What to Look for When Buying an Established Dental Practice

Buying an established dental practice is one of the most significant investments a dentist can make. It’s not just a financial decision—it’s about stepping into a community, inheriting a patient base, and shaping your future career. With the right evaluation strategy, buying can be more rewarding than starting from scratch. But overlooking key details could turn a promising purchase into a costly mistake.

Whether you're a new dentist eager to move into private ownership or an experienced practitioner looking to expand, knowing what to look for is essential. From clinical infrastructure to staff dynamics, every detail matters. With the growing use of platforms like the PracticeFinder App, which streamlines access to verified listings and transition resources, it's easier than ever to start strong, as long as you know what to prioritize.

Why Buy an Existing Practice?

Before we break down what to look for, it’s worth understanding why buying often makes financial and operational sense.

• Immediate cash flow from an existing patient base

• Established staff and systems already in place

• Community reputation and trust that may have taken years to build

• Reduced risk compared to starting from scratch
  
  

While the upfront cost may be higher than launching your own office, the ability to walk into a functioning practice with predictable income makes the investment worthwhile—if the right practice is chosen.

Top 6 Things to Evaluate Before Buying a Dental Practice

Let’s break down the most important factors every buyer must evaluate before committing to a purchase.

1. Financial Performance and Profitability

Understanding the financial health of the practice is non-negotiable. Ask for at least 3 years of profit and loss (P&L) statements, tax returns, and accounts receivable aging reports. Key numbers to review include:

• Net collections

• Overhead percentage (ideally under 65%)

• New patient flow per month

• Hygiene production as a percentage of total revenue
  
  

Watch out for inflated seller salaries or non-recurring expenses that might distort profitability. If you're securing practice financing, your lender will closely review these figures—so it’s wise to analyze them early.

2. Active Patient Count and Recall System

One of the biggest selling points of a dental practice for sale is its existing patient base. But don’t just ask for the total number—request details on active patients (those seen within the past 18–24 months). Also, examine the effectiveness of the practice’s recall system.

A well-maintained recall system with good hygiene compliance indicates strong operational health and patient loyalty.

3. Equipment and Technology Condition

Check the age, functionality, and condition of all dental equipment for sale included in the transaction. Modern practices are expected to have digital x-rays, intraoral cameras, and updated operatory chairs. If major replacements are needed post-sale, they could quickly inflate your startup costs.

Inspect or request documentation for:

• Equipment depreciation schedules

• Software and EHR systems

• Technology integration (e.g., paperless records, imaging tools)
  
  

Outdated technology can affect productivity and patient perception.

4. Staff and Team Dynamics

An experienced and loyal team is a tremendous asset—often more valuable than equipment. Ask for staff roles, tenure, compensation, and benefit packages. Interviewing key team members (with the seller’s permission) can help you assess workplace culture and potential for retention.

Keep in mind that sudden ownership transitions can be unsettling. Your ability to retain staff can significantly affect the practice’s short-term performance.

5. Lease Terms and Location Value

Real estate plays a critical role in long-term success. If the medical commercial real estate is included in the deal, evaluate property value and any potential for expansion or upgrades. If leasing, review:

• Remaining lease term and renewal options

• Rent compared to local averages

• Restrictions on renovations or signage
  
  

Also consider the location’s visibility, parking, neighborhood demographics, and accessibility. A great patient base can still dwindle if the practice is inconvenient or outdated.

6. Seller Transition Plan

A smooth transition helps retain patients and staff. Understand how involved the seller will be post-sale. Will they stay on temporarily to introduce you to patients and support the handover? Or are they leaving immediately?

Ideally, the seller agrees to a short transition period (30 to 90 days) and introduces you personally to long-time patients. This continuity builds trust and reduces attrition.

Red Flags to Watch Out For

Here are a few warning signs that deserve closer scrutiny:

• Sharp revenue declines in the past 12 months

• High patient attrition with no clear explanation

• Overdue or uncollected accounts receivable

• Outdated or non-compliant equipment

• Staff turnover or dissatisfaction
  
  

The PracticeFinder App can help mitigate these risks by offering vetted listings and transition support from industry experts—eliminating surprises and ensuring the practice meets your criteria.

Final Checklist Before You Buy

Before signing on the dotted line, ensure the following are in order:

✔ Complete due diligence with a dental CPA
✔ Legal contract reviewed by a healthcare attorney
✔ Valuation aligned with market benchmarks
✔ Transition agreement clearly defined
✔ Financing pre-approved from a lender familiar with dental acquisitions

If you're using a Healthcare Transition broker, confirm that they are experienced specifically in dental practices—not just general business sales.

The Role of PracticeFinder App in Smart Practice Acquisitions

One of the best tools available to buyers today is the PracticeFinder App, which offers a streamlined, mobile-first way to browse verified dental listings, connect with brokers, and evaluate transition details—all in one place. Think of it as your go-to resource when looking for a private practice for sale without wasting time on unvetted or outdated listings.

You can filter searches by location, size, patient count, and price, saving valuable hours and ensuring you only pursue practices aligned with your goals.

Buy with Confidence, Not Caution

Buying an established dental practice is a bold and exciting step, but it demands careful planning. With the right due diligence, expert support, and smart use of platforms like the PracticeFinder App, you can secure a practice that not only meets your clinical goals but also sets you up for long-term financial success.

Search verified listings, connect with experienced brokers, and take control of your future with the PracticeFinder App.
Download today and begin your ownership journey with confidence.