It’s another new year, and a time when you might be considering lifestyle changes or your future retirement. In an ever-changing market, here are five key areas to consider if you are planning to sell your dental practice in 2026.
1. Know the current market
2025 ended with more good news for the dental practice sales market, with the Bank of England base rate dropping to 3.75% on 18th December, down 1% from the beginning of the year. Heading into 2026, this means that borrowing for buyers is now at its most affordable since February 2023 (where the base rate was 4%).
Statistics show that the majority of buyers in 2025 were individuals. Therefore with decreasing loan costs, we are expecting to see more new buyers enter the market in 2026.
Multiples for dental practice valuations had softened to account for high interest rates and, although still not back to their peak, in general we are now seeing multiples start to increase again slightly.
It is important to engage early with your dental sales team so that they can keep you abreast of the current market factors impacting your practice specifically.
2. Know your practice value
One of the most common mistakes sellers make is relying on hearsay or outdated benchmarks when estimating what their practice is worth. Instructing an experienced practice valuer and sales agent ahead of your sale could result in gaining additional tens of thousands of pounds to add to your retirement fund.
A professional valuation will not only provide an accurate guide price but also explain why your practice is worth what it is. This allows you to identify areas for improvement in advance of sale, such as increasing profitability, addressing reliance on the principal, or tidying up associate contracts. Even modest changes made months ahead of marketing can have a meaningful impact on value and make the practice more attractive to purchasers.
3. Finding the right buyer and deal structure
Finding the right buyer is more than just price. Deal structure, timescales, post-sale commitments and cultural fit can all be equally important. Not every practice will suit every buyer and, likewise, not every buyer will want every practice. A practice valuation will help determine which type of buyer your practice is best suited to.
The majority of buyers in 2025 were individuals. Thus, most do not require tie in periods for sellers, and you may be able to sell and retire within the year (providing all parties move quickly). Recent years have seen the lowest levels of body corporate purchases in the past decade, with corporate buyers purchasing less than 1 in 10 practices sold through PFM in 2025.
Ensuring that the practice is marketed as widely as possible will help to give you options of buyers. Established sales agents like PFM (established in 1990), have several thousand registered buyers, categorised by location, allowing us to contact multiple prospective parties as soon as you are ready to go to market.
4. Tax and legal structure
Your valuer should be able to explain different sales options to you – e.g. asset vs share, freehold sale vs leasing. However, you will likely want to take guidance from a dental specialist solicitor regarding your obligations when selling shares or assets of a limited company (if applicable), plus advice from your accountant regarding your personal tax implications and the best way for you to sell. Having these conversations prior to sale allows your sales agent to market the practice correctly and will also save time during the legal work.
It is vital to work with solicitors who understand dental transactions and the due diligence process. They will know what information is genuinely required, what is standard, and where unnecessary requests can be challenged.
Sale agreements typically include warranties, and these should be carefully reviewed to ensure they are reasonable and proportionate. If the practice holds an NHS contract, the legal structure of that contract is especially important. In some cases, a short-term partnership may need to be formed to avoid a break in the NHS contract at the point of transfer. This involves drafting a partnership agreement with appropriate protections in place, as well as managing CQC applications, which can vary depending on how the practice is sold.
If you don’t have dental specialist advisers already in place, speak to a sales agent like PFM to be put in touch with the right people.
5. Prepare your numbers and records
Well-prepared records can significantly reduce stress and delays during a sale. Buyers, lenders and solicitors will expect clear, accurate, and up-to-date information, including accounts, NHS and plan schedules, associate agreements, staff contracts, and compliance documentation.
Disorganised or incomplete records can undermine buyer confidence and weaken your negotiating position. Preparing your documents early allows you to address any issues proactively and present the practice in the best possible light. This preparation often results in a smoother transaction and can even help protect the agreed price through to completion.
Final thoughts
Selling your dental practice may feel a long way off, but the most successful sales are those planned in advance. By understanding the market, knowing your value, choosing the right buyer, structuring the deal correctly, and surrounding yourself with experienced advisers, you put yourself in the strongest possible position to achieve a successful and rewarding outcome.
About the Author
Samantha Hodgson is a finance broker and practice valuer at PFM Dental.
For more information, visit https://pfmdental.co.uk/practice-sales/selling-a-practice/
