PROFITTHEORY

Buying a dental practice

How to buy a dental practice

Buying a dental practice means confirming the collections, patient base and team are real and transferable, then financing the purchase so the payment leaves room for your own income. Line up financing conversations early — practice lenders often pre-qualify buyers.

Plan my practice purchase Check your debt coverage

Estimates only. Results vary. No guarantee of approval, rates or savings.

Profit Theory is not a lender. Providers make all funding decisions; approval is never guaranteed.

Roadmap

  • Get pre-qualified and set a price range from cash flow
  • Review practice listings and production reports
  • Sign an LOI
  • Diligence: collections, payer mix, active patients, hygiene schedule, staff, equipment, lease
  • Finalize financing and purchase agreement
  • Plan the transition with the seller

What to look at closely

Collections (not just production), insurance vs. fee-for-service mix, new-patient flow, hygiene recall, associate dependence, equipment age and the lease term and assignment rights.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$

Net income + interest + depreciation/amortization + documented add-backs.

$
$
$
%
years
x

Debt service coverage (DSCR)

2.64x

Meets your 1.25x target.

Debt / EBITDA

2.17x

New annual payments

$77,639

Max new loan at 1.25x

$1,313,781

Each lender calculates cash flow and coverage its own way. Educational estimate, not a credit decision.

Build my financing planOr talk it through with your financing specialist →

Estimates only. Results vary. No guarantee of approval, rates or savings.

Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a financing specialist

Common questions

How do dental practice loans work?

Specialized lenders often finance most of the purchase based on collections and the buyer's credentials. Terms vary; lenders decide.

Should I hire a broker or attorney?

A dental-experienced attorney and CPA are strongly recommended.

How long does it take?

Often a few months from LOI to close.