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

By Bob Septak, MBA
UPBA President & Broker

We are currently in a strong buyer’s market. The supply of available practices is currently outpacing the demand from qualified buyers.

What This Means for Sellers

• Increased Competition: Buyers have multiple quality options to choose from. They are naturally prioritizing the largest, most profitable, and best-equipped practices in desirable locations.

• Challenges for Smaller Practices: Practices that are smaller, less profitable, or located in more rural areas will be harder and take longer to sell.

• Weaker Bargaining Position: A lack of competitive buyers directly correlates to a weaker bargaining position for the seller, often leading to a lower final purchase price.

How Long Will It Take to Sell My Practice?

This is the most frequent question we receive. While we’ve seen a successful perio practice transition in as little as 90 days, that is the exception, not the rule.

In today’s climate, the transition process is taking longer than ever before—primarily due to the imbalance of sellers to buyers.

• Typical Timeline: Sales can range from 6 months up to a year or two.

• The Unsold: As you may know from colleagues, some practices ultimately will not find a buyer if they do not meet certain benchmarks for desirability.

Key Factors Determining Desirability and Value

The speed and success of a sale depend on numerous factors, including:

✓ True Profitability (Cash Flow)

✓ Location

✓ Physical Assets and Technology

✓ Fee-for-Service (FFS) vs. Insurance-Based Revenue Mix

Your Action Plan: Start Sooner Than You Think

To navigate this market successfully and ensure a smooth, timely exit, you must plan well in advance. Starting early is the single most important action you can take.

The timeframe for preparation depends entirely on your desired outcome:

• For a Quick Hand-off or Minimal Transition: We recommend starting your preparation 2 to 3 years before you wish to retire. This gives you ample time to optimize the practice and secure a qualified buyer in the current competitive environment.

• For a Long Transition or a Corporate Sale (DSO): If you are considering selling to a Dental Service Organization, you should start planning 6 to 7 years out. DSOs typically require a 5-year work-back arrangement post-sale, making this a much longer process.

• For Practices Facing a Challenging Sale: If your practice has inherent factors that may negatively impact its sale (e.g., highly rural location or smaller size), you must expand these timelines further to ensure you begin the optimization and search process early enough to find a suitable buyer.

Optimize Profitability Now

Of the two largest factors of desirability—Location and Profitability (Cash Flow)—your location is difficult to change. However, your profitability is entirely within your control and should be addressed well in advance of a sale. This is something UPBA is very adept at.