The Current Perio Practice Market: A Strong Buyer’s Market

By Bob Septak, MBA
UPBA President & Broker

We understand the unique pressures Periodontists face today. From increasing administrative burdens and”I love the clinical work, but I hate dealing with the office stuff.” staff management to an evolving regulatory landscape, we hear it often, If you are feeling the weight of ownership and are considering a transition to a more balanced future, you might be asking yourself:

• Can I sell this myself
• Do I really need a broker?

While the DIY approach might seem tempting to save a fee, the risks are high. 

• How will you calculate an accurate valuation without selling yourself short? 
• How will you handle uncomfortable financial conversations with a potential successor while still working side-by-side? 
• Most importantly, how will you find a buyer without alerting your staff and referral base before the deal is done? 

Why a General Broker Isn’t Enough

Selling a periodontal practice is significantly different than selling a general dental practice. It requires a broker who understands the specific nuances of your specialty, including how to ensure goodwill transfers seamlessly and how to maintain the confidence of your referring doctors.

The Risk of Staying Local: 

Many sellers default to a local broker, thinking they have the “pulse” of the local market.  However, here is the reality for Periodontists: The buyer for your practice likely does not live in your city.

While a local broker might be fine for a general dentist, Perio buyers are often willing to relocate from anywhere in the country for the right opportunity. If you only list locally, you miss 90% of the market. At UPBA, we have a niche in the Perio field with a reach that extends nationwide—from Texas to New England and everywhere in between. This not only brings more buyers to the table but increases the chance of a “bidding war” for your practice.

The UPBA Advantage: What We Do For You

When you become a UPBA client, we handle the heavy lifting so you can concentrate on what you do best—keeping the practice humming while we work at maximizing your value.

• Expert Valuation & “True Profit” Analysis: We don’t just look at tax returns. We develop a cash flow analysis that “recasts” your financials to show the true owner benefit and profit. This figure is almost always significantly higher than what your tax return suggests.
• National Reach & Confidentiality: We market to a proprietary database of periodontists and 30 of the largest DSOs in the country. We require all potential buyers to sign a strict Confidentiality Agreement prior to receiving any sensitive information.
• Comprehensive Prospectus: We create a detailed offering memorandum that presents the history, financials, and potential of your practice to serious buyers.
  
• Negotiation & Structure: We field offers, create a competitive environment to get you top dollar, and structure the deal to ensure you get 100% cash at closing.
• Transition Success: From allocating the purchase price and defining non-competes to advising on when to tell your staff, we guide you through the minefield of closing.
  

The Current Market Reality

Based on our experience, transitions are currently taking longer than before. There are more sellers than buyers in today’s market, which gives buyers more choices. Simply hiring an associate is rarely the answer (stats show these arrangements often fail to turn into equity buy-ins). To sell successfully in this environment, you need a competitive edge, a national net, and a correct valuation.