ESOP
The three bite model
One sale, one payday, one chance to get it right is the usual dental exit. A staged exit is built differently.
First bite
Sell a slice, stay in the chair
A portion of the company is sold into the plan. You take cash off the table while continuing to own and operate.
- Liquidity now, without handing over the practice.
- The team begins accruing ownership.
- You keep your brand, your staff, and your schedule.
Second bite
Grow the value you still hold
The equity you retain is the point. Support, systems, and added service lines are aimed at growing what your remaining shares are worth.
- Retained equity participates in future growth.
- Shared services and referral flow across practices.
- Performance, not promises, drives the next number.
Third bite
Exit on your timeline
When you are ready to step back, the remaining position is sold. The date is yours rather than a fund's.
- No earnout you have to survive to get paid.
- The practice continues under the people who run it.
- Your team keeps their ownership.
An illustration, not a forecast
The example below exists to show how staging changes the shape of an exit. The ranges are made up for teaching purposes. Your practice may fall outside them in either direction.
| Stage | Illustrative range | Assumption behind it |
|---|---|---|
| First bite | A minority of the equity, sold at a valuation multiple in a mid single digit range | Assumes a stable practice with normalized owner compensation and an independent valuation supporting the price. |
| Growth period | Value of retained equity moves with performance, up or down | Assumes continued operation, added service lines, and no adverse market or reimbursement shift. |
| Final bite | Remaining equity sold at the valuation in force at that time | Assumes the plan is funded and a willing buyer exists at your chosen date. |
No multiple shown here should be read as expected or typical. See how this compares to other exits.
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.
Your timeline, your terms.
A staged exit only works if the practice is strong. Start by measuring it.