Transition period

The transition period is the stretch of time after closing when the selling dentist stays involved with the practice (sometimes working reduced clinical days, sometimes purely in an introduction and goodwill role) to help hand off patient relationships to the new owner. How long this lasts and what the seller actually does during it are both negotiated as part of the deal, and getting the details vague here is one of the more common regrets on both sides of a transaction.

A well-structured transition period matters most for patient retention. Patients who have seen the same dentist for years are far more likely to stay through a transition when that dentist is visibly present, endorsing the new owner personally, than when the seller disappears the day the deal closes and a stranger simply takes over the schedule. The seller's continued involvement, even briefly, is often worth more to the buyer's retention than any amount of marketing could replace.

Define the transition period's length, the seller's clinical role and pay during it, and the exit date explicitly in the purchase agreement, rather than leaving it as an informal understanding: informal arrangements are exactly where transition-period disputes tend to start.