Episode summary
How Dentists Can Prepare Their Practice for a Successful Sale
The Dentist Money Show
· · 1 hr 8 min · Hosts: Matt · Guests: Brannon Moncrief
Summary
Brannon Moncrief says dentists should think about a sale long before they plan to exit, because a practice has to be built to be sell-ready whether the timeline is five years or 25 years. He argues that early planning keeps more options open, helps clean up financials, and gives owners time to improve the drivers of marketability and value before a buyer ever appears.
He draws a sharp line between the private buyer market and the DSO market. In private sales, he says pricing is still usually around 70% to 90% of revenue, but younger buyers now want larger, more profitable practices near major metros. In the DSO market, valuations peaked in 2021 and 2022, then cooled as interest rates rose and buyers became more selective. Today, Brannon says DSOs want class A assets with strong growth, multiple doctors, and EBITDA north of $500,000, while using more earnouts, holdbacks, and retained equity to protect downside.
Brannon also says the sale process is as much emotional as financial. He recommends a 3–5 year runway, involving a spouse, CPA, and advisor early, and getting comfortable with what life looks like after dentistry. He warns that messy books, declining production, unique practices that shrink the buyer pool, and last-minute emotional negotiations can all damage value or kill a deal.
Key takeaways
- Brannon Moncrief says dentists need a 3–5 year runway because DSO buyers want a 3–5 year post-close commitment and private buyers want three years of clean financials.
- Brannon says private practices still usually trade around 70% to 90% of revenue, but smaller rural offices with under $700,000 in revenue are getting harder to sell.
- Brannon says DSO buyers now favor class A assets with multiple doctors, eight or more operatories, and EBITDA north of $500,000.
- Brannon warns that poor records, declining production, and excessive personal write-offs can reduce value and scare off buyers.
- Brannon says the emotional side matters: sellers should know what they are moving toward after the sale, not just what they are leaving behind.
Notable quotes
“You need to build a sell ready business. So, you need to be focused on what drives marketability and value when it's time to monetize the business”
“if you've got a 3 to 5 year one runway, most private buyers are looking at a three-year window”
“the earlier you plan, the more transition options that are available to you”
How the episode opens
Consult an adviser or conduct your own due diligence when making financial decisions. General principles discussed during this program do not constitute personal advice. This program is furnished by Dennis Advisors, a registered investment adviser. Welcome back to the Dennis Money Show. We help Dennis make smart financial decisions. I'm a guy named Matt and I am excited to be here with the CEO of McLaren and Associates, Brandon Monree. Brandon, how are you?
Hey Matt, good to see you.
Yeah, good to see you. Yeah, for those of you that don't know, we're on YouTube now. So, all these are going to be on YouTube.
So, Brandon and I can see each other, even though most people that that uh consume this show are just listening. But if you want to go to YouTube, you can see see us talking to each other on video. Brandon, also, we got to get this out of the way really quick.
This is not me trolling you with my Eagles flag behind me. That was not intentional. We just have to get out of the way.
You're You're in Texas. I'm guessing a Cowboys fan.
Not a Cowboys fan. — Okay. Well, then we're good. — I'm the opposite of a Cowboys fan. I grew up in Houston, so I'm uh I'm unfortunately a Texans fan. Uh we think we're going to be decent every year, but we haven't quite gotten there.
Yeah. Well, it could be worse. You could be a Cowboys fan. That's — True. Yeah. Literally every year for I think 27 years it's been Super Bowl this year and then they end up being mediocre. So could be worse. Um okay. Well then I'm glad I'm glad we got that out of the way and I don't feel bad now that I have my I have my Eagle swag here.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- dental practice sale
- dso vs private buyers
- exit planning runway
- practice valuation
- transition strategy
Companies and tickers mentioned
- McLerran & Associates
Watch the episode
Watch “How Dentists Can Prepare Their Practice for a Successful Sale” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Dentist Money Show, this episode and its artwork belong to Dentist Advisors - Financial Planning and Investment Management. Octagon is not affiliated with the show; this page is an independent summary.
