How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How to Sell a Dental Practice

Dental practice sales are fundamentally different from general business sales. The buyer pool is limited to licensed dentists or DSOs, valuations use practice-specific metrics, and transitions require careful management of patient relationships. Here is what you need to know.

Dental Practice Valuation

Dental practices are typically valued as a percentage of annual collections — not EBITDA or SDE — because collections are the most stable and comparable metric across practices. The percentage applied depends on practice type, patient demographics, insurance vs. fee-for-service mix, and equipment condition.

Dental Practice Multiple Ranges

General practice, insurance-heavy

55–70% of annual collections

Lower margins, patient retention risk

General practice, fee-for-service

70–85% of annual collections

Better margins, loyal patient base

Specialty (ortho, oral surgery, etc.)

80–110% of annual collections

Higher margins, referral network value

DSO platform acquisition

5–8× EBITDA

Institutional buyer, management team required

A general practice collecting $1.2M with a strong fee-for-service mix might sell for 75–80% of collections — $900K to $960K — while the same collections in an insurance-heavy practice might yield 60–65%, or $720K to $780K. The difference of $180K+ comes entirely from revenue quality.

DSO Buyers vs. Individual Dentists

The two primary buyer types in dental practice M&A require completely different sale processes and produce different outcomes.

Individual Dentist Buyer

→Pays 55–85% of collections

→SBA financing (10–25% down)

→Slower close (90–120 days)

→Requires seller transition period

→More personal, patient-friendly

→Best for smaller practices (<$1.5M collections)

DSO (Dental Service Organization)

→Pays 5–8× EBITDA (often higher)

→All-cash close, fast (45–90 days)

→May offer equity rollover

→Requires management infrastructure

→Clinical autonomy may be limited

→Best for larger practices ($1M+ EBITDA)

For practices with $500K or more in EBITDA, a DSO sale process is worth exploring — even if you ultimately sell to an individual. The DSO offer often serves as a benchmark that raises the individual buyer's bid or validates your pricing.

The Patient Transition Problem

In dental practice sales, patient retention is the core value preservation challenge. Patients choose their dentist personally — not the practice — which means a poorly handled transition can cause significant attrition and reduce the practice's value post-close.

Best practices for patient transition:

→Co-treat with the buyer for 3–6 months before the seller's departure

→Send a personal letter introducing the new dentist — written by you, not the practice management company

→Keep hygiene staff stable — patients have stronger relationships with their hygienist than with the dentist

→Avoid announcing the sale until closing is certain (staff and patients may leave)

→Maintain your own appointment schedule through the transition period

Key Value Drivers in Dental M&A

Fee-for-service vs. insurance mix

Fee-for-service patients generate higher margins and are more loyal. Every percentage point shift toward fee-for-service before going to market improves your multiple.

New patient flow

How many new patients per month, and from what source? Organic referrals and strong Google reviews command a premium. Heavy dependence on paid advertising or a single referral source is a risk factor.

Equipment age and condition

Buyers will discount for outdated equipment. Digital X-rays, cone beam CT, and modern operatory equipment signal a modern, investible practice. Address deferred equipment issues before listing.

Staff tenure and stability

Long-tenured hygienists and front desk staff reduce patient attrition risk post-close. High turnover is a due diligence flag and a patient-flow risk.

Lease terms

Remaining lease length matters — buyers want 5+ years. If your lease expires soon, negotiate an extension before going to market.

Why You Need a Dental Practice Specialist

Dental practice M&A is a niche — general business brokers don't typically work in it, and dental-specific advisors are not IBBA-certified business brokers in the traditional sense. For a practice under $1M in collections, a dental practice broker with direct buyer relationships is appropriate. For larger practices or DSO conversations, a healthcare M&A advisor is typically necessary.

Ask any broker you interview: How many dental practices have you sold in the past 24 months? What DSOs are you actively working with? What was the average collection multiple achieved? If they can't answer those questions with specifics, they're not the right advisor.