Smoothly Sell Your Dental Practice to an Associate through Tier Three Brokerage
Are you thinking of selling your dental practice to one of your associate dentists? It is more complicated that you may think. It also involves treading a fine line to maintain the relationship you have, while at the same time negotiating a deal that is the best possible outcome for you.
Let us handle the sensitive discussions while you continue to practice without worry
Your associate already knows many of the details of the practice – but they and their advisors need to gather sophisticated information, and we know exactly what that entails. Allow us to take care of gathering the information and the discussions, where we can anticipate issues and allow you to maintain peace of mind until the transaction is concluded.
Contact us now if you are interested in discussing sale to an associate.
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Selling Your Dental Practice to an Associate in Canada
Understanding the Associate-Purchase Landscape
An associate buy-in can feel like the natural next step after years of collaboration, yet the stakes are just as high as an open-market sale. Associates often possess detailed knowledge of the practice and strong rapport with staff and patients, which means negotiations must protect both goodwill and personal relationships.
Why an Independent Valuation Is Non-Negotiable
Before any price discussions, Tier Three commissions a formal, third-party appraisal that reflects current Canadian market data and the unique metrics of your clinic. Relying on a “back-of-the-napkin” estimate can create distrust and lead to price disputes long after the deal closes.
Setting the Right Bargaining Position
Unlike a public listing, an associate sale gives the buyer intimate knowledge of your production numbers, staff dynamics, and—even more critically—any weaknesses inside the business. Owners without robust non-compete or non-solicitation clauses may find their leverage erode quickly if talks stall and the associate walks away.
Tier Three’s Seamless Associate-Sale Process
- Pre-Sale Planning – Confidential strategy session, independent valuation, and document audit.
- Offer & Negotiation – We draft term-sheet scenarios that align with your financial goals and desired transition timeline, then lead all discussions so collegiality is preserved.
- Due Diligence Management – Our consultants coordinate data rooms, clarify lender queries, and liaise with legal counsel on both sides.
- Closing & Transition – We oversee regulatory filings, communicate the change to patients and staff, and craft a phased clinical hand-off that supports retention.
Typical Timeline From First Conversation to Final Signature
Most transactions progress from valuation to closing in four to five months. The heaviest lift occurs in weeks seven to twelve when financing, lease assignments, and purchase agreements converge. Early preparation shortens this window and mitigates deal fatigue.
Frequently Asked Questions
Can I expect a price discount because my associate “helped build” the practice?
Market evidence shows high-performing practices fetch similar multiples whether sold privately or publicly. Any price concession is therefore a strategic choice, not an industry rule.
Should I stay on after the sale?
This varies a lot depending on you and your associate’s objectives and personalities. We’ll work with you to think through the pros and cons of what your objectives are, and make sure your agreement is structured to help you achieve them, while working to protect you from what can and does go wrong.
What if I have more than one associate?
Tier Three helps owners evaluate who is financially ready, who aligns with the culture, and whether a multi-partner structure or a sequential sale yields the best outcome.
Should I sell part of my clinic to an associate?
Sharing ownership of a business is not easy and can often lead to significant challenges in the future. Tier Three can help you work through the benefits and risks of shared ownership, plus if you decide to proceed with a partial buy in, we can help you guard against the key things we see go wrong with concerning frequency.
