In our previous post, we explained how Goodwill value is calculated in a dental practice: it’s the sale price minus the value of the tangible assets. But numbers only tell part of the story.
So, what is Goodwill really?
Goodwill is the heart of a dental practice. It’s the reputation of the dentist and staff, the confidence and comfort patients feel with their care, and the loyalty that keeps them returning year after year.
This is by far the most valuable asset of a dental practice, usually representing 65–70% of the purchase price—sometimes even more.
How to Protect and Transfer Goodwill
Because it’s so valuable, both Buyers and Sellers should prioritize Goodwill during a transition. Here are proven ways to preserve and maximize it:
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Keep the process smooth. A “pitbull” attorney who drags out negotiations can damage the relationship between Buyer and Seller, which ultimately hurts Goodwill.
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Avoid abrupt changes. Cutting staff, raising fees, changing office hours, or criticizing the Seller’s care too quickly can unsettle both patients and staff. Build trust first.
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Make small improvements. Updating paint, flooring, or equipment can energize the staff and reassure patients, without disrupting continuity.
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Offer complimentary care. Providing ongoing dental care to the Seller and spouse (excluding lab costs) gives them confidence in recommending you. Patients will notice when the Seller says, “My spouse and I are still patients here.”
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Leverage the Seller’s endorsement. A strong, heartfelt letter from the Seller at closing reassures patients and encourages them to stay with the practice.
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Train your front desk team. Receptionists should have a simple, positive script ready: “Oh, Mrs. Smith, I think you’ll really like our new dentist—we can’t wait for you to meet them.”
Why This Matters
Most Sellers are deeply proud of their practice—it’s their life’s work. Being sensitive to that pride, both during negotiations and after the sale, ensures that decades of trust and loyalty transfer to you as the Buyer.
Handled well, the Seller’s Goodwill becomes the foundation for building your own reputation and growing the long-term value of your investment.
– Bill Otten & Kim Rey
