Licenses, documents and fixes buyers look for when you sell a dental practice
| Done | Issue | What to know |
|---|---|---|
| [ ] | Corporate practice of dentistry | Many states restrict who may own a dental practice. Texas, for example, treats owning or operating a dental office that employs dentists as the practice of dentistry, so DSOs use management-services structures while a dentist owns the clinical entity. |
| [ ] | DEA registration | Not transferable without DEA's written consent (21 CFR 1301.52). The buying dentist registers separately; controlled-substance inventory and records transfer under DEA procedures. |
| [ ] | Patient records | HIPAA treats the sale of a practice to another covered entity, and due diligence for it, as "health care operations," so records can be reviewed and transferred within the Privacy Rule's limits. |
| [ ] | Payer contracts and credentialing | PPO participation is personal to the provider/entity. Buyers re-credential or take assignment where contracts allow; gaps here can interrupt collections after closing. |
Private dentist buyers typically pay mostly cash at close from a practice loan, sometimes with a small seller note. DSOs pay a mix of cash and rollover equity plus an employment agreement (often several years), sometimes with earn-out or holdback components.
Plan for 6-12 months from preparation to close for a dentist-to-dentist sale; DSO processes add diligence and a longer post-close employment term.
Rules vary by state; confirm licensing and transfer requirements with counsel. General information, not legal or tax advice.
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