Dental Practice Exchange in Germany

MARKET SITUATION

Practice succession in dentistry: a market in transition

Handing over and taking on dental practices has become one of the defining topics for the profession in recent years. An entire generation of practising dentists will reach retirement age in the foreseeable future, while at the same time more and more young colleagues are carefully weighing up the step into their own practice, or initially prefer employment instead. This demographic shift creates a situation in which, in many places, more practices are up for sale than there are classic individual successors to take them on. Anyone thinking today about handing over their own practice is therefore operating in a market that has changed structurally.

This page is deliberately not aimed at patients, but at colleagues, as well as investors and sponsoring organisations, looking into practice handover, practice acquisition, or cooperation. We see it as a factual point of orientation – a collegial overview of the routes currently open, the broad course of a handover, and the questions that should be considered early on. It does not replace individual legal, tax, or business advice, but aims to make it easier to get started with that advice.

Why this topic is gaining importance

Several developments are coming together. The age profile of practising dentists is high; in many regions, the average age of practice owners is well above that of previous decades. At the same time, the profession has changed: younger colleagues often place value on predictable working hours, team structures, and relief from entrepreneurial risk. The trend towards employment, group practices, and medical care centres is a consequence of this. For owners looking to hand over their practice, this means: the one ideal successor who continues running the practice unchanged has become rarer – but the routes to handing it over have multiplied instead.

There is also a regional divide. In urban centres, well-positioned practices usually attract several interested parties, whereas in rural areas and medium-sized towns, finding a successor can take longer. This is exactly where an idea running through this page comes in: handing over a practice does not have to mean a complete sale to a single successor. Partnerships, phased transitions, cooperations and MVZ structures open up possibilities that would have been unusual just a few years ago.

Anyone planning to hand over their practice does well to start getting their bearings early – ideally several years before the planned exit. A practice that is prepared for a handover in good time, both financially, organisationally and in terms of staffing, can in many cases be handed over in a more orderly, calmer way than one where a successor has to be found under time pressure. The following sections describe the main routes available, the broad process, and the role that the Zahnkompetenzzentrum can play in the region.

WAYS TO HAND OVER

Sale, partnership, employment: an overview of ways to hand over a practice

There is no single right way to hand over a dental practice. Which form suits you depends on your personal goals: do you want to leave completely on a fixed date, or would you prefer a gradual transition over several years? Should your own name and practice concept continue, or does an economically and organisationally clean solution take priority? Below, we set out the most common routes soberly, side by side, without recommending any one of them as a general rule – the choice is always an individual decision that should be accompanied by professional advice.

The complete sale of the practice to a single successor

The classic route remains selling the practice to a colleague who continues running it as a self-employed owner. This typically involves transferring the tangible value of the practice – that is, fittings, equipment, and stock – as well as its intangible value, which reflects the established patient base, reputation, and organisation. This route offers a clean break: the outgoing owner leaves on the agreed date. The precondition is finding a suitable individual successor who is willing to take on the entrepreneurial risk of self-employment – which, as described, is easier or harder to achieve depending on the region.

Partnership and Joint Practice

Instead of an abrupt handover, a successor can first join the practice as a partner. In a group practice (Berufsausübungsgemeinschaft), two or more dentists run the practice together; the outgoing owner gradually reduces their involvement and transfers their share over an agreed period. This gradual transition has the advantage that patient relationships and staff continuity are preserved, and the incoming partner can grow into entrepreneurial responsibility over time. It does, however, require careful contractual arrangements and a high degree of personal fit between those involved.

Employment and MVZ Structures

An increasingly popular route is integration into a larger structure. A practice can be transferred into a medical care centre (MVZ) or a larger group of practices, with the option for the outgoing owner to continue working afterwards as an employed dentist – with reduced entrepreneurial risk and without the administrative burden of ownership. For many colleagues who want to remain clinically active but hand over organisational responsibility, this is an attractive middle path. Structures taking over a practice also value this kind of transition, because professional experience and established patient relationships are preserved.

• Full sale: a clean exit on a fixed date, which requires a suitable individual successor.
• Partnership / group practice (Berufsausübungsgemeinschaft): a gradual transition, continuity for the team and patient base, a high need for coordination.
• Joining an MVZ followed by employment: relief from entrepreneurial risk, while continuing to practise professionally.
• Cooperation and partial handover: Combining individual areas, shared use of rooms or equipment, a gradual move towards a later succession.
• Closing the practice without a successor: in rare cases, the last resort, usually unfavourable financially, as the goodwill value is lost.

Which of these forms makes sense cannot be answered in general terms. Personal life planning, the practice's financial situation, its location, and the availability of interested parties all play into one another. We consider it advisable to think through several approaches rather than committing early to a single model. An open-minded stocktaking provides the basis for finding the solution that suits your own situation.

PRACTICE VALUE

How the value of a dental practice is determined – a rough overview

One of the first questions that arises when handing over a practice is: what is the practice worth? The honest answer is that there is no single, objectively fixed price. The value of a practice is the result of a professional assessment and, ultimately, of negotiation between the party handing over and the party taking over. The following remarks give only a rough overview of common valuation principles and are explicitly no substitute for a professional practice valuation carried out by a specialist adviser, tax adviser or expert.

Material and intangible value

The value of a practice is usually broken down into two components. The tangible value (asset value) covers the physical items: treatment units, technical equipment, furniture, IT, and stock, each assessed for age and wear. The intangible value (goodwill), by contrast, reflects what makes the practice an established business – its patient base, location, reputation, well-rehearsed workflows, and staff team. Experience shows that the intangible value in particular is the harder to assess, and often the larger share; it depends heavily on how transferable the existing patient relationships are to a new owner.

Common Valuation Approaches

Various methods have become established in practice. Simplified revenue- or profit-based approaches are based on the average income or the sustainably achievable profit of past years, from which a value is then derived. There is also the modified capitalised earnings method recommended by the German Federal Dental Association (Bundeszahnärztekammer), which focuses on future achievable earnings and takes a notional owner's salary into account. Which approach is suitable in a particular case depends on the structure of the practice. The methods mentioned provide points of reference, not fixed prices – it is worth bearing this in mind when the market uses rules of thumb or percentages of revenue.

Factors that influence the value

Numerous factors affect the value, and these defy any single, simple formula. Location and catchment area, the condition and modernity of the equipment, the range of services provided, how dependent the practice is on the outgoing owner personally, the rental situation of the premises, and the stability of the team all play a role. A practice whose success is very strongly tied to the person of the previous owner is often harder to hand over at a high goodwill value than one whose processes and patient loyalty depend less on one individual.

• Material value: equipment, furnishings, IT and stock, taking age and condition into account.
• Goodwill value: patient base, location, reputation, an established organisation and team – usually the harder part of the valuation.
• Earnings position: sustainably achievable profit from recent years as the key reference figure.
• Location and competition: catchment area, accessibility and the regional care landscape.
• Dependency on the individual: how closely success is tied to the previous owner.
• Handover terms: lease agreement, staff transfer and any possible transition period.

We explicitly advise against relying on rough rules of thumb or treating a hoped-for price as fixed. A sound valuation prepared by a qualified body creates a solid basis for negotiation and protects both sides – the party handing over the practice and the party taking it on – from later disappointment. Whatever price is ultimately agreed remains the result of an agreement between the parties involved.

ABLAUF

The process of handing over a practice – step by step

Handing over a practice is a process that extends over months, often over years. The following overview describes a typical course, as it presents itself in many cases. It is intended as guidance, not as a rigid prescription: depending on the route chosen – sale, partnership, or joining an MVZ – individual steps may be dropped, added, or make more sense in a different order. Above all, it is important to start early and to bring in professional support in good time.

1. Taking personal stock: clarifying your own goals – your intended exit date, the form the handover should take, and whether you want the concept continued or a clean break.
2. Preparing the practice: getting the business documentation in order in good time, updating contracts, and, where appropriate, either making investments or deliberately holding back on them, in line with the handover strategy.
3. Practice valuation: commissioning an expert valuation to arrive at a robust idea of the realistic value range.
4. Bringing in professional advice: consulting tax advisors, legal counsel, and, where appropriate, support specialising in practice handovers, on tax, authorisation and contractual questions.
5. Finding interested parties: discreet outreach to potential successors, partners or cooperation partners – through your own network, professional contacts, or specialist brokers.
6. Initial conversations and exploration: confidential get-to-know-you meetings, comparing expectations on both sides, and checking personal as well as professional fit.
7. Review and access: an orderly disclosure of the relevant figures and documents to serious prospective buyers, usually under a confidentiality agreement.
8. Negotiation and drafting the contract: agreement on the price, handover date, staff transfer, tenancy agreement, and any transitional arrangements, set out in a professionally reviewed contract.
9. Authorisation steps: observing the requirements of the statutory dental associations, for example during a replacement procedure or when joining a group practice.
10. Handover and transition phase: the actual handover of the practice, usually accompanied by an induction or transition period in which the outgoing practitioner introduces and familiarises the incoming practitioner.
11. Informing the team and patients: timely, trust-building communication towards staff and – within the legally permitted framework – towards patients.

Why discretion matters at every stage

A particular feature of handing over a practice is the great importance of confidentiality. If it becomes known too early that a practice is up for handover, this can unsettle the team and patients alike. For this reason, most of the process – from initial soundings through to a contract being ready to sign – takes place in confidence. Serious interested parties usually only receive sensitive information after signing a confidentiality agreement. This discretion protects ongoing operations and, with it, the value of the practice.

The lead time required is often underestimated. Experience shows that it is not unusual for several years to pass between the first consideration and a completed handover, particularly where a gradual transition is desired, or where the search for a successor takes place in a region with few interested candidates. Starting early creates room for manoeuvre and avoids having to make concessions under time pressure.

WHAT TO LOOK FOR

What sellers and buyers should pay attention to

Whether handing over a practice or taking one on – in both roles, care and realistic expectations determine whether a transition succeeds. The following points summarise aspects that repeatedly prove important in practice. They are general in nature and do not replace individual review of the specific case.

From the perspective of the person handing over

Those handing over a practice generally want to achieve two things: fair value for their life's work, and the reassurance of knowing that the practice, team and patient base are being passed into responsible hands. Both are more likely to succeed if the practice is well prepared and expectations regarding price and timeframe remain realistic.

• Starting early: several years of lead time create room to manoeuvre and reduce the pressure to conclude things in a rush.
• Getting documents in order: informative financial reports and a clear contractual position on rent and staff make every negotiation easier.
• Reducing dependence on any one individual: transferable processes and a well-coordinated team often increase the practice's appeal to a successor.
• Maintaining discretion: handling the process confidentially, so as not to unsettle the team or the patient base.
• A realistic idea of value: basing things on an expert valuation rather than simply a hoped-for price.
• Planning for a transition phase: a willingness to support the successor for a while often increases acceptance among both patients and the team.

From the perspective of the person taking over

Whoever takes over will carry the entrepreneurial responsibility going forward, and should therefore examine the practice thoroughly before committing. A careful review protects against surprises and creates a solid basis for the start.

• Reviewing the figures: analyse profitability, cost structure and how things have developed in recent years carefully, ideally with professional support.
• Understanding the patient base: assess the composition of the patient base and how attached it is to the current owner.
• Assessing the substance: realistically evaluate the condition and modernity of equipment and furnishings, as well as any upcoming investment needs.
• Location and tenancy agreement: examine the term, conditions and location of the practice premises carefully, as they create a long-term commitment.
• Team and transition: viewing the existing team, and the option of a supported transition period, as an important factor for success.
• Financing and authorisation: setting financing on a solid footing and clarifying the authorisation requirements early on.

In both roles, the same holds true: handing over a practice is not only a financial matter, but also a personal one. How well the outgoing and incoming parties fit together – a shared understanding of patient care, team culture and ways of working – contributes significantly to whether a handover is felt to have gone well. We recommend giving this softer factor at least as much attention as the figures.

REGIONAL PARTNER

The Zahnkompetenzzentrum as your point of contact in the region

The Zahnkompetenzzentrum Dr. med. dent. M.Sc. Sandro Strößner in Weißenfels is an established practice in the Burgenlandkreis and southern Saxony-Anhalt. Because of these regional roots, we see ourselves as a possible point of contact for colleagues considering a practice handover, a cooperation, or an orderly transition into a larger structure. This page is therefore not an anonymous marketplace, but a collegial invitation to talk, in a market where personal trust and regional closeness count.

Possible Forms of Collaboration

Depending on the situation, different forms of collaboration may be considered. For a colleague handing over their practice, this can mean transferring it, as part of an orderly transition, to or in connection with the Zahnkompetenzzentrum – whether as a full takeover, a gradual transition, or with the option of continuing to work afterwards without entrepreneurial risk. Collaborations are equally conceivable in which individual areas are pooled, rooms or equipment are shared, or specialist services are made mutually accessible. Which form makes sense is always something we clarify in an open conversation, with no predetermined outcome.

What we can offer is a confidential, collegial initial conversation in which we assess the particular situation and point out possible routes forward. We see regional care as a shared responsibility: if a practice in the region is at risk of closing for lack of a successor, that is a loss not only for the owner, but also for patients in the local area. In such cases, connecting with an existing, capable structure can help preserve care and carry a life's work forward with dignity.

What we are not

For the sake of clarity, let us be plain about what this page does not do. We are neither a brokerage nor a valuation body, and we do not provide legal or tax advice. A sound practice valuation, contract drafting and tax optimisation belong in the hands of appropriately specialised professionals, whose involvement we explicitly recommend. Our role is that of a potential partner on equal footing – as a practice taking over or cooperating, and as a contact who knows the regional market.

Whether a collaboration ultimately comes about remains completely open and carries no obligation. An initial conversation initially only serves to find out whether both sides' ideas are compatible. This lack of any obligation matters to us, because handing over a practice is one of the most significant professional decisions there is, and should be allowed to mature without pressure.

CONTACT & DISCRETION

Confidential contact and the topic of advisory costs

Anyone thinking about handing over their practice or entering a cooperation is often still at the very start of their deliberations and would like, initially, to talk without obligation and in confidence. This page is intended for exactly that. An initial contact commits you to nothing and is, of course, treated discreetly. Precisely because an upcoming handover is a sensitive matter within an ongoing practice, we place great importance on such conversations taking place in a protected setting and without haste.

How to reach us

You can reach the Zahnkompetenzzentrum Dr. med. dent. M.Sc. Sandro Strößner at Leopold-Kell-Straße 25, 06667 Weißenfels, by telephone on 03443 339 65 54. For a confidential, collegial conversation about a practice handover, succession or cooperation, please let us know briefly when booking an appointment, so that we can allow enough time and hold the conversation in the right setting. Sensitive documents are only exchanged, if at all, at a later stage and in strict confidence.

Advisory costs and the topic of brokers

Handing over a practice generally involves costs for professional support, which should be planned for early on. Depending on the route chosen, these include fees for tax advice, legal advice and, where relevant, a practice valuation carried out by a qualified expert. These costs depend on the work involved and the provider, and cannot be stated as a flat figure; it is worth obtaining transparent quotes in advance. We regard this as money well invested, because careful support helps avoid later mistakes that are often more costly.

On the subject of brokers, it is worth noting soberly: specialist practice brokers can structure the process, approach interested parties, and support negotiations – this comes at a cost, which should be agreed clearly in advance. Whether such a broker makes sense depends on the individual case. In a region with a manageable market, direct, confidential contact between colleagues can be a viable route. It is exactly this direct route that the Zahnkompetenzzentrum, as a regional point of contact, wants to keep open – without thereby replacing or making unnecessary professional advice.