Texas is one of the busiest dental transition markets in the country. If you own a practice in Dallas, Houston, Austin, or San Antonio, odds are a DSO has already mailed you, called your front desk, or found you through a study club. Here’s what’s different about selling in Texas, and what isn’t.
The math is the same everywhere
Buyers price EBITDA, not collections, in Texas 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 Texas
- No state personal income tax. The same deal leaves more in your pocket in Texas than it would in California or New York. Structure still matters: how the sale is split between asset classes and how equity rollover is treated changes your federal bill.
- Buyer density. The major Texas metros have some of the heaviest DSO activity in the country. More competing buyers is only an advantage if you talk to more than one. The first letter in your mailbox is rarely the best offer available to you.
- Ownership rules. Texas law keeps ownership of dental practices with licensed dentists. DSOs operate through management agreements and register with the state. The deal you sign reflects that structure, and it’s worth understanding what you’re keeping title to before you’re in the room.
- Non-competes. Texas generally enforces them when they’re reasonable in time, geography, and scope. If you plan to keep practicing after the sale, the non-compete deserves as much attention as the price.
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