DENTALDEX

How Can a DSO Write an LOI That a Dentist Will Accept?

A winning dental-practice LOI combines competitive economics with clarity, credibility and terms that address the seller's personal concerns. The highest enterprise value does not always win.

Make economics easy to understand

Clearly identify enterprise value, cash at closing, rollover equity, earn-out, holdback and doctor compensation. Do not bury economic structure.

Address transition early

State the expected employment term, schedule, compensation framework, benefits and leadership expectations. Uncertainty creates seller anxiety.

Address autonomy

Doctors care about what happens Monday morning after closing. Explain your philosophy regarding treatment decisions, materials, labs, staffing, brand and schedule.

Demonstrate certainty

A seller values a buyer that can actually close. Provide the diligence process, approval requirements, funding credibility, expected timeline and key conditions.

Personalize the offer

If the seller repeatedly emphasizes staff retention, address it. If the seller wants equity upside, explain rollover. If the seller wants retirement within two years, do not submit a five-year employment structure without explanation. The best LOIs reflect the actual seller.

DentalDex sellers state their priorities up front, so your LOI can answer them.

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Market ranges on this page are illustrative planning ranges, not offers. Involve qualified legal and tax advisers on any transaction.