How to Sell or Downsize Your Dental Practice — Without Triggering a Cash Flow Crisis

You’ve built something valuable. But holding onto every location or pushing through the pressure might be creating more cash flow strain than strategic gain.

From working with over 80 UK dental practices since 2019, here’s what I’ve learned:

Selling a practice isn’t an exit — it’s a liquidity event. And if mismanaged, it can choke your cash, not free it.

Why You Can Trust This

As a Chartered Accountant and Dental CFO, I’ve advised on both the buy and sell side of UK dental transactions — from £450K NHS disposals to multi-site private exits above £2.5M. I’ve seen what frees up cash — and what leaves principals in worse shape after the sale.

TL;DR — Before You Sell:

• Selling a site can solve cash problems — or create them.
• Some fixed costs don’t vanish with the sale.
• The way you structure the deal determines your liquidity post-exit.
• Always model your ECFTI™, PPBT™, and tax exposure before listing.

Should I Sell a Site to Improve Cash Flow?

On the surface, offloading a site looks like a fast path to liquidity. Less payroll. Less pressure. More breathing room.

But I’ve seen too many principals sell under pressure — only to end up with lower cash flow across what’s left.

Here’s how it backfires:

Practitioner Lens: One client sold their £880K mixed site to “simplify” — but failed to account for the £4.2K/month shared marketing cost that remained. Within 3 months, their main site dipped below breakeven.

💬 Truth: Selling without modelling ECFTI™ across remaining sites is like cutting a branch you’re standing on.

What Costs Might Stay With Me Even After I Sell?

Not all costs leave with the practice. Here’s what often lingers:

Cost Retention Grid

Tip: Don’t just list costs on a spreadsheet. Map what stays, what goes, and what resettles across the remaining business.

How Do I Protect Liquidity Through the Transition?

The cash flow danger zone isn’t just before the sale. It’s during the 3–6 month transition where money is delayed, staff are unsettled, and taxes hit unexpectedly.

This reminds me of a principal who sold their second site in March — but didn’t receive 60% of proceeds until September due to milestone clauses. Their main site dipped into overdraft by June.

Here’s what to do:

1. Build a 13-Week Forecast That Spans the Exit
   Include both existing income, sale milestone payments, and residual costs.
2. Model PPBT™ Before & After
   Know what you need to take home — even as your business structure shifts.
3. Run an ECFTI™ Projection on Remaining Sites
   Make sure your kept practice(s) generate positive investable cash after the split.
4. Pre-Plan Your Tax Impact
   Capital Gains, Corporation Tax adjustments, and professional fees can bite hard. Plan your tax pot now.

💬 Rule: Your business should feel more cash secure after a sale — not more brittle.

Before You Finalise a Sale, Understand the Tax Trap Hidden in Established Practices

Selling or downsizing can free cash — but it can also expose a problem many established owners don’t see until it’s too late: even profitable clinics routinely struggle to pay Corporation Tax and Self Assessment because their cash model isn’t aligned to tax timing. And a sale amplifies that risk. Completion funds, earn-outs, and shifting profit structures can trigger unexpected tax liabilities just when your liquidity is at its thinnest.

Before you commit to any exit plan, make sure your tax flow is structurally protected.

Read next: Why You Still Can’t Pay the Tax — Even as an Established, Profitable Dental Practice — so you don’t trade one cash strain for another during or after your sale.

Your Next Steps

Here are 3 ways to protect your cash flow during a sale:

1. DIY Approach

Use Xero/QuickBooks and your PMS to:

• Map a 13-week exit forecast
• Model ECFTI™ of remaining sites
• Plan tax exposure based on deal structure

2. Download the Forecast + Exit Planning Template

Our tool helps you model all cash flow and tax variables in under 30 minutes.

3. Use DentPulse to Simulate Your Exit

DentPulse lets you:

• Track ECFTI™ across all sites
• Model post-sale PPBT™ instantly
• Flag cash timing risks during transition
• Build your tax buffer in real time

No blind spots. No panic. Just clarity.

Final Words: A Sale Should Free You — Not Drain You

Most dentists think selling means cash.

But without proper cash flow planning, you might:

• Earn less from what’s left
• Pay tax too soon
• Or end up chasing liquidity with fewer levers

From my experience guiding dozens of transitions — clarity, not urgency, is what leads to smart exits.

💡 Want to see how DentPulse helps you plan a cash-positive sale?

👉 Book a walkthrough demo here.

No guesswork. No blind spots. Just control.