ESOP
Compare exit options
Every route out of your practice trades something. This is what each one usually costs and gives back.
| Option | Control after | How you get paid | Your team | Who sets the timing |
|---|---|---|---|---|
| DSO sale | Usually transfers with the sale, including staffing, materials, and systems. | Often part cash, part earnout, sometimes rollover equity you do not control. | No ownership. Roles and pay can change after closing. | Set by the buyer and its fund timeline. |
| Private buyer or associate buy in | Shared, then handed over. Depends heavily on the individual. | Frequently seller financed, so you carry the risk until it is paid. | Continuity depends on the new owner. | Limited by how many qualified buyers can actually fund it. |
| Work until you stop | Fully retained until the day you close the doors. | Income while you work, and little or nothing for the business at the end. | Jobs end with the practice. | Decided by your health and stamina. |
| Employee ownership (ESOP) | Retained. You continue to operate the practice. | Staged liquidity supported by an independent valuation, with possible IRC 1042 treatment. | Staff accrue ownership through the plan. | Chosen by you across multiple stages. |
None of these is automatically right. A strong DSO offer can beat a poorly structured plan, and a great associate can be the best outcome for a small practice. What matters is comparing them on the same terms rather than on the headline number.
About the multiples you hear
Quoted multiples in dentistry vary widely, and the number attached to an offer is rarely the number that lands in your account. A multiple applied to adjusted earnings assumes your owner compensation has been normalized, your collections are clean, and the practice is not dependent on you alone.
Treat every range you see, here or anywhere, as an illustration of the mechanics. What matters is the structure underneath it: how much is cash at closing, how much is contingent, how long you must stay, and what happens if targets are missed.
Not sure this applies to you? See who employee ownership fits.
The other path
Real estate is the other path
Ownership of the building you practice in runs alongside ownership of the practice itself. The two are separate decisions and either one can come first.
Explore real estateAbout the numbers on this page
- Any figures or ranges shown here are illustrative examples. They are not a forecast, a promise, or a typical result.
- Nothing on this page is an offer to buy or sell securities, or an offer to enter a transaction of any kind.
- What a practice is actually worth, and how a sale is structured, depends on that practice's own performance, market, and deal terms.
- Talk to your own tax advisor and your own attorney before making a decision. We are not providing tax, legal, or investment advice.
Know your number before anyone quotes you one.
A clear read on the practice changes every conversation that follows.