Buy a Dental Practice the Right Way — Due Diligence, Financing, and Tax Strategy
Thinking about how to Buy a Practice? Our dental practice consulting services make the process easier and less stressful. We guide you through each step, from finding the right practice to handling the financial details, so you can make a smart investment with confidence.
If you’re looking to buy a dental practice and...
You’re unsure if the asking price is fair
You’re wondering if there are red flags in the tax returns & financials
You don’t know if the staff & overhead costs are reasonable
You’re curious how to structure the purchase for tax benefits
You don’t know the right questions to ask your broker or attorney
We help dentists plan for, purchase, and run a profitable dental practice
From the first conversation with a broker to the day you take over the chair, we are with you at every stage — reviewing financials, modelling projections, advising on purchase structure, and making sure you are not paying more than the practice is worth or missing tax advantages that are much easier to catch before closing than after.
Due Diligence & Review
We review the seller's last three years of tax returns, profit and loss statements, overhead ratios, production by provider, and patient retention metrics. We identify discrepancies between reported income and actual cash flow, flag unusual expense patterns, and give you a clear picture of what the practice actually earns — not just what the asking price implies.
Lending & Financing Support
We work daily with dental-specific lenders and know what each institution looks for in a borrower. We help you prepare the financial documentation required for approval, model your debt service coverage at different loan amounts, and position your application to give you the best chance at favourable terms. Most dental practice acquisitions are fully financed — getting the right loan structure matters from day one.
Structure Your Purchase to Maximize Tax Benefits
How a practice acquisition is structured — asset sale versus stock sale, allocation of the purchase price across equipment, goodwill, non-compete agreements, and supplies — has a significant impact on your first-year and long-term tax liability. We model both scenarios, explain the trade-offs, and recommend the structure that minimises your total tax cost over the life of the investment.
Project & Forecast 5-10 Years Financial Plans
Every year, we review hundreds of dental practices across specialties, markets, and price ranges. That volume of exposure means we recognise the difference between a fairly priced opportunity and one that is priced for the seller's benefit — and we tell you which one you are looking at.
We’ve been helping dentists buy practices for more than 10 years
We review hundreds of dental practices each year, giving us a broad perspective on the market for those looking to Buy a Practice. You can also use our dental Valuation Calculator to get a better understanding of a practice’s worth.
We See Hundreds of Dental Practices Each Year
Every year, we review hundreds of dental practices across specialties, markets, and price ranges. That volume of exposure means we recognise the difference between a fairly priced opportunity and one that is priced for the seller's benefit — and we tell you which one you are looking at.
We Work Daily With Dental Attorneys, Brokers, & Bankers
We work daily with a network of dental attorneys, brokers, and bankers to provide comprehensive support. This teamwork ensures that you have all the resources you need to make your practice a success.
We Successfully Helped Dentists Grow From Start Up to Multi-Practice
Many of our clients bought their first practice with our help and are now managing multiple locations. We stay with clients through every acquisition — each one builds on the financial foundation and experience of the last, and our model of the original practice informs every subsequent deal.
Start with a Dental Practice Purchase Consult
Buying a dental practice is one of the biggest investments you’ll make in your life. We’re here to help you navigate the process smoothly and make confident decisions every step of the way, ensuring your Buy a Practice journey is successful.
- Personal Consultation: We'll schedule a call to discuss your practice purchase opportunity.
- Pros and Cons Analysis: We'll review the advantages and disadvantages of the practice.
- Simple Guidance: Get clear advice to help you make smart choices.
Dont’s just take our word for it.
Hear directly from our hundreds of happy clients and see how Virjee Consulting has made a difference in their practices.
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. Check out our latest YouTube videos!
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How to Create a Dental Practice Budget for 2025
As we kick off 2025, it’s the perfect time to build a strong financial foundation for your dental practice. Whether you’re running a brand-new office or managing an established practice, budgeting is key to profitability and long-term success. In this video, we’re walking through how to create a dental practice budget for 2025—breaking down the...
Maximize Your Profits With The Leading Dental CPAs
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Buying a Dental Practice: What the Listing Doesn't Tell You
Most dental practice listings show topline numbers: collections, production, room count, years in operation, asking price. The numbers that determine whether a buyer makes money are not on the listing. AR aging, payor mix, fee schedule age, recall reappointment rate, treatment plan acceptance, owner-dependent production, lease structure, equipment age, and the demographic trajectory of the surrounding zip code. A dental CPA running the diligence asks these questions before the offer goes in, not after.
What's a Reasonable Multiple for a Dental Practice?
General dental practices typically sell at 65 to 85 percent of trailing twelve-month collections, depending on profitability, location, payor mix, and growth trajectory. Higher-margin practices with strong fee-for-service patient bases and stable cash flow trend toward the top of the range. Practices heavily dependent on the selling dentist's personal production sell at the bottom. Specialty practices (orthodontic, periodontal, pediatric, oral surgery) often sell at higher multiples on EBITDA basis (4 to 8 times) rather than collections percentage. The right multiple depends on what the buyer is actually buying.
What Should a Dental Practice Buyer Look For in Diligence?
Six diligence categories matter most. First, accurate collections (not just production), verified against bank deposits over 12 to 24 months. Second, fee schedule age and major-payor contract terms; a 5-year-old PPO fee schedule is a hidden margin loss waiting to surface. Third, AR over 90 days as a percentage of monthly production. Fourth, owner-doctor production as a percentage of total; a practice where the seller produces 70 percent of the dentistry leaves a major production gap when the seller walks. Fifth, equipment age and immediate capital expenditure. Sixth, the lease: term remaining, rent escalation, transferability, and renewal options.
How Should a Dental Practice Purchase Be Structured?
Most dental practice purchases are structured as asset sales, not stock sales. The buyer purchases the practice's tangible assets (equipment, supplies, leasehold improvements) and intangible assets (patient records, goodwill). The asset purchase price gets allocated across categories for tax purposes: tangible equipment depreciates faster than goodwill amortizes, so the allocation has real tax consequences. The IRS Form 8594 documents the allocation. Both buyer and seller file the same allocation, and it has to be negotiated as part of the purchase agreement.
How Is a Dental Practice Purchase Financed?
SBA 7(a) loans are the most common financing path for dental practice acquisitions under $5 million. Terms typically run 10 years on the practice value plus the buyer's working capital, with the real estate (if included) on a longer 25-year term. The buyer usually puts 10 to 15 percent down. Conventional bank financing is available to buyers with strong credit and existing banking relationships, sometimes at better terms than SBA. Seller financing of 10 to 20 percent of purchase price is common, often structured as a note paid out over 3 to 5 years.
What Does the Tax Side of Buying a Dental Practice Look Like?
The tax side starts with the asset allocation in the purchase agreement and runs through the buyer's entity setup, the financing structure, the Section 179 election on the equipment piece, the goodwill amortization schedule, the seller note tax treatment, and the buyer's S-corp election on the new entity. None of this is set up at closing if the buyer is not working with a dental CPA. The cost of fixing it after closing is meaningfully higher than getting it right in the purchase agreement.
Related Virjee Dental Services
Dentists buying a practice through Virjee typically also engage our dental CFO services for diligence and post-close performance reporting, our dentist tax services for the entity setup and allocation work, and our dental bookkeeping services to start the new practice with a clean monthly close. Use the dental practice valuation calculator as the starting point on any practice you're considering.