Ownership and transitions
Partial exit
A sale in which the owner sells part of the practice but keeps a stake or stays on to practice, often in phases.
A partial exit lets an owner step back in stages. The ADA describes a sale of a portion of the practice as a phased buyout. It gives the owner and potential buyers an accurate value now and sets the stage for a full transition later.
The owner may keep a stake, keep working as a dentist, or both for a set time. Terms often include price, timeline and decision rights. A buy-sell agreement can govern the later sale of the rest. A partial exit is one form of practice transition.
Changes that happen during the transition period will inform the final sale price, the ADA notes. Owners should ask an attorney and a CPA about structure and tax effects. This entry is general information.