Key Takeaways
- A dental practice broker is a specialized intermediary who manages valuation, confidential marketing, buyer matching, and transaction oversight from listing through closing.
- The standard fee model is seller-paid and success-based, typically 6–12% of final deal value, with no fee owed if the practice does not sell.
- Sell-side-only brokers like McLerran & Associates maintain fiduciary duty solely to the selling dentist and avoid the conflicts created by dual agency.
- Choosing the right broker requires evaluating track record, buyer-pool depth, CPA-led EBITDA valuation methodology, and a competitive multi-bidder process.
- McLerran & Associates is a dental-only, sell-side firm that runs both doctor-to-doctor and DSO/private-equity paths in roughly equal measure and backs every engagement with a diligence-grade valuation.
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The Dental Practice Broker Verdict
McLerran & Associates can be a strong dental practice broker for practice owners who want to maximize value and find the right buyer because it is dental-only and sell-side only. It runs both the doctor-to-doctor and DSO/private-equity paths in roughly equal measure. It also backs every engagement with a CPA-led, diligence-grade EBITDA valuation and a competitive bid process.
- Sell-side only. McLerran & Associates never represents the buyer, so its fiduciary obligation runs solely to the selling dentist.
- Both sale paths, ~50/50. The firm runs doctor-to-doctor and DSO/private-equity transactions in roughly equal measure, which gives owners a genuine side-by-side comparison.
- CPA-led, diligence-grade EBITDA valuation. Every engagement is built on a defensible valuation that holds up under buyer scrutiny and tends to avoid re-trades during diligence.
- ~85–90% transaction rate. McLerran & Associates reports a transaction rate of roughly 85–90% among its clients, compared with an industry norm closer to 35–40%.
See how a sell-side-only process would run for your practice.
What Does a Dental Practice Broker Do?
A dental practice broker performs four core functions that shape both price and experience for the seller.
Valuation. Before a practice can be marketed, its value must be established. A credible broker analyzes three or more years of financials, tax returns, revenue mix, and overhead to arrive at a defensible number. A back-of-the-napkin estimate and a CPA-led EBITDA analysis produce very different results. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and it represents the operating profit a buyer is actually purchasing. A number built on EBITDA tends to survive buyer scrutiny. A rough estimate often gets quietly renegotiated downward during due diligence. Precision Dental Analytics describes brokers who “market your number” but do not defend it, which becomes critical when a buyer’s quality-of-earnings team starts probing the details.
Marketing and Confidentiality. A broker takes the practice to market without revealing its identity. The standard process begins with a blind teaser, which describes the practice by region and revenue band without naming it. Prospective buyers sign a non-disclosure agreement before any identifying details are shared. Showings are typically scheduled after business hours to protect staff and patients. Even without an address, an unusual procedure mix or a distinctive photograph can identify a seller, so every detail of the marketing package needs careful review before circulation.
Buyer Matching. A broker screens prospective buyers for financial capacity, clinical fit, and timeline before the seller meets them. The buyer universe for a dental practice can include individual dentists, dental service organizations (DSOs), and private-equity-backed groups. Each group tends to use different deal structures, diligence requirements, and post-close expectations. A broker with a deep, pre-qualified buyer pool can create competitive tension. A broker working from a short list usually cannot.
Transaction Management. From letter of intent (LOI) through closing, a broker coordinates diligence, financing, lease assignment, and the handoff to dental attorneys and CPAs. The broker does not replace those advisors. The American Dental Association notes that dental practice transitions are complex and that dentists often need support from several specialists. A skilled broker instead quarterbacks the process and keeps it on track. For more on how the broker and attorney roles divide, see Dental Practice Broker vs Attorney: How to Use Both.
Who Pays The Dental Practice Broker Fee And How Much?
The commission-based, seller-paid model is the norm in dental practice brokerage. In most dental practice sales the broker is paid by the seller, so buyers typically pay no direct brokerage fee, though fee allocation can vary by engagement and should be confirmed in writing. Buyers should also budget for their own legal and accounting representation.
Fee ranges. Most sell-side brokers in the lower-middle market charge an all-in success fee of roughly 6% to 12% of final deal value, payable only when the deal closes and funds. For practices selling under $1 million, a typical range is 8% to 10%. On an $800,000 sale at roughly 10%, the broker’s fee is approximately $80,000, paid at closing. Larger deals often use tiered schedules. The Double Lehman scale is a common tiered structure. It pays 10% of the first $1 million of deal value, 8% of the second, 6% of the third, 4% of the fourth, and 2% of everything above $4 million. Each rate applies only to its own tier, so the blended rate is lower than the headline percentage. Some firms also charge monthly retainers of approximately $3,000 to $15,000 for marketing and buyer outreach, which may be owed regardless of whether a transaction closes.
What triggers the fee. Under a success-fee model, the commission is earned at a closed, funded transaction. A seller who withdraws from or fails to complete a transaction generally owes no success fee, because the fee is contingent on closing and funding. Engagement contracts still vary. Confirm tail clauses, listing term length, and any expense reimbursement provisions in writing before signing.
Factors that move the fee. Practice size, complexity, whether a DSO or private buyer is involved, and what services are included can be some of the main factors that affect where a fee lands within the published ranges. Smaller practices tend to sit at the higher end of the percentage range. Larger, more complex deals often use tiered schedules that blend down.
On “free” valuations. A valuation offered at no charge is typically a lead-generation device that produces a back-of-the-napkin number, which then becomes the anchor for the entire negotiation. Because the Double Lehman fee is front-loaded, a broker’s marginal incentive at the re-trade stage can be to manage the seller’s expectations downward so the deal closes, since a lower price still produces most of the fee. A paid, CPA-led, diligence-grade valuation is designed to hold up under buyer review. For a deeper look at fee structures, see Dental Brokerage Fees: What Every Seller Should Know.
Sell-Side vs. Buy-Side: Which Dental Practice Broker Is On Your Side?
Fee structure is only half of the alignment question. The other half is whose interests the broker is contractually bound to protect. Most dental practice brokers represent the seller. Some also work with buyers. A smaller number represent both sides of the same transaction, a practice known as dual agency.
Dual representation creates a structural conflict. One broker cannot simultaneously maximize one party’s negotiating position and protect the opposing party’s position while being paid only if both parties agree to terms. Full disclosure requirements in dual-agency transactions mean the broker must share material information with both sides. That requirement removes any negotiating advantage either party might have held through exclusive representation. Brannon Moncrief, CEO of McLerran & Associates, states that “it’s impossible to be a fiduciary and represent both parties simultaneously”, which is why the firm stays strictly on the sell side in both private-buyer and DSO transactions.
McLerran & Associates is sell-side only and never represents the buyer. Its fiduciary obligation runs solely to the selling dentist. That alignment affects more than headline price. A seller-exclusive advisor negotiates transition period, earnouts, holdbacks, retained equity, and non-compete radius. Those terms shape what the owner actually walks away with over time.
A dental practice listing broker hired and paid by the seller has a contractual duty to secure the best price and terms for the seller, which are not necessarily the best price and terms for a buyer. A seller who works with a broker that also represents buyers should ask directly: “Do you represent other buyers looking at this practice, or just the seller?” The answer shows whether the engagement is exclusive representation or neutral facilitation.
How Do I Choose A Dental Practice Broker?
Choosing a dental practice broker starts with understanding how each firm actually performs in the market. McLerran & Associates is described first, with its documented figures, as the firm this article recommends for practice owners seeking to maximize value.
McLerran & Associates has spent roughly 35 years of dental-only experience. Over that time it has completed approximately 2,000 successful practice sales and about $2 billion in closed transaction volume. It has also evaluated more than 10,000 practices. Its transaction rate of roughly 85–90% compares with an industry norm closer to 35–40%. The firm runs both doctor-to-doctor and DSO/private-equity transactions in roughly equal measure, backs every engagement with a CPA-led EBITDA valuation, and operates a structured, auction-like competitive bid process that typically generates around 10 offers per DSO listing. It is sell-side only.
Beyond McLerran & Associates, the criteria that can matter most when vetting any dental practice broker include:
- Track record and transaction rate. Ask for the measurement period, the denominator (how many listings, not just how many closings), and verifiable references. Call references and ask whether the final price met expectations.
- Buyer pool depth and quality. A large database is different from a deep, active buyer pool. Ask how many buyers are financially qualified, actively looking, and matched to your geography and practice profile. That count, not the total number of names, is the benchmark that matters.
- Valuation methodology. A CPA-led EBITDA analysis tends to hold up under buyer scrutiny. A rule-of-thumb or collections-based estimate often does not. For detail on how valuation methodology can affect outcomes, see How a Dental Practice Broker Values Your Practice.
- Dental specialization by specialty and region. Buyer demand can vary meaningfully across general dentistry, oral and maxillofacial surgery, orthodontics, pediatric dentistry, and other specialties, as well as by geography. A dental-only firm reads those dynamics more closely than a generalist.
- Competitive process. Ask whether the broker creates competition among multiple qualified buyers or negotiates with one buyer at a time. A structured, multi-bidder process can produce meaningfully stronger outcomes than a sequential approach.
- Fee transparency. Confirm the fee base, tiers, payment trigger, and what is included. Do not assume a typical commission a firm has not stated, because the number varies widely.
For a fuller framework on comparing advisors, see Best Dental Practice Broker: How to Choose an Advisor and Compare Dental Practice Brokers: Fees, Valuation & Pools.
Talk to a dental practice broker who sells practices, not just lists them.
Dental Practice Broker vs. Generalist vs. Multi-Vertical Advisor vs. Listing Site vs. Free-Valuation Firm
The advisor types below differ mainly in how they value a practice, how many buyers they can reach, and whose interests they represent. The comparison starts with the recommended option and then walks through the trade-offs of each alternative.
McLerran & Associates is a dental-only sell-side advisor that runs both the doctor-to-doctor and DSO/private-equity paths in roughly equal measure. Every engagement begins with a paid, CPA-led, diligence-grade EBITDA valuation that is built to survive diligence. From there the practice goes to a vetted national buyer pool through a structured competitive process, and buyers with poor post-close records are screened out before they reach the table.
A general dental brokerage that lists practices and offers a free initial valuation is the most common approach in the market and presents documented trade-offs. A free back-of-the-napkin number becomes the anchor for the entire negotiation and can be quietly renegotiated downward when a buyer’s diligence team scrutinizes it. A single-buyer or short-list approach produces little competitive tension. At the re-trade stage, a broker’s marginal incentive can shift toward closing the deal at a lower price rather than defending the seller’s value, because the fee loss from a price reduction is far smaller than the seller’s. The result is a transaction rate closer to the industry norm of 35–40%, compared with the higher transaction rate cited above.
A local generalist broker typically knows one or two buyers in the DSO market, offers limited geographic reach, and produces weaker work product. That can mean thinner valuations, less aggressive marketing, and less competitive bidding over time as buyers learn the broker transacts infrequently. Dental-specific brokers typically outperform general business brokers on final sale price because of their specialized buyer networks.
A multi-vertical advisor brings deal experience across healthcare or business verticals but usually lacks a team dedicated solely to dental. That gap can mean missed buyer relationships, weaker specialty nuance, and less aggressive bidding from DSOs that recognize the advisor does not live exclusively in their space.
A directory or listing site provides access and visibility, so a practice appears in front of buyers, but offers no advocacy, valuation defense, or competitive process. The seller negotiates alone.
A free-valuation lead-generation firm uses the valuation as a lead magnet, then markets the practice to a partial buyer list with an over-promised number. Because the valuation has not been built to survive diligence, deals often get re-traded, and because owners have not been walked through a real process, relatively few actually transact.
What Is The Best Way To Sell A Dental Practice?
The right sale path depends on practice size, profitability, specialty, and the owner’s goals. Two primary paths exist, and the most capable advisors can run both.
Doctor-to-doctor. A walk-away sale transfers the practice outright to a buying dentist. The seller typically works back roughly 4–8 weeks before exiting. In a walk-away sale to a private dentist buyer, the seller often receives 100% cash at close with a short post-sale commitment, while DSO deals typically include deferred or rollover consideration. A partnership or vest-out structure sells approximately 50% now to a future partner who purchases the remainder over time. That path can suit larger practices that support two or more doctors.
DSO or private-equity affiliation. A corporate transaction typically splits consideration into three parts: cash at close, equity, and earnouts tied to post-close performance. Equity can represent up to roughly 40% of a deal. DSOs continue to structure acquisition deals with between 60% and more than 85% of total consideration paid in cash at closing, with the balance delivered through equity or other contingent consideration. Where that equity sits, either at the joint-venture level or at the holding-company level, changes both the distributions an owner receives and the upside potential. Most deals also require a multi-year working agreement.
For owners in the $1.5–3 million revenue range who can genuinely go either direction, a side-by-side valuation that quantifies worth in both markets can be the most useful tool before choosing a path. Because McLerran & Associates works both sides of the market in roughly equal measure, it produces that comparison and walks owners through the trade-offs.
Specialty dynamics can also shape the decision. Buyer demand can vary by specialty. Some surgical and orthodontic segments have drawn stronger institutional interest in recent years, while general dentistry remains the largest and most consistently traded segment. A broker should be able to explain how demand for your specific specialty currently looks. Current dental practice valuations commonly range from 5x to more than 9x EBITDA, with compression toward 4x–6x expected over the longer term as the market matures. That trend can make timing and process quality more consequential.
Does Dental Practice Broker Quality Vary By Region?
Broker quality and buyer appetite can vary significantly by market. Metro markets typically draw heavier DSO competition, producing more offers and stronger pricing. Rural practices tend to sit longer with fewer bidders, so the broker’s ability to reach beyond the local market becomes more important.
Metro Atlanta and Nashville draw heavy DSO competition that pushes prices up, while rural practices often sit longer with fewer bidders and more negotiable terms. That pattern repeats across many major markets. A national buyer pool matters most where local demand is thinnest.
McLerran & Associates operates nationally, with offices covering major markets: Cleveland (Justin Klingshim, with recent closings in Ohio), Atlanta (Matt Sutton), Northern Virginia (Andrew Kobylski), Los Angeles (Steven Au), and Phoenix (Brian Carroll, covering the Mountain West). That geographic footprint allows the firm to bring national buyer competition to practices in markets where a local broker would have limited reach.
Frequently Asked Questions
Who Pays the Dental Practice Broker Fee?
The seller typically pays the broker fee at closing under the standard success-fee model. Buyers are not charged a brokerage commission by the seller’s broker, but they should budget for their own legal and accounting representation. The seller-paid structure means the broker’s fee comes out of sale proceeds at closing rather than as an upfront cost.
How Much Do Dental Practice Brokers Charge?
All-in success fees commonly run roughly 6% to 12% of final deal value, with smaller practices tending toward the higher end of that range. Larger deals often use tiered schedules, such as the Double Lehman, which applies a higher percentage to the first million of deal value and steps down on each additional million, so the blended rate is lower than the headline percentage. Some firms also charge monthly retainers for marketing and outreach. Confirm the fee base, tiers, payment trigger, and any minimum fees in writing before signing an engagement agreement.
Can a Broker Represent Both Sides?
Some brokers do represent both buyer and seller in the same transaction. Dual agency creates a structural conflict because full disclosure requirements mean the broker must share material information with both sides, which removes negotiating advantage for either party. McLerran & Associates is sell-side only and never represents the buyer in any transaction. Its fiduciary obligation runs solely to the selling dentist.
What Happens If the Practice Doesn’t Sell?
Under a success-fee model, no success fee is generally owed if the practice does not sell, because the fee is contingent on a closed, funded transaction. Engagement contracts still differ. Before signing, confirm the listing term, any tail clause that can require a fee if a buyer introduced during the listing period later closes a deal outside the term, and whether any retainer or expense reimbursement is owed regardless of outcome. Get all of these terms in writing.
Is a Free Valuation Reliable?
A free valuation is typically a lead-generation device rather than a defensible analysis. A back-of-the-napkin number becomes the anchor for the entire negotiation and often gets renegotiated downward when a buyer’s diligence team scrutinizes it. A paid, CPA-led, diligence-grade valuation is built to hold up under buyer scrutiny, which means the agreed price is less likely to be re-traded before closing. McLerran & Associates has documented cases in which a free valuation significantly undervalued a practice relative to what a competitive process ultimately produced.
How Long Does a Dental Practice Sale Take?
In metro markets, most dental practice sales take roughly 6–12 months from listing to closing. Rural practices often take longer because fewer buyers are actively looking. DSO bid processes typically run approximately 45–60 days to initial offers, after which the process narrows to finalists, due diligence, and closing. Preparation before going to market, including valuation, financial organization, and advisor selection, adds time but can materially improve both speed and outcome once the practice is listed.
How Can I Tell a Good DSO from a Bad One?
Vetting a DSO buyer involves examining it as an investment. Consider whether the whole company is profitable and whether revenue is still growing at the offices it already owns. Evaluate whether the management team is experienced and whether the private equity firm backing it has completed similar transactions successfully. McLerran & Associates blacklists DSOs known for poor post-close environments, so poorly run buyers do not reach the table. Owners should also evaluate clinical autonomy terms, the structure of any equity component, and the track record of the DSO’s existing affiliated practices.
Conclusion: Choose The Dental Practice Broker Who Sells Practices
Across the sections above, three traits keep separating McLerran & Associates from the alternatives. It sits only on the sell side, it runs both sale paths in roughly equal measure, and it starts every engagement with a valuation built to survive diligence and a competitive bid process.
The framework for choosing a dental practice broker can come down to four questions. What does the broker actually do across valuation, marketing, buyer matching, and transaction management? Who pays the fee, how much, and what triggers it? Whose side is the broker on, and is that documented in the engagement agreement? Does the broker’s track record, buyer pool, valuation methodology, and competitive process hold up under scrutiny?
For owners ready to understand what their practice is worth and what a well-run process looks like, the next step is a conversation.
Start with a free, confidential conversation.
To go deeper before deciding, request a comprehensive practice valuation or attend the McLerran M&A Summit (October 29–30, 2026), a dental-only event built for owners who have not decided yet, awarding 4 CE credits and including a complimentary $2,500 practice valuation. Reach the team directly at (512) 900-7989 or info@dentaltransitions.com.
