All About Buying and Building Dental Practice

Explore buying a dental practice or building a new office, including locating offices, negotiating terms, financing, demographics, entity selection, and startup marketing.

Explore the dental practice purchase workflow, from locating the right opportunity and evaluating financials to letters of intent, financing, and broker-driven negotiations, ending with post‑closing transition.

Understand the role of a dental broker in practice purchases, who facilitates seller and buyer communication, offers limited liability, and earns commission; buyers must perform due diligence on practice records.

Find a dental practice for sale by exploring options like buying your current office, online marketplaces, dental association classifieds, Craigslist, and regional brokers; shortlist based on budget and preferences.

Review the profit and loss statement to assess practice profitability. Compare broker appraisal and breakout documents to understand fees and value drivers.

Evaluate broker documentation to assess net revenue margins, revenue trends, and the multiplying factor, then consider demographics, insurance mix, and equipment needs to determine practice value.

Negotiate the right price for dental practices by recognizing distress sales, seller circumstances, and market pricing; leverage broker appraisals and due diligence to secure favorable terms.

Learn how to craft a letter of intent for buying a dental practice, defining parties, purchase price, assets, payment terms, goodwill, leases, transitions, and confidentiality.

Learn why you need an accountant and an attorney when buying or building a dental practice, and how they review broker financial documents and guide letters of intent and contracts.

Explore financing options for purchasing a dental practice, including bank loans, seller-owner financing via a promissory note, and self-financing, documentation like proof of residency or citizenship, license, and bank statements.

Explore business entity options for a dental practice, including LLCs and C-corps, comparing pass-through taxation with double taxation, and outlining steps with an accountant, obtaining an EIN, and state registrations.

Understand dental practice leases, including five to ten year terms and base rent. Negotiate triple net costs, ownership of improvements, and options to buy or free rent.

Negotiate the sale and purchase agreement for a dental practice, covering goodwill, non-compete, leases, payables, and due diligence by reviewing records, bank statements, licenses, and work in progress.

Learn how to manage transition and communication during dental practice sale, including pre-signing staff discussions, onboarding, salary decisions, insurance registrations, and preserving patient relationships.

Examine transition challenges from long-tenured staff retention to the outgoing dentist's interference, patient acceptance, and misdirected billing, with emphasis on clear communication and centralizing checks.

Review key strategies for buying and building a dental practice, including evaluating practice demographics, negotiating terms, and understanding letters of intent, financing, and legal considerations.