In today's ever-evolving dental landscape, planning for your practice's future is no longer optional—it's essential. Whether you're years away from retirement or entertaining DSO offers now, how and when you transition out of dentistry can make or break the legacy you've worked so hard to build.
We had the pleasure of speaking with Fred Heppner from Arizona Transitions. With decades of experience in dental practice transitions, Fred shared insights every dentist should hear—whether you're just starting out or nearing retirement.
Why You Need a Transition Plan Early
A transition plan isn't just about selling your practice when you're ready to retire. It's about:
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Knowing what you'll do when you're no longer in the operatory
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Planning for unexpected illness, disability, or even death
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Protecting your team, patients, and financial future
Too often, dentists avoid thinking about this until it's too late. Fred recommends building your transition plan 3–5 years ahead of time, and we both agree—you don't have to figure it out alone. Get a financial advisor, work with a transitions expert, and build your plan before life forces your hand.
The DSO Landscape: Hype vs. Reality
DSOs are attractive—on paper. Some offer 8–10x EBITDA, stocks, and workback arrangements. But as Fred shared, it's crucial to:
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Vet the financials of the DSO before taking equity
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Understand the holdbacks and clawbacks tied to performance
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Know what you're giving up in autonomy and patient relationships
Yes, DSOs are buying, but private practice sales are still thriving. Don't assume a private buyer won't pay your asking price—many will, especially if your practice is profitable and well-run.
Associates: Hiring and Transitioning Wisely
Fred and Kiera also dug into associateships and how they can lead to long-term partnerships—or become your biggest liability.
Tips for success:
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Don't rush: Vet associates thoroughly before hiring
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Set a trial period: 6–12 months to ensure clinical and cultural fit
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Offer a phased buy-in: Once the associate proves traction, gradually introduce equity options
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Use well-crafted agreements with clearly defined compensation, restrictive covenants (where legal), and exit clauses
Associates can become your exit strategy, but only if you build the relationship right.
Bottom Line: Your Practice Is a Valuable Asset. Treat It That Way.
You built a successful practice through hard work, relationships, and smart decisions. Continue that legacy by taking the same thoughtful approach to your transition.
Whether it's:
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Planning your exit 5 years from now
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Deciding between DSO and private buyers
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Or setting up the perfect associate-to-partner path
...the decisions you make today will determine your options tomorrow.
Need help creating a strategy? Contact Fred Heppner at ArizonaTransitions.com. He works nationwide and is passionate about helping doctors with their dental transitions! The best time to plan was yesterday. The next best time is now.
And if you're ready to create systems, strategy, and scalability before your exit—schedule a call at TheDentalATeam.com/growth. Let's make your practice work for your long-term goals!
Don't forget to check out our podcast for more tips.
