How to buy a dental practice

Navigating the complexities of acquiring a dental practice in 2025 demands a strategic, informed approach. From securing financing amid evolving interest rates to performing meticulous due diligence and planning for post-acquisition success, buyers must be prepared. This educational guide outlines a complete and essential roadmap, covering the critical steps involved in understanding how to buy a dental practice for a successful and profitable transition.

Securing Financing and Critical Due Diligence

The journey of how to buy a dental practice begins with securing capital. In 2025, options include government-backed SBA 7(a) loans (rates 10.5%–15.5%), conventional bank loans, and equipment financing. Lenders prioritize strong credit scores (above 700), cash reserves, and a detailed business plan. Once financing is in view, rigorous due diligence is paramount. This process moves beyond financials to a thorough legal review, including verifying HIPAA compliance for patient data, examining employee contracts, and assessing digital assets to identify technical debt.

Valuation in a DSO-Driven Market

A core element of how to buy a dental practice involves accurate valuation amid dynamic market trends. Old models based on collections are obsolete. Today, valuations focus on profitability metrics like EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), favored by rapidly growing Dental Service Organizations (DSOs). Key Performance Indicators (KPIs) like a 98%+ collection percentage, an 85%+ hygiene recall rate, and consistent new patient flow demonstrate a practice's health. The rise of DSOs, projected to affiliate with up to 65% of practices by 2025, has intensified market competition for desirable practices.

Post-Acquisition Integration and Retention

A successful transition depends on seamless post-acquisition integration. The primary focus is retaining two key assets: the staff and the patient base. For staff, success hinges on transparent communication about changes, respecting the existing culture, and providing training on new systems. For patients, a smooth handover is critical. The selling dentist should actively introduce the new owner to build trust. Emphasizing continuity of care and proactively addressing patient concerns can significantly reduce attrition. Operationally, integrating patient management software and financial systems streamlines workflows and improves efficiency from day one.

Conclusion

Acquiring a dental clinic is a multi-faceted process extending beyond the final signature. Success requires diligent preparation in financing, a thorough legal review, modern valuation understanding, and a thoughtful integration plan. Ultimately, a successful acquisition boils down to a well-executed strategy for how to buy a dental practice, ensuring both long-term stability and future growth.

For this blog, VBC Whip used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.