Short Answer

Buying a dental practice takes 6–12 months from search to closing. Prices typically run 60–80% of trailing 12-month collections. Specialty dental lenders fund 100% of the purchase price for qualified buyers. The 7-step process: get pre-qualified, find a broker, identify a practice, sign LOI, complete due diligence, secure financing, and close.

How to Buy a Dental Practice (2026)

Key Takeaways

  • → Start the financing pre-qualification before looking at practices — knowing your buying power saves months.
  • → Specialty dental lenders fund 100% of purchase price for qualified buyers — minimal cash required at closing.
  • → Practice price is typically 60–80% of trailing 12-month collections, adjusted for profitability.
  • → Total timeline: 6–12 months from search to closing, plus 60–90 days of seller transition.
  • → The financial trend (3 years of P&L) matters more than equipment or location.

Step 1: Get Pre-Qualified for Financing

Start with the bank, not the listing. Pre-qualification is a soft credit pull (no impact to your score) that tells you what loan amount you can support. Knowing your buying power before you start looking saves you from falling in love with practices you can't afford — or, worse, settling for ones below your real capacity.

Pre-qualify with 2–3 dental specialty lenders: Live Oak Bank, Bank of America, Wells Fargo Practice Finance. Take 30 minutes per application. You'll get a target acquisition price range and a clear picture of your terms before stepping into broker conversations.

Step 2: Engage a Dental Practice Broker

Most quality practices ($400K+) are sold through brokers. The broker handles the listing, marketing, buyer screening, and much of the negotiation process. Sellers pay the broker's fee (typically 8–12% of the sale price), so as a buyer you don't pay directly — but you should understand the broker's role.

Major dental brokerages with national presence: Henry Schein Professional Practice Transitions, ddsmatch.com, Provide (formerly Lendio Practice), regional brokers like ROI Corp, Watson Brown Associates, First Choice DDS, and Cal Practice Sales. Many local markets also have independent brokers with deep relationships in your area.

Step 3: Identify Target Practices

The right practice matches three criteria: (1) financial fit with your buying capacity, (2) clinical fit with your skills and philosophy, and (3) lifestyle fit with your geographic and personal preferences.

When reviewing listings, focus on:

  • 3-year collections trend — Flat or growing is good; declining is a warning sign that requires investigation
  • Profit margin — 35%+ EBITDA margin is healthy
  • Active patient count — Patients seen in the last 18 months. 1,200–2,000 is typical for a single-doctor practice
  • Fee schedule — Insurance mix and out-of-pocket fee levels
  • Real estate situation — Lease vs. owned; lease terms remaining
  • Reason for sale — Retirement is ideal; burnout or financial distress requires deeper diligence

Step 4: Sign a Letter of Intent (LOI)

The LOI is a non-binding agreement outlining the basic deal terms before you spend money on full due diligence. Typical LOI components:

  • Purchase price and structure (asset sale vs. stock sale)
  • Earnest money deposit (often $5,000–$25,000, held in escrow)
  • Due diligence period (typically 30–60 days)
  • Closing date target
  • Transition arrangements with the seller
  • Exclusivity period (seller can't entertain other offers)

Step 5: Conduct Due Diligence

Due diligence is your chance to verify everything the listing said and uncover anything it didn't. Hire professionals:

  • Dental CPA — Reviews 3 years of tax returns, P&Ls, and adjusts for owner-specific expenses
  • Dental attorney — Reviews contracts, leases, employment agreements, regulatory compliance
  • Practice valuation expert — Independent valuation (often required by lender anyway)
  • Equipment inspector — Verifies operational condition of major equipment

Total professional fees: $8,000–$20,000. This is non-negotiable — saving on diligence is the single most expensive mistake new owners make.

Step 6: Finalize Financing

You've already pre-qualified. Now submit the full application to your chosen lender with all due diligence documents. Underwriting takes 30–60 days for conventional financing, 45–90 days for SBA 7(a). Most acquisition loans close roughly the same time as the practice purchase, with financing wired directly to the seller at closing.

Step 7: Close and Transition

Closing day involves multiple simultaneous transactions: the loan closes, the practice asset transfer happens, the lease assignment processes, and you take operational control. The day after closing, you're the practice owner.

Seller transition support matters more than most buyers expect. Negotiate at minimum 30 days of seller presence post-close to introduce you to patients and staff, transfer institutional knowledge, and ensure clinical continuity. 90 days is better. For larger practices, 6–12 months of part-time seller employment is increasingly common.

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Related Resources

Frequently Asked Questions

How long does it take to buy a dental practice?
From beginning your search to closing: typically 6–12 months. Finding the right practice can take 3–9 months depending on your market. Due diligence, financing, and closing take 60–120 days once you've signed an LOI. Plan for an additional 90 days of seller transition support after closing.

How much does it cost to buy a dental practice?
US dental practice acquisition prices range widely. Single-doctor practices typically run $300K–$1M. Multi-doctor practices $800K–$3M. Specialty practices (orthodontics, oral surgery) command higher prices: $500K–$5M+. Price is typically 60–80% of trailing 12-month collections, with adjustments for profitability and growth.

What should I look for when buying a dental practice?
Key factors: consistent collections trend (last 3 years), profit margin (35%+ is healthy), active patient count, fee schedule alignment with your clinical philosophy, lease terms, staff retention risk, location demographics, and reason the seller is exiting. The financial story matters more than the equipment.

Can a new dental school graduate buy a practice?
Yes — specialty dental lenders like Live Oak Bank, Bank of America, and Wells Fargo regularly fund new graduate acquisitions. Requirements: strong personal credit (680+), completed residency or 1+ year as an associate, and a quality practice with stable cash flow. New graduate financing often includes a seller note or mentor transition arrangement.

Do I need a dental practice broker?
Brokers represent 70%+ of practice sales over $400K. They handle listing, marketing, buyer screening, and transition support. Sellers typically pay broker fees (8–12% of sale price). As a buyer, working through a broker gives you access to off-market listings and structured negotiation support. Buyer-side dental brokers also exist for major acquisitions.