If you’re a dentist in Colorado or Wyoming thinking about buying or selling a dental practice, understanding the true costs involved is a crucial first step. At DDSmatch, we work with dentists every day who are navigating the complex but rewarding process of dental practice transitions. Whether you’re a retiring owner or a new buyer, knowing the financials can help you make informed decisions with confidence.
From valuation percentages to legal and operational costs, this guide breaks down the most common expenses and factors, so you can move forward with clarity and peace of mind.
This Article Will Address:
- How much it typically costs to buy a dental practice
- What expenses are involved in selling a dental practice
- What happens to your team during a transition
- The long-term costs of owning a dental office
- Ways to reduce expenses and streamline your transition
- Why working with DDSmatch gives you a competitive advantage
What Determines the Cost to Buy a Dental Practice?
Most dental practices are sold for 60%–80% of their previous year’s gross revenue—a figure widely cited by the American Dental Association (ADA). On average, this equates to around 72%, but that number can vary based on a number of local and operational factors.
Here’s what typically contributes to the cost:
- Location and patient base: High-traffic, well-established practices often command higher prices.
- Profitability: The cash flow of the practice has a significant impact on the value of the practice.
- Equipment condition: Outdated technology may require upgrades that add to your upfront investment.
- Staffing commitments: Salaries and benefits for retained staff should be factored into ongoing expenses.
- Real estate and lease agreements: Will you be leasing the space or buying it outright?
- Working capital and/or the accounts receivable: You may need funds set aside for transition support and marketing, and possibly the accounts receivable
Starting a practice from scratch may cost upwards of $500,000, according to ADA estimates, so purchasing an established one is often more efficient both financially and operationally.
How Much Does It Cost to Sell a Dental Practice?
The cost to sell your practice will vary depending on how you choose to structure the transition. Here’s a breakdown of the most common seller-side expenses:
- Practice Valuation Report: ~$2,500+
- Legal Fees: Typically $150–$400 per hour
- Broker Commissions: Usually 10% of the sale price
- Accounting and Financial Prep: ~$2,000 or more
These costs can fluctuate based on the complexity of the sale, how well-prepared your documentation is, and whether you’re working with an experienced transition team.
At DDSmatch, we guide you through The Trusted Transition Process®, which is designed to reduce surprises, avoid delays, and ensure you get fair market value for your practice. While some dentists attempt to handle transitions independently, doing so can expose you to major risk, especially when negotiating with DSOs or structuring post-sale arrangements.
What Happens to Staff When a Dental Practice Is Sold?
This is one of the most common concerns we hear from both buyers and sellers. The good news is that in most transitions, staff are retained to preserve continuity and ensure a smooth handoff for patients.
DDSmatch supports this by helping with:
- Employment contract reviews
- Benefits alignment for existing staff
- Team communication plans to reduce stress and uncertainty
Well-managed transitions prioritize people over paperwork—and that includes your hygienists, front office staff, and assistants who help make your practice what it is today. While some roles may be adjusted, layoffs are rare in professionally managed sales.
What Does It Cost to Own a Dental Office Long-Term?
Owning a dental practice means managing several ongoing expenses, many of which vary depending on location, size, and staffing needs. Here’s a snapshot of what you can expect:
- Rent or Mortgage: Varies based on real estate market and property size
- Staff Salaries & Benefits: Often the largest monthly expense
- Clinical Supplies & Lab Fees
- Licensing, Insurance, and Continuing Education
- Technology Updates & Maintenance
In Colorado and Wyoming, costs can differ dramatically between urban and rural settings—often by 20–30% depending on patient flow and market conditions. DDSmatch helps you analyze these financials in advance so you’re prepared for long-term success.
How Can You Reduce the Cost of Buying or Selling a Dental Practice?
There are several smart ways to control costs during a dental transition, without cutting corners:
- Start with a readiness assessment. DDSmatch uses the Practice Optimizer Experience™ for sellers to evaluate your transition timeline and highlight opportunities to increase value.
- Organize your records. Clear and accessible financials reduce legal and accounting hours.
- Weigh lease vs. purchase options. Owning your building may improve sale value, while leasing offers more flexibility.
- Partner with experts. Avoiding missteps often saves more than going it alone.
With DDSmatch, every phase of the transition is handled with strategy and care—so you can focus on your patients and your next chapter.
Why Work with DDSmatch for Transitions in Colorado & Wyoming?
Navigating a dental practice transition in Colorado or Wyoming requires more than just a broker. You need a partner who understands both the business and clinical sides of dentistry—and who has deep roots in your community.
Here’s why DDSmatch stands out:
- 20+ years of dental finance and real estate experience
- Licensed real estate broker in Colorado
- Proven processes like The Trusted Transition Process®
- Local knowledge of dental market trends in CO and WY
- Buyer and seller support tailored to individual goals
Whether you’re selling your legacy or buying your first practice, we’ll be with you every step of the way.
Ready to Buy or Sell a Dental Practice in Colorado or Wyoming?
Whether you’re planning your next career move or preparing for retirement, DDSmatch can help you navigate every cost and decision with confidence. Reach out to Jeremy Keck and the DDSmatch team today to schedule your consultation and start planning your transition in Colorado or Wyoming.