Arizona combines three things sellers like: a growing patient base, one of the lowest flat income taxes in the country, and buyers who are very active in the Phoenix metro. Here’s what’s specific about selling here, and what isn’t.
The math is the same everywhere
Buyers price EBITDA, not collections, in Arizona like everywhere else. If that sentence isn’t familiar, start with how much is my dental practice worth and come back. This guide covers what’s specific to the state.
What’s different in Arizona
- One of the lowest flat taxes in the country. Arizona moved to a single low flat income tax rate. The state’s share of your proceeds is small; the structure questions that matter are almost entirely federal.
- Growth gets priced in. The Phoenix metro keeps adding people, and buyers underwrite patients who haven’t arrived yet. A practice in a growing suburb can carry a premium, and DSO activity in the Valley is heavy enough that running a real process usually surfaces more than one bidder.
- Ownership rules. Arizona keeps clinical ownership and control of dental practices with licensed dentists. DSOs operate through management arrangements, and the deal you sign reflects that structure.
- Non-competes. Arizona enforces non-competes that are reasonable in time and geography, and the ones tied to a practice sale get the most deference. If you plan to keep practicing in the Valley, the radius you agree to matters.
I'm a dentist, not a lawyer or CPA. Structure, tax, and contract questions deserve professional advice specific to your situation.
What I’d do first
Know your own EBITDA and know who’s actually buying in your metro before you respond to anyone. If you want a second set of eyes on your numbers, send them through the free valuation review. I’ll reply within 48 hours with my honest read.
— Kevin