How Much Does It Cost To Buy An Existing Dental Practice

Are you a fresher from dental school or working for some years as an associate? Well, then it’s a perfect time for you to buy a dental practice. But if you are willing to set up on your own, it’s about a huge cost. 

So, as an alternative, you can buy an existing dental practice. Hence, you must know how much it costs to buy an existing dental practice.

Well, there is nothing like the exact cost of dental practice. A number of charges, as well as fees, are also included with the cost, such as Solicitor’s fees, Bank and Accountancy fees, Bank Solicitors, etc.

You know there are a number of facts that determine the cost of buying an existing dental practice. But to some extent, you must have 500,000 USD as an initial budget.   

We will cover the overall cost throughout the whole article.

Why Should You Buy An Existing Dental Practice?

As a fresher, you may dream of starting your own dental practice. And, there is nothing wrong with your dream.

But you have to know, if you are willing to start from scratch, you will need a proper financial plan and support. And, having such ability as a beginner is nearly impossible.

Besides, there are a number of advantages to buying an existing dental practice. First of all, it helps you to work with some experienced staff. Also, the profit, as well as loss statement, is also a good approach to improve your chances of getting a loan.

Moreover, the existing dental practice will help you by decreasing the time that you will need to spend in case of getting a patient. Again, you will benefit from the existing payroll and billing system.  Aren’t these advantages enough for you to buy an existing dental practice!

You can even have an already ranked website with existing dental practices. Thing is that you may not like the website. Nothing to worry about? You can redesign it. You can visit which may help you to redesign your dental website at an affordable price- 

What Needs to Consider While Buying a Dental Practice?

To buy an existing dental practice seems to be overwhelming, exciting, as well as, a little bit mystifying. If you are thinking to buy a dental practice, then it’s wise to consider the following factors before buying-

The number of active patients:

There are many cases where the buyers don’t get the things that have been presented. So, it’s better to verify on your own. With the help of practice management software, you can easily confirm the patient count. 

Prepare a budget:

Making a budget is a wise decision before buying anything. And, according to your budget, you can choose and buy the dental practice along with a number of advantages. 

Location of the practice:

Choosing a perfect location is an important factor. You need to choose such areas where you can easily get patient. Also, it’s better if the location is near your town. It’s mandatory to know every detail of that particular location.

Value of the existing staff:

As you are buying an existing dental practice, you shouldn’t forget that you are also getting other support staff, for example- billing staff, hygienists, and so on. These professionals can share their institutional knowledge which is invaluable to long-term success.

Investigate the practice:

Before conforming, you should take some time, to think as well as investigate the practice whether it’s the right investment or not. You can also take advice from professionals in dental practice financing and valuation. They will help you by reviewing tax returns, financial statements, as well as other records.

Whether has a website:

You should also check whether the practice contains any built-in website or not. If you find one, you can redesign it. Otherwise,  you can also design a website at an affordable price. In that case, the can help you-

Negotiate the price:

When you buy a practice, the financial offer is just one of several aspects that should be agreed upon. There also remain different aspects such as transition details, staff, property, equipment considerations, and so on. That’s why negotiating the price is really essential.

How Much Does It Cost To Buy An Existing Dental Practice?

Well, there is not an exact answer to this question. But if you want to figure out the cost, as a buyer, you can employ the EBITDA (Earnings Before Interest Taxation Depreciation Amortisation) rule. It is one of the simplest ways to measure the profit of any dental practice. 

The value of this rule determines the profitability of the dental practice. Besides, there are various considerations on which the cost depends. Such as-

Purchase Price:

The purchase price might not be what it appears to be from the buyer’s perspective. The money spent on the procedure is simply the start of the true expense. Knowing these things will help you start budgeting and will give you a much more realistic idea of whatever you can afford as well as how much you’ll have to borrow.


It’s basically an approximation that determines how much a particular dental practice is worth. Income-based valuation, market-based valuation, and net asset valuation are some common methods of valuation. 

Unexpected Overhead:

Sometimes equipment breaks and also the staff need to be paid. So, it’s possible that operational budgets won’t be streamlined. However, a comprehensive examination of recent budgets might assist you in planning, always leaving room for unexpected costs.

Patient Transitioning:

Most people find it difficult to accept change, particularly when it’s about their health care. Some people may stop practicing completely. Set the budget for a decrease in the number of patients and come up with a strategy for effectively getting new patients.

Inherited Staff:

You have really no way of knowing how the staff functions on a day-to-day basis until you buy the practice. Staff employees are human individuals with messy lives, from family problems to professional feuds.

Be conscious that workplace productivity can never be as great as it appears on paper, and avoid scheduling over 80% of each person’s day.

Final Words:

So, we have come to the end of our article on “how much does it cost to buy an existing dental practice”. Well, as you see, there are a number of factors that may interfere while you are going to buy a dental practice. That’s why there is not an exact answer to this question. 

But you can follow the guidelines provided while buying an existing dental practice. It will help you to choose the perfect dental practice with maximum profit within your budget.

For any further queries, feel free to ask. We would love to help you. Till then, best of luck!

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