Buying a dental practice is a major professional and financial decision. The questions you ask before signing a purchase agreement can reveal risks, clarify value, and help ensure a smooth transition to ownership. A thoughtful review early on helps you understand what you are buying and what responsibilities come with it.
What Does the Practice’s Financial History Really Show?
Start with a clear picture of how the practice performs today. Production and collections tell different stories, and both matter. Ask for at least three years of financial records and look beyond headline numbers.
Key points to review include:
- Trends in revenue and expenses
- Adjustments for owner compensation and one-time costs
- Hygiene production versus doctor production
- Payer mix and reimbursement patterns
Understanding where income comes from and how stable it is helps you evaluate whether the purchase price reflects the true value.
What Is Included in the Sale, and What Is Not?
Not every asset transfers automatically with a practice sale. Equipment, technology, supplies, and even the practice name may be treated differently depending on the deal structure.
You should ask:
- Which assets are included in the purchase price
- Whether any equipment is leased rather than owned
- If software licenses and service contracts can be assigned
- What happens to accounts receivable
Clear answers here prevent surprises after closing.
Are There Existing Contracts or Obligations?
Many dental practices operate under multiple contracts that continue after the sale. These can affect both cash flow and operational flexibility.
Important agreements to review include:
- Office lease terms and renewal options
- Employment agreements with associates or key staff
- Vendor and laboratory contracts
- Participation agreements with insurers
Knowing what you are stepping into allows you to plan changes realistically, not reactively.
How Stable Is the Patient Base?
A strong patient base supports continuity, but it is worth understanding how that base was built and how dependent it is on the selling dentist.
- How new patients are acquired
- How many patients are active versus inactive
- Whether key referral relationships exist
- What transition plan is in place for patient retention
These factors affect how quickly the practice stabilizes under new ownership.
What Compliance or Regulatory Issues Should Be Addressed?
Dental practices must comply with a range of legal and regulatory requirements. Issues in this area may not be evident without a closer look.
Ask whether:
- The practice has faced audits or complaints
- Licensing, permits, and registrations are current
- OSHA and HIPAA protocols are documented and followed
- Any disputes or investigations are pending
Identifying compliance concerns early allows them to be addressed before they become your responsibility.
How Will the Transition Be Handled?
A smooth transition benefits staff, patients, and the new owner. The seller’s role after closing should be clearly defined.
Questions to raise include:
- Whether the seller will stay on temporarily
- How staff communication will be handled
- What training or support is included
- How patient introductions will occur
Transition terms can influence both morale and revenue during the early months.
What Is the Exit Plan for You?
Even at the buying stage, it helps to think ahead. Understanding how a practice could be sold or expanded in the future informs today’s decisions.
You may want to ask:
- Whether the practice model supports growth
- If the location limits future expansion
- How transferable goodwill is likely to be
- What factors could affect resale value
This perspective keeps the purchase aligned with long-term goals.
Making Informed Decisions Before You Commit
Buying a dental practice involves more than agreeing on a price. The right questions help you see the whole picture, manage risk, and move forward with confidence. Before finalizing a purchase, it is worth having an experienced attorney review each aspect of the deal so expectations are clear and the path to ownership is well defined.
