Dental Practice Brokers Charge 8-10% Commission. Negotiate It.

Dental Practice Brokers Charge 8-10% Commission. Negotiate It.

Dental Practice Brokers Charge 8-10% Commission. Negotiate It.

When you sell your practice, the broker takes 8-10% of sale price. A $1M practice sale means $80K-$100K to the broker for marketing and deal facilitation.

That's not unreasonable for a complex transaction. Until you realize: most brokers do 2-3 deals per year. If each deal is $800K average sale, that's $19K-$24K income per deal. Scale that and brokers make serious money.

You can negotiate. Brokers often accept 6-7% on practices over $750K sale price. Some will drop to 5% if you're bringing a buyer (no marketing cost).

Also negotiate: earnout terms, escrow holdback, non-compete agreements. Brokers have templates. Templates favor them.

Most sellers don't negotiate because they don't know it's negotiable. They see 8-10% as gospel.

It's not. It's an opening offer.

If you're planning a sale, interview 3 brokers and compare terms. One of them will move on price and services.

Sources:

- Should You Use a Dental Broker When Buying a Practice?: https://www.studentloanplanner.com/dental-broker/

- Fees Associated with the Sale of My Dental Practice: https://ctc-associates.com/blog/fees-associated-sale-my-dental-practice

- How Much Does It Cost To Sell A Dental Practice? - Xite Realty: https://www.xiteco.com/how-much-does-it-cost-to-sell-a-dental-practice/