DDSWhat does a dental practice broker charge?
Most brokers charge a success fee paid at closing. McLerran & Associates says most commissions in 2026 fall between 6% and 12% of the final sale price, are paid only if the deal closes, and can step down for larger practices through tiered schedules. That is one firm’s published range, not a national survey.
Read the engagement letter for the commission basis (practice only, or also real estate and equipment), any retainer or valuation fee, the tail period after the agreement ends, and carve-outs for buyers the seller found. How to choose a dental practice broker covers the selection questions.
What other costs should a seller budget for?
Beyond commission, sellers usually pay a dental-experienced attorney, a CPA for tax planning and the closing, sometimes an independent valuation, and patient notification and records costs. DSO deals add employment, equity and non-compete documents, so legal spend can rise even when the broker percentage is similar to a private sale.
Buyers increasingly ask for a quality of earnings review; sellers who commission their own pre-sale review pay for it but may avoid price cuts later. See the glossary entry for non-compete and the handling of patient records in a sale.
How do taxes change the cost of selling?
For many sellers, tax on the gain is the largest economic cost, larger than any fee. In an asset sale the price is allocated across seven IRS asset classes on Form 8594, and that allocation, along with entity type and state rules, decides how much is taxed as capital gain versus ordinary income.
Most of the price in a typical asset sale is goodwill; see what share of a sale is goodwill and the asset purchase entry. A CPA can model net proceeds under a private sale and a DSO structure before the owner signs a letter of intent.
Does a broker’s fee pay for itself?
It can, when the broker runs a competitive process that raises the price or the cash at close by more than the fee. TUSK Practice Sales counted more than 135 DSOs and private-equity groups in the 2026 buyer universe, and reaching several of them is the work a success fee pays for.
Compare cash, not headline value: cash at close in a DSO offer explains how much of the price is paid at closing. Published multiples on practice valuation multiples help test whether a fee is being applied to a realistic value.
What does it cost to sell without a broker?
A seller who skips a broker saves the success fee but still pays legal, accounting and tax costs, and takes on buyer screening, confidentiality and diligence management. Selling to a known associate can work without a full process; a wide DSO process is harder to run alone and carries more risk of price cuts after diligence.
See associate buy-ins and exit options. Preparing early with the 24-month checklist lowers the effective cost of any path, and dental transition signals explain how ownership changes show up in public records.
Frequently asked questions
What commission do dental practice brokers charge in 2026?
McLerran & Associates says most commissions fall between 6% and 12% of the final sale price, with lower rates negotiable for larger practices.
Who pays the broker’s fee?
Usually the seller, as a success fee at closing. Check the engagement letter for retainers, tails and the commission basis.
Are legal fees included in the commission?
No. Budget for a dental-experienced attorney and a CPA separately.
What is the biggest cost of selling a dental practice?
For many sellers, tax on the gain is larger than any fee, so a net-proceeds model with a CPA comes first.
Does DDSIntel charge a fee on a sale?
No. DDSIntel publishes aggregate market information and is not a broker.
Sources
- McLerran & Associates (Dental Transitions). Dental practice broker commission rates explained (August 21, 2026). dentaltransitions.com.
- Internal Revenue Service. Instructions for Form 8594 (Asset Acquisition Statement). irs.gov.
- TUSK Practice Sales, via PR Newswire. TUSK Practice Sales assesses the state of the dental industry in its Q3 2026 dental market report (July 10, 2026). prnewswire.com.
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