Purchasing a dental practice is not a single transaction but a process with several moving parts. While timelines vary, most purchases follow a predictable sequence. Understanding what happens at each stage helps buyers set realistic expectations and avoid unnecessary delays.
Typical Timeline for Buying a Dental Practice
From initial offer to closing, a dental practice purchase typically takes 2 to 4 months. Some deals move faster, while others take longer, depending on complexity, financing, and third-party involvement.
The timeline generally includes:
- Practice evaluation and offer
- Due diligence
- Financing and approvals
- Contract negotiation
- Closing and transition planning
Each phase plays a role in the deal’s overall pace.
The Offer and Letter of Intent Stage
Once a potential practice is identified, the buyer usually submits a letter of intent (LOI). This outlines the proposed purchase price and basic terms.
This stage may take:
- A few days to draft
- A couple of weeks to negotiate and finalize
Delays often occur when key terms are unclear or when expectations between buyer and seller are misaligned.
Due Diligence and Document Review
Due diligence is one of the most time-intensive phases. Buyers review financial records, contracts, compliance materials, and operational details.
This stage typically takes:
- Two to four weeks
- Longer if records are incomplete or disorganized
Common review items include leases, employment agreements, vendor contracts, and regulatory documentation. The more prepared the seller is, the smoother this phase tends to be.
Financing and Lender Requirements
If financing is involved, lender timelines become part of the equation. Banks and specialty lenders require documentation, valuations, and approvals.
Financing may take:
- Two to Four weeks
- Longer if underwriting raises questions or additional information is needed
Starting the financing process early can help prevent this stage from slowing the entire transaction.
Contract Drafting and Negotiation
Once due diligence and financing are underway, the purchase agreement and related documents are drafted and negotiated.
This phase often overlaps with financing and may take:
- Two to four weeks
- Longer if deal terms change significantly
Clear communication and timely responses help keep negotiations on track.
Regulatory and Third-Party Approvals
Some purchases require approvals beyond the buyer and seller. These may include landlord consent, licensing transfers, or payer notifications.
Timing depends on:
- Lease assignment or new lease approval
- State licensing requirements
- Insurance and credentialing processes
Third-party approvals can be challenging to control, making them a common source of delay.
Closing and Transition Planning
Closing occurs once all conditions are satisfied and documents are finalized. Funds are transferred, and ownership changes hands.
Transition planning may include:
- Staff communication
- Patient announcements
- Seller involvement after closing
A well-planned transition supports continuity and revenue stability.
What Can Slow Down the Process?
Several factors commonly extend timelines:
- Incomplete or inaccurate records
- Delays in financing approvals
- Lease or landlord issues
- Unresolved compliance concerns
Addressing these issues early reduces friction later.
Setting Realistic Expectations
While some dental practice purchases close quickly, most benefit from a deliberate pace. Rushing increases the risk of missed details and costly surprises. A clear understanding of the process helps buyers stay focused and make informed decisions as the transaction unfolds. That’s where Polished Legal steps in. Trust us to guide you through the process and achieve your objectives. Connect with us today.
