The Dentist Money Show | Financial Planning & Wealth Management #684: Why Exit Planning Should Start Long Before You Sell
Sep 3, 2025
Sara Stock, an attorney and founder of Stock Legal, shares her expertise on the intricacies of dental practice management and exit strategies. She introduces the 'crawl, walk, run' approach and explains how phantom equity can ease partnerships. The discussion emphasizes the importance of cost-benefit analyses before purchases and highlights that smart exit planning can significantly enhance a practice's value. Stock also dives into the emotional challenges of selling a practice and the essential steps for a smooth transition.
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Stock Legal’s Shift To Serving Dentists
- Sara Stock left a large law firm to serve family‑style business owners and built Stock Legal into a 16‑lawyer firm.
- The firm now signs dozens of engagement letters monthly and focuses on dentists and doctors.
Use Phantom Equity As Training Wheels
- Start incentive equity with phantom equity as a trial period before granting real ownership.
- Use 1–4 years of phantom equity to test fit without giving full control or legal strings.
Link Equity Grants To Milestones
- Tie incentive equity to milestone vesting and clear projections so recipients understand payoffs.
- Use profits interests or restricted units with vesting cliffs linked to growth targets.