Many dentists assume that preparing to sell a practice starts when they’re ready to list it. In reality, some of the most important work happens quietly, soften months or years before a practice ever goes on the market.
January is one of the most valuable times of the year for practice owners to focus on positioning, not selling.
Why January Is So Important for Sellers
Coming off a full calendar year gives you a clean snapshot of how your practice is actually performing. That makes January the ideal time to identify opportunities to strengthen value while you still have time to act on them.
Early planning allows you to:
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Address issues before buyers see them
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Improve profitability trends rather than explain declines
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Control the story your financials tell
Even small improvements made early can have an outsized impact on valuation.
Start With a Financial Reality Check
Before thinking about an asking price, sellers should focus on understanding their numbers.
Key areas to review include:
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Profit and loss statements, with an eye toward discretionary and one-time expenses
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Hygiene production and reappointment rates
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Provider mix and associate compensation
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Staffing costs and overtime trends
Clean, well-organized financials not only support a stronger valuation, they also reduce friction during buyer due diligence.
Identify and Address “Value Leaks”
Many practices have hidden issues that suppress value but are relatively straightforward to fix if identified early.
Common examples include:
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Underperforming hygiene schedules
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Outdated or inconsistent fee schedules
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Insurance participation that no longer makes financial sense
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Deferred maintenance or equipment concerns that affect buyer perception
January gives you the runway to correct these issues gradually rather than rushing to explain them later.
Clarify Your Transition Goals
Value is not just about numbers, it’s also about structure and expectations.
Ask yourself:
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Do I want to stay on after the sale, and if so, for how long?
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Am I open to seller financing or flexible transition terms?
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What does a “successful” exit look like for me personally?
Having clarity around these questions early helps shape a transaction that fits your goals, not just the highest headline price.
Final Thought
You don’t need to be ready to sell this year for January planning to matter. In fact, sellers who start early often enjoy smoother transitions, stronger buyer interest, and better overall outcomes.
If selling your practice is a possibility in the next one to three years, January is the best time to start maximizing its value. Contact us today for a free consultation!