When a dentist suddenly passes away, their spouse or family faces both personal and professional challenges. We deal with this situation multiple times per year, and while we have tried to get in front of dentists to have a more detailed plan of action in this circumstance, it is human nature to have the mindset that “it won’t happen to me.” Therefore, no one follows through. My suggestion is for you to select a dental practice broker in your area who has an outstanding reputation, multiple references, and testimonials. Save their contact information and this article for use in case of necessity. 

Your family will need to have a structured approach to handling the situation; balancing the need for clear, practical steps with sensitivity to the emotional difficulty of the circumstances. This article will serve as a vital roadmap to alleviate challenges and optimize the sale outcome.

Time is of the Essence

Seek emotional support and give yourself and the team members of the practice a few days to grieve the loss. During this difficult time, we must balance emotional well-being while also making business decisions to maximize the sale of the business. The more time that goes by, the less the practice is worth. If the practice is not sold within 60 to 90 days, the value of the business becomes nominal. 

The first step is to contact a broker who specializes in dental practice transitions. They can guide you through the immediate necessities, including:

• Putting together a plan of action
• Valuing the business 
• Connecting you with trusted advisors 
• Helping you find a temp dentist to work the practice 

Keep the Practice Open

After the dentist’s passing, you will want to notify the team members immediately. Clarify that they are still employed with the practice. It is important they know that your plan is to keep the practice running and that you will find another doctor to take over the practice. If you cut hours or pay, they will more than likely be inclined to leave the practice, which hurts the value of the business. If possible, retain all the team members to keep familiarity within the practice. The team members are the only remaining known to the patients. 

A dental practice broker should be able to find a dentist to help work the practice for 30 to 60 days while they locate a buyer. In an ideal scenario, the practice will at least break even after paying the overhead, which includes compensation to the temp dentist. If not, this further stresses the need to complete the sale sooner rather than later, as the family will be spending money to keep the practice going until the sale is completed. 

A major pitfall we oftentimes see is perspective buyers, concerned about losing practice patients to a local dentist, attempting to lower the purchase price. Retaining your patients is important to valuing the business properly.

After notifying the employees, you must notify the patients. We recommend keeping news of the doctor’s passing quiet as long as possible. If word spreads to the community, the likelihood of the patient finding another dentist before the sale of the practice is high. We recommend telling patients that there is a family emergency, and that “Dr. Doe” will be caring for our patients at this time. After closing on the sale, we recommend sending out a letter to the patients informing them of the doctor’s passing, the practice sale, and the arrival of a new dentist. If a patient gets wind of the situation before you’re ready, the team should be prepared to confirm the news and reassure the patient that you are looking for a dentist to continue the quality of care in the practice. 

Finding a Motivated Buyer

Your highest offer may not be your best offer as finding a buyer who has the ability to close quickly and is financially qualified is of greater value. Utilize your broker’s market knowledge and expertise to help you evaluate any interested parties. If a buyer takes 30 days to conduct their due diligence and then does not close, that could cost the family one month of overhead and, more than likely, a lesser purchase price. As more time passes, the risk of word getting out to the community increases, and, in turn, so does the likelihood of more patients requesting a referral to another dentist. The longer the practice goes unsold, the value continues to drop, and the less money your family will receive from the sale.

Each situation is unique. The advised steps may need to be adjusted according to your circumstances. It’s crucial to consult with professionals who can provide personalized advice and support during this challenging time. In the event that you are in a rural area and are not able to locate a buyer, and closing the practice is the only option, consult with professionals to do so in a manner that is respectful to patients and staff, and complies with legal and professional standards.