Healthcare, Education & Personal Services · Buyer guide
Buying a Dental Practice business
Published · Reviewed by The Diligence Standard Team · Updated
Dental practices can have strong historical collections but still be highly dependent on the selling dentist. Patient retention, provider capacity and replacement compensation must be modeled carefully.
How the business works
Provider production, hygiene base, patient retention, payer mix, staff continuity, equipment and real estate determine transferable value.
Risks to test
- Seller production cannot be replaced economically
- Patient attrition after transition
- Hygienist/staff turnover
- Aging equipment or buildout
- Lease/real estate issues
- Payer contract changes
Evidence to request and reconcile
- Provider production/collections
- Active patient and recall reports
- Hygiene schedule
- Payer mix
- Staff payroll/tenure
- Equipment and lease/property records
Decision questions
- How much cash flow remains after paying market compensation for the seller’s clinical work?
- How many patients are truly active?
- What retention is realistic after transition?
- What equipment or buildout needs capital?
- Which staff members are essential to patient continuity?