Your Comprehensive Dental Brokerage Solution

Our Buying Services

Purchasing a dental practice may seem daunting, but with our wealth of experience and expertise, we’re dedicated to facilitating a smooth and stress-free process for you.

When considering the purchase of a dental practice, you might find yourself pondering, ‘What suits me best? Should I acquire an established practice or initiate one from the ground up?’ Each option presents its own set of pros and cons, underscoring the importance of having a seasoned and expert dental brokerage team by your side to navigate the decision-making process.

As acquiring a dental practice is a significant endeavor — one that you may only undertake once in your lifetime — it’s crucial to collaborate with a brokerage team that boasts both extensive experience and a proven track record of success.

Headwaters Practice Transitions not only offers reassurance, but also delivers:

  • Understanding of the competitive landscape in medical or dental fields
  • Analysis of patient demographics in your desired location
  • Proficiency in evaluating dental practices to ascertain fair market value
  • Financial support for acquisitions and enhancements
  • Comprehensive expertise in real estate, legal, accounting and strategic aspects
  • Providing a comprehensive suite of transition services under one roof

As a nationwide brokerage operating in 38 states across the U.S., we offer numerous dental practice purchase opportunities spanning the country. Explore our listings of Practices for Sale to discover potential matches for your needs. If you have specific preferences or requirements, don’t hesitate to reach out to us directly to create your buyer profile. By doing so, you’ll gain priority access to newly available dental practices before they’re publicly marketed, ensuring you’re among the first to be informed.

Guide to Purchasing a Dental Practice


Collaborate with a seasoned broker

Partnering with a broker ensures you stay focused and efficiently utilize your time by navigating the process with expertise tailored to your needs.


Pre-qualify through a Secure bank

The bank evaluates your financial health, including net income, stress, and debt capacity, to establish key ratios and assess your creditworthiness.


Analyze dental practice

After pre-qualification, thoroughly analyze potential practices to gain comprehensive insights into their operations and market dynamics.


Issue a Letter of Intent (LOI)

Express your serious interest in a practice through a non-binding LOI, outlining your proposed terms and conditions for the transaction.


Present Your Offer

With bank pre-approval in hand, confidently submit your offer for the dental practice, noting that bank approval may be contingent on practice type.


Navigate Negotiations

Engage in negotiations with the seller until mutual agreement is reached on price, terms and closing details.


Undertake due diligence

Enter the due diligence phase, during which you and your advisors meticulously scrutinize the practice’s financials and operational aspects.


Finalize the asset purchase agreement

Draft and finalize the asset purchase agreement, encompassing all agreed-upon terms and conditions of the impending transaction.


Secure the dental practice loan

Once the asset purchase agreement is settled, proceed to complete the necessary paperwork to secure the dental practice loan.

Securing Finances When Purchasing a Dental Practice

The initial phase of the loan procedure involves obtaining pre-qualification. Subsequently, you can commence the process of identifying suitable dental practices that align with your location, size and specific requirements.

Once you pinpoint an opportunity, you’ll undergo the underwriting process with the bank, which is often lengthy and intricate. During this phase, you’ll be required to furnish a substantial amount of information and evidence demonstrating your financial capability to support the impending transaction. Please bear in mind that the duration of this process can vary, spanning from several weeks to several months. Additionally, it’s customary for the broker to coordinate with the seller to obtain necessary documents, alleviating this burden from you. At Headwaters, we strive to streamline this process, saving you valuable time, headaches, and potentially money.

Upon receiving the funding decision, a closing date will be scheduled, followed by the disbursement of funds for the dental practice and the finalization of the deal. It’s crucial to select the right bank for your needs, which may not always be the one offering the lowest interest rate. While the interest rate is an important factor, other significant considerations include the loan term, the bank’s specialization in dental practice lending, and their reputation.

When making such a substantial investment — whether in a new or existing practice — the primary focus should be on the return on investment (ROI). When calculating your ROI, it’s essential to factor in the time value of money. According to the time value of money theory, a dollar available today holds more value than the expectation of receiving a dollar in the future. Furthermore, it’s essential to consider the opportunity cost associated with these decisions.

Selecting Your Team of Advisors:

The initial and arguably pivotal task for every buyer, particularly those new to the process, is to assemble your advisory team. It’s crucial not to hastily settle for the first candidate you encounter for each role outlined below.

Instead, take the time to consult with several options to discern the unique offerings of each company or individual. Subsequently, make a decision based on who you feel most at ease with, rather than solely focusing on the cost of their services. If you require any referrals or suggestions, don’t hesitate to contact Headwaters, or delve into further details on forming your advisory team via the following link: insert blog post link



Insurance Agents

Marketing Agency


Practice Consultant

Technology Advisor

Establishing a Dental Practice

The typical startup costs for a dental practice amount to around $500,000, encompassing both initial loans and capital. Given the average dental student’s debt nearing $500,000, many face a daunting $1 million in debt before even beginning to serve patients.

In light of this financial landscape, it’s prudent to engage a consultant to navigate your acquisition journey, whether you’re launching a dental practice from scratch or acquiring an existing one. At Headwaters, we specialize in guiding you through this process, mitigating potential costly missteps and ensuring a smoother path forward.

In most scenarios, we advocate for purchasing an established dental practice over starting one anew due to the typically higher ROI. It’s essential to prioritize servicing your student loan debt, making the acquisition of an existing practice a potentially more advantageous option.

While dental office failure rates are low at 0.3%, not all practices operate at their maximum profitability or offer fair purchase terms for both parties involved. Collaborating with a seasoned dentist broker can significantly enhance the success of your practice acquisition endeavor.

How Do You Value a Dental Practice?

When a practice catches your interest, the next step is determining the appropriate valuation for the dental practice. This begins with obtaining the dental practice prospectus, a concise document encapsulating the essence of the dental practice typically spanning around 20 pages.

How to Understand a Dental Practice Prospectus

Information included

  • Overview of the dental practice
  • Doctor’s biography
  • Area demographics
  • Dental procedures offered
  • Location and facility details
  • Equipment inventory
  • Analysis of active and new patients
  • Financial data
  • Visual documentation of the practice
  • Procedure evaluations
  • Staff profiles

Key Components:

  • Facility details and location
  • Patient base & demographic information
  • Range of procedures offered
  • Total revenue generated
  • Anticipated net income
  • Capital expenditure projections

Key Points of a Dental Practice Prospectus

The Significance of Location

An in-depth examination of the competitive landscape and demographics surrounding a dental practice’s location is paramount, as it directly impacts future profitability and the overall value of the practice. It’s crucial to recognize that just because a dental practice is situated in a trendy or burgeoning area doesn’t necessarily guarantee it’s the ideal location for your practice.

Typically, dental practices located in urban and suburban settings command higher valuations compared to those in rural locales. However, practices in rural areas often boast higher cash flow. Dental practices nestled within highly sought-after communities such as Malibu, Manhattan or Miami Beach may have elevated values, but they also come with higher operational expenses.

Competitive Terrain

Analyze your competition and their operations within the region under consideration. Are they providing similar services to yours? How entrenched are existing dental practices? What sets your offering apart? A critical aspect of competition lies in comprehending your counterparts and articulating how your dental practice will deliver superior value or benefits to the local clientele.

Area Characteristics

Ensure thorough scrutiny of the demographic landscape surrounding your prospective dental practice. Assess factors such as population dynamics — particularly growth patterns — age distribution, income levels, occupational profiles prevalent in the area, average educational attainment, ethnic composition of the populace and the congruence of neighborhood lifestyle with the ethos of your dental practice. Evaluating these aspects is imperative when delving into the demographic data presented within a dental practice prospectus.

Growing a Dental Practice

When considering the purchase of an established dental practice, it’s advisable to thoroughly assess its current status. While reviewing the prospectus and financial documents, ascertain whether the practice is experiencing growth or decline. Reflect on the implications this has for the specific niche practice you intend to acquire. Determine if additional investments in marketing, operational expenses, and other factors may be necessary based on this evaluation.

Headwaters is available to aid you in comprehending a dental practice prospectus thoroughly, guiding you through each section to ensure you’re well-equipped to make a knowledgeable decision.

From the outset of your search to the final stages of closing, Headwaters is here to assist you every step of the way.

As one of the top dental practice brokerages in the country, we possess the expertise and insight necessary to support you from your initial exploration through securing your loan, all the way to the closing – and beyond! Our goal is to collaborate with you to guarantee a seamless and triumphant transition process.

When assessing your loan repayment plan, bear in mind the tax benefits associated with interest payments. Similar to mortgage payments, the interest expenses incurred on a loan are typically tax-deductible annually. Opting for a longer-term loan with lower payments can sometimes bolster the cash flow of the practice, serving as a form of insurance for the buyer.

It’s prudent to explore avenues to maximize the tax advantages of purchasing a practice. Section 179 offers various benefits that can be leveraged. While all assets depreciate over time, the Section 179 Depreciation Schedule allows you to depreciate all assets up to a certain amount in the first year, often resulting in no taxes being owed that year. For further details, consult your Headwaters team.

Create Your Personal Buyer Profile with Headwaters Practice Transitions