How Long Does It Take to Buy a Dental Practice? The Steps, in Order
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How long does it take to buy a dental practice? The steps, in order
Buying a dental practice is a sequence of stages, and each one depends on the last. The total time varies widely with how long the search takes, how organized the seller is and how quickly financing comes together. Knowing the order helps you plan, and helps you spot which step is holding things up.
The stages at a glance
| Stage | What happens | Who is involved |
|---|---|---|
| 1. Get ready | Decide what you want, check your finances, talk to a lender | You, a lender, a CPA |
| 2. Search | Find practices that fit, listed and unlisted | You, brokers, market data |
| 3. Screen | Compare practices and markets before going deep | You, market analysis |
| 4. Letter of intent | Agree on price and key terms, non-binding | You, your attorney, the seller |
| 5. Due diligence | Verify financials, patients, staff, lease and market | CPA, attorney, appraiser, lender |
| 6. Financing | Lender approves the loan | Lender |
| 7. Purchase agreement and lease | Final contracts, lease assignment | Attorneys, landlord |
| 8. Closing | Funds move, ownership transfers | Attorneys, lender |
| 9. Transition | Seller introduces you, you take over | You, the seller, the staff |
1. Get ready
Before you look at a single listing, decide what you are looking for: general or specialty, size, region, fee-for-service or PPO, and how far you are willing to move. Talk to a lender about what you can borrow and what they need from you. A dental CPA can help you understand what a practice needs to earn to support the loan and your living costs.
2. Search
Listings are spread across many broker websites, and some of the best practices never get listed at all. Search both:
- How to compare dental practices for sale across brokers
- How to find a dental practice to buy that isn't listed
3. Screen before you go deep
Appraisals and attorneys cost money, so narrow the list first. For each candidate, check the market around it: residents per general practice within a short drive, household income, population growth and recent openings nearby. A practice in a crowding or shrinking area deserves more caution before you spend on due diligence.
See buying in a crowded market vs an underserved one.
4. Letter of intent
The letter of intent sets the price, what is included, the length of due diligence, the seller's transition period and the non-compete. It is usually non-binding, but it frames everything that follows. Have a dental attorney review it.
5. Due diligence
This is where you confirm the practice is what it appears to be. It often takes the longest, because it depends on the seller producing documents. Use a due diligence checklist so nothing is missed.
6. Financing
Lenders typically want the practice's financials, your personal finances, the purchase agreement draft and the lease. Starting the conversation early, in step 1, avoids delays here.
7. Purchase agreement and lease
Attorneys turn the letter of intent into the final purchase agreement. At the same time, the landlord must agree to assign the lease or sign a new one. Landlord consent is a common source of delay, so raise it early.
8. Closing
Funds transfer and ownership changes hands. Make sure licenses, insurance, payer contracts and software accounts are lined up for your first day.
9. Transition
The weeks after closing decide how many patients stay. A seller who introduces you, staff who stay on, and a clear letter to patients all help. See how to keep a practice's patients after you buy it.
What slows a purchase down?
- A seller slow to provide financial documents.
- A landlord slow to consent to the lease assignment.
- Financing that starts late.
- Surprises in due diligence that reopen the price.
- Searching without a clear idea of what you want.
Frequently asked questions
What is the longest step in buying a dental practice? Usually the search, and then due diligence. Both depend on things outside your control: what is for sale, and how quickly the seller provides documents.
Can I speed it up? Get pre-qualified with a lender early, line up a dental attorney and CPA before you need them, and screen practices by market before you spend on appraisals.
Where does Dentagraphics fit in the timeline? In the search and screening stages: listings from many brokers in one place, owner and practice data for unlisted practices, and market analysis of each candidate. Dentagraphics does not broker or appraise practices.
How Dentagraphics helps
- Start/Buy membership ($149 per month): listings from many brokers in one place, unlimited address and area searches, and tools to find practices that are not listed.
- Practice Mailers: send handwritten letters to owners who might sell.
- Single-Site Study ($695): handwritten analysis by a demographer of the market around a practice you are considering.
Our competition data covers 118,330 US dental practices verified by hand. We do not broker practices and hold no stake in any location.
Starting your search? See a free sample report to see how we size up a practice's market, or create a free account to start screening areas today.