Buying a Dental Practice

Loan options

• SBA 7(a) Standard Loan$5,000,000 · 10-year repayment for goodwill-heavy acquisitions; up to 25 years if real estate is included in the transaction; variable rates typically Prime + 2.25–2.75%

  Associate dentists acquiring a general dentistry practice in the $800K–$3M collections range where goodwill represents the majority of the purchase price and no seller financing is available

• SBA 7(a) Small Loan

  Buyers acquiring smaller solo practices under $1M in collections or financing a partial buyout from a partner dentist in a two-doctor practice

• SBA 504 Loan$5,500,000 combined (SBA debenture up to $5M) · 10- or 20-year fixed-rate term on the SBA debenture portion; structured as 50% conventional lender, 40% SBA-backed debenture, 10% buyer equity

  Dental practice acquisitions that include real estate — particularly when a buyer is purchasing the practice and the office building simultaneously, locking in a fixed rate on the real property component

Eligibility

• Buyer must hold an active, unrestricted dental license in the state where the practice operates — SBA lenders will verify licensure before issuing a commitment letter, and state dental board restrictions on corporate or non-dentist ownership must be addressed in the entity structure
• Practice must demonstrate 3 years of tax returns and production/collections reports showing sufficient debt service coverage — most SBA lenders require a minimum 1.25x DSCR on a pro forma basis using the buyer's normalized compensation
• Buyer must inject a minimum 10% equity contribution from their own funds (not borrowed), though lenders will often require 15–20% when payer mix is heavily Medicaid-dependent or when the selling dentist is the sole producer responsible for 80%+ of collections
• The business must qualify as a for-profit small business under SBA size standards — dental practices generating under $9M in annual receipts typically qualify, covering the vast majority of independent practice acquisitions

Step by step

1. Engage an SBA Lender with Dental Practice Expertise2–4 weeks

   Select an SBA Preferred Lender Program (PLP) lender or a dental-specific SBA lender before submitting a full application.

2. Complete Due Diligence on the Practice4–6 weeks

   Conduct thorough due diligence in parallel with loan processing.

3. Submit Formal SBA Loan Application and Receive Approval3–6 weeks

   Submit the full SBA loan application package including the SBA Form 1919 (borrower information), SBA Form 912 (personal history), business financial statements, personal tax returns for 3 years, the executed LOI or purchase agreement, and a business plan with pro forma projections demonstrating debt service coverage.

4. Finalize Purchase Agreement and Negotiate Transition Terms3–5 weeks

   Work with a dental-specific attorney to finalize the asset purchase agreement, bill of sale, and all ancillary documents including the seller's transition employment agreement (typically 6 months to 2 years), patient notification letters, staff retention agreements, and any seller non-compete covering a 5–10 mile radius for 3–5 years.

5. Close the Transaction and Begin Transition1–2 weeks for closing; 6–12 months active transition

   Coordinate the closing with your SBA lender, attorney, and the seller's team. Funds are wired, the asset purchase agreement is executed, and ownership transfers.

Other financing

• SBA 7(a) Loan

  The most common financing tool for associate dentists buying their first practice. SBA 7(a) loans cover up to 90% of the purchase price including goodwill, equipment, and working capital, with repayment terms up to 10 years.

  • + Low down payment (10–15%) preserves cash for working capital and early practice investments like equipment upgrades
  • + Lenders experienced in dental acquisitions understand goodwill-heavy valuations and active patient count metrics
  • − Variable interest rates tied to Prime can increase debt service costs if rates rise during the loan term
  • − Underwriting scrutiny on Medicaid-heavy payer mix or sole-producer practices may result in loan denial or reduced proceeds
• Seller Financing (Seller Carry)

  The selling dentist holds a promissory note for 10–20% of the purchase price, typically subordinate to the SBA loan. Often structured as a 3–5 year term paired with a 1–2 year post-close employment agreement to support patient and staff retention.

  • + Signals seller confidence in practice performance and smooths SBA lender approval by closing the financing gap
  • + Flexible repayment terms can be deferred or tied to production milestones during the transition period
  • − SBA rules restrict seller note terms — it must typically be on full standby for the first 24 months of the SBA loan
  • − Seller may resist carry if they need full liquidity at close, requiring price concessions or alternative gap financing

Lender tips

• Prioritize SBA Preferred Lender Program (PLP) lenders who have closed at least 10–15 dental practice acquisitions — they can approve loans in-house without SBA review, cutting 2–4 weeks from your timeline and reducing the risk of last-minute conditions
• Present a clean, well-organized loan package from day one including normalized financials from a dental CPA, a practice management software production report, and a written explanation of any revenue anomalies — lenders reward borrowers who demonstrate that they understand the business they are buying
• If the seller is willing to carry 10–15% on a standby note, disclose this to your lender early and structure it as SBA-compliant standby debt (no payments for 24 months) — this can reduce your required cash injection while demonstrating seller confidence in the business's ongoing performance
• Obtain a formal practice appraisal from a credentialed dental practice valuator (American Society of Appraisers or AICPA-certified) — many SBA lenders require this for transactions over $250,000 in goodwill, and an independent appraisal strengthens your file even when not required

• SBA 7(a) Asset Purchase with Seller Carry

  The most common structure for individual buyer acquisitions. The buyer obtains an SBA 7(a) loan (up to $5M) to fund 80–90% of the purchase price, with the selling dentist carrying a subordinated seller note for the remaining 10–20%.

  • + Enables associate dentists to acquire established practices with 10–20% down, preserving working capital for operations and equipment upgrades
  • + Seller carry signals the seller's confidence in the practice's continued performance and reduces buyer financing risk
  • − SBA lenders require the selling dentist to execute a personal guarantee subordination and may restrict seller note repayment until SBA debt is partially retired
  • − Transaction timelines typically run 60–90 days due to SBA underwriting, which can frustrate sellers under time pressure
• DSO Affiliation with Partial Equity RolloverDSO Upfront Cash: 60–80% of enterprise value | Seller Equity Rollover: 20–40% | Earnout: 5–15% of total consideration tied to 2–4 year production targets

  A dental service organization acquires a controlling interest (60–80%) in the practice while the selling dentist rolls 20–40% of their equity into the DSO's parent entity or a newly formed management company.

  • + Equity rollover creates meaningful upside if the DSO platform achieves a successful exit, effectively allowing sellers to 'bet on the platform' with a portion of their proceeds
  • + Operational support from the DSO removes administrative burden, allowing the selling dentist to focus purely on clinical production
  • − Rolled equity is illiquid and its ultimate value depends entirely on the DSO's financial performance and exit timeline, which is outside the seller's control
  • − Non-compete agreements in DSO transactions are typically broader in scope and duration than in private acquisitions, limiting the seller's options if the relationship sours
• All-Cash Asset Purchase (No Seller Financing)Buyer Cash/Credit Facility: 100% at closing | Seller Note: 0% | Transition Employment: 3–6 months at reduced compensation

  The buyer — typically a DSO, dental group, or well-capitalized individual — pays the full purchase price at closing with no seller note or earnout.

  • + Provides complete liquidity at closing with no contingent obligations, earnout risk, or ongoing financial entanglement with the buyer
  • + Faster transaction timelines (30–45 days) compared to SBA-financed deals, reducing the risk of practice value deterioration during a prolonged sale process
  • − Purchase price is typically lower than seller-financed or DSO rollover structures, representing a real economic trade-off for maximum certainty
  • − Short transition periods (3–6 months) increase patient attrition risk, particularly in practices where the selling dentist has 20+ year patient relationships

Negotiation tips

• Tie the seller note repayment schedule to active patient retention — negotiate a claw-back or payment deferral provision if the active patient count drops below a defined threshold (e.g., 850 patients seen within 18 months) in the first 24 months post-close, protecting the buyer from paying full price for a deteriorating patient base.
• Require the selling dentist's transition employment agreement to specify minimum clinical days per week (typically 3–4 days for the first 12 months) — vague 'best efforts' language is unenforceable and allows a disengaged seller to coast while patients quietly transfer to competing practices.
• In DSO transactions, negotiate the rollover equity valuation methodology upfront and in writing — insist on a defined EBITDA multiple and clear definitions of 'adjusted EBITDA' before signing the LOI, as DSO platforms often use aggressive add-backs that inflate enterprise value and dilute the seller's effective rollover percentage.
• Request a payer mix warranty in the purchase agreement — if the practice is represented as 70% PPO and post-close insurance audits reveal 30% Medicaid, you need contractual recourse through an indemnification provision or purchase price adjustment mechanism, not just verbal representations from the broker.

Patient Base & Recall Metrics

• Pull active patient count report from practice management software for the trailing 18 months.critical

  Active patient count (800–1,200 minimum) directly drives recurring hygiene and restorative revenue.

• Calculate hygiene recall compliance rate — percentage of active patients completing scheduled recare visits.critical

  Recall rates above 75% indicate a healthy, sticky patient base and predictable future revenue.

• Review new patient flow trends month-over-month for the trailing 24 months.important

  Consistent new patient volume sustains growth and offsets natural attrition from the existing base.

• Assess patient demographic concentration — age distribution and geographic proximity to the practice.standard

  Heavily aged or geographically dispersed patient bases carry higher post-acquisition attrition risk.

Financial Verification & Collections Analysis

• Reconcile production vs. collections reports from practice software against bank deposits and tax returns.critical

  Gaps between production and collections reveal write-offs, billing inefficiencies, or unreported adjustments.

• Review accounts receivable aging report — segment balances by 0–30, 31–60, 61–90, and 90+ days.critical

  Aged AR over 90 days is often uncollectable and inflates perceived practice revenue.

• Normalize owner compensation by adding back personal expenses, above-market salary, and one-time costs.critical

  True EBITDA margin of 15–30% is only visible after removing owner-specific financial distortions.

• Confirm three years of tax returns match practice management software production and collections totals.important

  Discrepancies between reported income and software totals suggest cash transactions or bookkeeping issues.

Payer Mix & Insurance Credentialing

• Request a full payer mix breakdown showing percentage of revenue by fee-for-service, PPO, HMO, and Medicaid.critical

  Fee-for-service and strong PPO mix supports higher EBITDA margins and stronger valuation multiples.

• Obtain copies of all active insurance contracts and verify current reimbursement rates for top 10 procedures.important

  Reimbursement rates vary widely by network and directly impact post-acquisition profitability.

• Confirm insurance credentialing is current for all providers and assess transferability to the new owner.critical

  Lapsed or non-transferable credentialing causes revenue gaps of 30–90 days post-closing.

• Identify any pending insurance contract renegotiations or termination notices from payers.important

  A pending PPO termination can eliminate a significant revenue stream immediately post-acquisition.

Equipment, Facility & Capital Requirements

• Conduct a room-by-room equipment inventory including age, brand, service history, and current functionality.critical

  Aging chairs, compressors, and sterilization units require near-term replacement averaging $30K–$80K per operatory.

• Verify digital X-ray and imaging capabilities — confirm presence of digital sensors, panoramic, and CBCT if applicable.important

  Analog X-ray systems require $50K–$150K in digital conversion costs, reducing effective purchase price.

• Review the office lease terms — confirm remaining term, renewal options, and landlord consent to assignment.critical

  A lease with fewer than five years remaining and no renewal option creates immediate relocation risk.

• Assess practice management software — confirm system, version, data migration feasibility, and support status.standard

  Migrating patient records from unsupported software creates operational disruption and potential data loss.

Dental Practice-specific checks

• Verify the practice lease has at least 5 years remaining or renewal options, and confirm landlord consent to assignment is obtainable before signing a letter of intent.
• Request the last 24 months of new patient numbers monthly — declining new patient flow below 15 per month signals weakening referral sources or community reputation issues.
• Confirm all specialty referral relationships (oral surgery, orthodontics, endodontics) are practice-based, not personal to the selling dentist, to protect referral revenue post-transition.
• Review any pending or historical HIPAA compliance issues, OSHA inspection records, and malpractice claims to identify regulatory or liability exposure not reflected in financials.
• Assess whether the practice management software, digital imaging systems, and patient communication platforms are modern and transferable without costly re-licensing or data migration fees.

Red flags

• Selling dentist produces more than 85% of collections with no associate and refuses a transition employment agreement longer than 90 days.
• Active patient count below 800 when seen within the last 18 months, with declining new patient flow for two consecutive years.
• Medicaid or HMO payer mix exceeding 40% of total collections with reimbursement rates materially below regional PPO averages.
• Accounts receivable aging shows more than 20% of balances beyond 90 days with no documented collection follow-up process.

What the LOI covers

• Parties and Practice Identification

  Identifies the buyer entity, the selling dentist or entity, and the specific dental practice being acquired — including the legal name, DBA, practice address, and NPI number.

• Deal Structure and Asset Allocation

  Specifies whether the transaction is structured as an asset purchase or stock purchase, identifies the key asset categories being acquired, and provides a preliminary allocation framework.

• Financing Contingency

  Discloses the buyer's intended financing method and makes the LOI contingent on financing approval within a defined period.

• Due Diligence Period and Access

  Establishes the length of the due diligence period, the specific documents and data the seller must provide, and the confidentiality obligations governing all information exchanged.

• Seller Transition and Employment Terms

  Outlines the selling dentist's post-closing role, compensation structure, duration of transition employment, and the scope of their clinical and patient relationship transition obligations.

Terms to negotiate

• Active Patient Count Threshold and Purchase Price Adjustment

  The number of active patients — typically defined as those seen within the trailing 18 months — is a direct driver of practice value and post-acquisition revenue.

• Payer Mix Representations and Reimbursement Rate Disclosures

  Payer mix quality — specifically the ratio of fee-for-service to PPO to Medicaid collections — is one of the most significant drivers of EBITDA margin and post-acquisition profitability.

• Seller Transition Length and Minimum Production Obligation

  The risk of patient attrition following ownership transition is the buyer's single largest post-closing exposure.

• Insurance Credentialing Timing and Risk Allocation

  New owner credentialing with PPO networks (Delta Dental, MetLife, Cigna, Aetna) can take 60–120 days and creates a billing gap risk if not managed properly.

Target profile

• Fee-for-service or PPO-dominant payer mix with Medicaid exposure below 20% of collections, ensuring favorable reimbursement rates and lower patient churn
• Minimum 800 active patients seen within the trailing 18 months with documented hygiene recall compliance of 65% or higher, indicating a loyal and recurring patient base
• Practice located within a 30–90 minute drive of the platform's existing locations to enable shared staffing, equipment loans, and coordinated patient referrals
• Selling dentist willing to sign a 12–24 month transition and employment agreement post-close, with a clinical associate or second producer already on staff to mitigate key-person risk

Platform and add-on criteria

• Fee-for-Service or PPO-Dominant Payer MixPlatform

  Target practices where Medicaid represents less than 20% of revenue, ensuring sustainable reimbursement rates and a patient base attractive to institutional buyers at exit.

• Multi-Producer or Associate-Ready InfrastructurePlatform

  Avoid sole-producer dependency. Platforms should have at least one associate dentist or clear capacity for one, reducing key-person risk and enabling production growth post-acquisition.

• Modern Facility with Lease OptionalityPlatform

  Require updated operatories, digital X-ray, and a lease with at least 5 years remaining plus renewal options. Deferred capex and short leases undermine platform stability and lender confidence.

• 800+ Active Patients Within 18 MonthsAdd-on

  Add-ons must have a demonstrable, loyal patient base. Active patient count is the most reliable indicator of recurring revenue and hygiene recall strength in a tuck-in target.

Acquisition sequence

1. Acquire the Platform Practice — Your Flagship LocationOperational stabilization, management infrastructure build-out, and associate recruitment to reduce key-person dependency at the flagship practice

   The first acquisition is the most critical and should be the strongest practice in your target geography.

2. Add a Specialty-Capable or High-Production PracticeSpecialty revenue integration, referral internalization, and EBITDA margin expansion through high-value procedure capture across the platform

   By the third acquisition, target a practice that either already offers specialty services — implants, oral surgery, pediatric dentistry, or orthodontics — or has the patient volume and operatory capacity to support specialty expansion.

3. Optimize the Portfolio — Standardize Operations Across All LocationsRevenue cycle centralization, payer contract renegotiation, supply cost reduction, and building the reporting infrastructure that supports a credible institutional exit process

   With three or more locations and $4M–$8M in aggregate collections, shift focus from acquisition to optimization. Centralize your revenue cycle management team — billing, credentialing, and insurance follow-up — into a single function handling all locations.

Value creation levers

• Hygiene Recall Optimization Across All Locations

  Hygiene revenue is the economic engine of every dental practice and the clearest indicator of patient retention health.

• Associate Dentist Deployment to Reduce Key-Person Risk

  The single largest discount applied to dental practice valuations is key-person dependency — specifically, a sole-producer model where one dentist generates 85–95% of collections.

• Centralized Revenue Cycle Management and Billing Efficiency

  Independent dental practices typically run their own billing from the front desk — a model that results in 8–15% of insurance claims being denied or written off due to coding errors, credentialing lapses, or slow follow-up on aging receivables.

• Group Purchasing and Supply Cost Reduction

  Dental supplies — consumables, lab fees, and small equipment — typically represent 6–8% of collections at an independent practice.

Day one

• Meet individually with every clinical and front-office team member to confirm their role, compensation, and schedule are unchanged — silence breeds resignation letters.
• Verify all insurance credentialing applications are submitted or transferred, including NPI enrollment, PPO panel assignments, and any Medicaid provider numbers requiring state approval.
• Confirm the selling dentist's transition schedule is posted and communicated internally so staff know exactly when and how the handoff occurs over the coming weeks.
• Access and review the practice management software (Dentrix, Eaglesoft, or equivalent) to confirm active patient counts, upcoming hygiene appointments, and outstanding accounts receivable aging.
• Post a patient-facing notice — in-office signage, website update, and automated recall messaging — introducing new ownership while emphasizing continuity of care and the existing clinical team.

Stabilization (Days 1–30)

• Hold a practice-wide team meeting on day one to introduce yourself, reaffirm employment terms, and open a direct feedback channel for staff concerns.
• Audit all open insurance claims and aging AR over 60 days; assign a billing lead responsible for resolving credentialing mismatches before month-end.
• Shadow the selling dentist in at least two patient consultation sessions to observe chairside communication style and patient relationship dynamics firsthand.

Optimization (Days 31–60)

• Pull a recall compliance report from the practice management system; launch a targeted reactivation campaign for patients overdue 12–18 months via text and email.
• Request a payer-by-payer production report from your biller; compare reimbursement rates against ADA benchmarks and identify contracts worth renegotiating or dropping.
• Walk every operatory with your lead assistant to document equipment age, functionality, and any maintenance deferrals that could affect patient capacity or safety compliance.

Growth (Days 61–90)

• Survey existing patients digitally post-appointment to identify unmet service demand — implants, Invisalign, or whitening are common high-margin gaps in general practices.
• Implement a simple monthly team huddle with production scorecards visible to all staff, creating shared accountability for collection and recall targets.
• Engage a dental-specific CPA to normalize your first 60 days of financials and establish a clean baseline P&L before filing any tax or SBA reporting requirements.

Pitfalls

• Losing Hygienists in the First 30 Days

  Hygienists drive 25–35% of practice revenue through recall visits. Any uncertainty about schedule changes, compensation, or new management style can trigger immediate resignations that take months to replace.

• Credentialing Gaps That Freeze Reimbursements

  If your NPI or PPO panel enrollment isn't transferred or re-credentialed before close, insurance claims will reject for weeks, creating cash flow gaps that strain operations precisely when startup costs are highest.

• Mishandling the Patient Communication Around Ownership Change

  Patients loyal to the selling dentist need proactive, personal communication — not a generic form letter. Silence or impersonal outreach accelerates attrition, especially among high-value fee-for-service patients.

• Accepting Active Patient Counts Without Verificationcritical

  Sellers often cite total patient records rather than truly active patients — those seen within 18 months. A practice claiming 2,000 patients may have only 800 genuinely active, dramatically reducing real revenue potential.

• Underestimating Key-Person Dependency on the Selling Dentistcritical

  When the selling dentist generates 85–95% of collections, patient attrition post-close can be severe. Buyers who don't negotiate meaningful transition agreements often see revenue drop 20–35% in year one.

• Ignoring Payer Mix and Medicaid Reimbursement Exposurecritical

  Practices with 40%+ Medicaid revenue carry lower reimbursement rates, higher patient churn, and DSO valuation discounts. Buyers miss this risk when reviewing only top-line collections without a payer breakdown.

• Overlooking Deferred Equipment Capital Requirementsmajor

  Outdated X-ray systems, aging chairs, or missing CBCT technology can require $150K–$400K in near-term capital investment that destroys post-acquisition cash flow and SBA debt service coverage.

• Failing to Confirm Insurance Credentialing Transferabilitymajor

  PPO credentialing doesn't automatically transfer to a new owner entity. Gaps during re-credentialing can freeze insurance billing for 60–120 days post-close, creating serious cash flow disruption.

• Neglecting Hygienist and Front-Office Retention Riskmajor

  Experienced hygienists drive recall compliance and represent 25–35% of practice revenue. Losing two hygienists post-close can reduce collections by $200K+ annually and take 6–12 months to stabilize.

Warning signs

• Seller refuses to provide a trailing 24-month active patient report filtered by last appointment date from practice management software
• Collections are declining year-over-year while overhead is rising, suggesting the seller is already experiencing patient attrition or fee compression
• More than 40% of revenue comes from Medicaid or HMO plans with reimbursement rates below 60% of UCR fees
• No associate dentist or trained team capable of running daily operations independently if the selling dentist exits abruptly
• Lease expiring within 24 months with no documented renewal option or landlord unwillingness to assign the lease to a new ownership entity

Phase 1: Financial Documentation & Normalization (18–24 months before listing)

• Compile 3 years of profit and loss statements, tax returns, and production/collections reportshigh

  Pull practice management software reports (Dentrix, Eaglesoft, or equivalent) reconciled against your tax returns for the trailing 36 months. Buyers and SBA lenders require this to underwrite the deal.

• Engage a dental-specific CPA to normalize owner compensationhigh

  Owner compensation, personal vehicle expenses, family payroll, continuing education travel, and other discretionary add-backs must be identified and documented as Seller's Discretionary Earnings (SDE) or EBITDA adjustments.

• Eliminate commingled personal and business expenses from practice accountshigh

  Personal credit card charges run through the practice, non-business meals, or personal insurance billed to the practice create audit risk and give buyers grounds to discount the financials.

Phase 2: Patient Base & Hygiene Program Analysis (15–18 months before listing)

• Run an active patient count report for patients seen within the last 18 monthshigh

  Most buyers define an active patient as one who has visited within the past 18 months. Pull this report directly from your practice management software and document the count.

• Calculate hygiene recall compliance rate and address gapshigh

  Divide the number of completed hygiene appointments in the past 12 months by the number of active patients due for a recall visit. A compliance rate below 65% signals patient attrition risk to buyers.

• Conduct a payer mix audit and document insurance fee scheduleshigh

  Create a breakdown of collections by payer type: fee-for-service, PPO, Medicaid/CHIP, and HMO. Note any contracts with below-market reimbursement rates or pending renegotiations.

Phase 3: Operational Infrastructure & Staff Stability (12–15 months before listing)

• Prepare a complete staff roster with tenure, compensation, role, and employment statushigh

  Document every team member including hygienists, dental assistants, front office, and office manager — with their start date, hourly or salaried compensation, full-time vs. part-time status, and whether they have signed employment agreements or non-solicitation clauses.

• Identify and retain a capable office manager or lead coordinator who can operate independentlyhigh

  Buyers — especially DSOs — want to know the practice can run without the selling dentist managing day-to-day operations. If you are currently the de facto office manager, start delegating administrative responsibilities now.

• Document clinical and administrative systems and standard operating proceduresmedium

  Write down or record how your practice handles scheduling, treatment planning, insurance verification, billing follow-up, new patient onboarding, and recall management.

Phase 4: Legal, Licensing & Lease Compliance (9–12 months before listing)

• Confirm all insurance credentialing, DEA registration, and state dental board licenses are currenthigh

  Buyers — particularly DSOs and associate dentists using SBA financing — cannot assume your payer contracts without active, transferable credentialing. Lapsed DEA numbers or state board issues can delay or kill a transaction.

• Review your dental office lease and confirm term, renewal options, and assignabilityhigh

  Most dental practice asset sales require the buyer to assume or re-negotiate your office lease.

• Identify any restrictive covenants or ownership entity issues that could complicate a salemedium

  Dental practices in many states have corporate practice of dentistry restrictions limiting non-dentist ownership — relevant if a DSO buyer uses a management services agreement structure.

Quick wins before a sale

• Run your active patient count report today (patients seen in last 18 months) and compare it against your recall list — gaps here are your single fastest value-recovery opportunity
• Stop running personal expenses through the practice immediately — two clean fiscal years of financials will significantly reduce buyer price concession requests
• Pull your office lease and confirm remaining term and renewal options — a short lease with no clear renewal path will limit your buyer pool before you ever list
• Ask your dental CPA to prepare a preliminary EBITDA normalization so you understand your true profitability — most dentists are surprised by how much owner add-backs change the number

Questions to ask a broker

• How many dental practices have you sold in the last 24 months, and what was the average collections size?

  Confirms real transaction volume and whether their experience matches your practice's revenue range and complexity.

• How do you verify active patient count and hygiene recall compliance before presenting the practice to buyers?

  Active patient verification is the single most scrutinized metric — a broker who skips this step will face buyer pushback and deal delays.

• What is your buyer pool breakdown between associate dentists seeking SBA financing and DSO or group buyers?

  Determines whether the broker can reach the right buyer type for your goals, whether that's a clean exit or a DSO affiliation structure.

Broker red flags

• Broker cannot provide a dental-specific valuation methodology referencing EBITDA multiples, production-to-collections ratios, or active patient benchmarks.
• Engagement agreement requires exclusivity for more than 12 months with no performance milestones or early termination clause for the seller.
• Broker has no documented relationships with SBA lenders who have closed dental practice loans, critical for associate dentist buyers.