ESOP
Who it's for
This is not the right answer for every dentist, and we would rather say so early.
It tends to fit when
- You own a profitable practice and are five to fifteen years from stepping back.
- You want liquidity now without giving up how the practice is run.
- You have a team that has been with you a long time and you want them to benefit.
- You have turned down a DSO offer because of the strings attached.
- You want to grow through added service lines rather than sell and coast.
- You would rather choose your own exit date than inherit someone else's.
It usually does not fit when
- You want to be fully out and fully paid in the next few months.
- The practice depends entirely on you and would not run for a month without you.
- Earnings are thin or unstable, so a valuation would not support a meaningful sale.
- You are not interested in operating after a sale in any capacity.
- You want the highest possible headline number regardless of structure.
If you are somewhere in between, that is normal. Most owners are. The assessment stage described in how it works exists to answer this question with your actual numbers rather than a checklist.
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.
Start with the practice, not the transaction.
A clear picture of the business tells you which exits are even available to you.