If you’ve ever thought, “Buying a practice has to be easier than starting one,” this episode might change your mind.
I’ve spent two decades helping dentists open and buy practices, and I’ve seen what happens when acquisitions go wrong. On paper, buying seems simple: the patients are already there, the equipment is in place, and you walk right into ownership. But what many first-time buyers discover is that those “ready-to-go” practices often come with invisible baggage.
Let’s talk about some of the biggest traps I see and how to sidestep them.
- Overpaying for the Practice
Most dentists rely on a broker’s valuation, but here’s the catch: brokers work for the seller. Their job is to get the highest price possible. Before you sign anything, get an independent cash flow analysis. Don’t just look at top-line revenue, look at profit and true owner earnings.
- Ignoring the Financial Story
Sellers sometimes polish their books in the last year or two before retirement, the “free-agency” years. If numbers suddenly spike, ask why. Look at at least three years of tax returns and P&Ls to find the real picture.
- Buying the Wrong Demographics
Aging patients, low new-patient flow, or a fee-for-service model in a PPO-heavy area can sink your long-term vision. The practice has to fit who you are as a clinician and leader.
- No Transition Strategy
You can’t just flip the sign and expect loyalty to transfer. Patients and teams need communication, structure, and time. Plan out your patient messaging, team introduction, and rebranding before day one.
- Overlooking Legal and Lease Issues
A bad lease or missing non-compete can derail your deal. Always use a dental-specific attorney. This isn’t the place to save a few bucks with your cousin who does real estate closings.
- Letting Emotion Lead the Deal
Acquisitions get emotional for both sides. Sellers often overvalue their “legacy,” and buyers rush to make it work. Take emotion out of the equation. Build your team of experts and stick to data.
Ownership should give you freedom, not more stress. Whether you buy or build, success starts with clarity.
🎧 Listen to the full episode of The Startup Dentist Podcast to learn how to protect yourself and build a practice you love from day one.