away is as much about what you’re gaining as it is about what you’re leaving behind.

Whatever your next chapter looks like, financial freedom is key to making it a reality. At Wesleyan Financial Services, our Dental Specialist Financial Advisers can help you make informed decisions and support a smooth transition into your next chapter.

Visit wesleyan.co.uk/dental or call 0808 149 9416.

Please note: Charges may apply. You will not be charged until you have agreed to the services you require and the associated costs. Learn more at www.wesleyan.co.uk/charges.

About Simon

Having built vast experience as a Special Financial Adviser (SFA) over the years, Simon Cosgrove is now a Dental Regional Manager at Wesleyan Financial Services, guiding a team of dental SFAs to support dentists, their families and their practices with expert planning to secure their financial future.

Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.