Ownership and transitions
Succession planning
Planning who will take over a practice, and how, before the owner steps away, whether by sale, hand-off to an associate or another route.
Succession planning is the work of preparing for a change of leadership or ownership. The ADA says older dentists should have a well-planned strategy for stepping down, which may include selling the practice or transferring patients to a younger partner.
Plans can cover timing, a successor, price, the role of the current owner after a sale, and care for patients. Tools often include a buy-sell agreement and a practice valuation. Succession planning is closely tied to an exit strategy, though the first focuses on who comes next.
Legal and tax details vary. Owners should work with their own attorney, CPA and financial adviser. This entry gives a definition only.