Buying a Practice FAQ
Purchasing a dental practice is one of the most significant decisions you'll make in your career. It combines professional, financial, and personal considerations, and every practice presents different opportunities and challenges.
The questions below address many of the topics commonly raised by dentists considering practice ownership.
Before You Buy
How important is practice culture?
Practice culture influences the experience of both patients and the dental team. Consider staff turnover, workplace culture, patient relationships, and the overall reputation of the practice within the community.
Before purchasing a practice, consider:
- the practice philosophy
- relationships among team members
- patient demographics
- reputation within the community
- leadership style
- opportunities for future growth
Remember that while you can shape a practice over time, significant changes should generally be introduced gradually to support a smooth transition for staff and patients.
What type of practice is right for me?
Practice ownership can take many forms, including:
- sole ownership
- partnership
- group practice
- cost-sharing arrangements
Each model offers different levels of autonomy, financial risk, collaboration, and administrative responsibility.
If you're considering a partnership or shared ownership arrangement, ensure expectations, responsibilities, and exit strategies are clearly documented in a legal agreement before moving forward.
Where should I practice?
Location influences nearly every aspect of practice ownership, including patient demand, practice value, competition, lifestyle, and future growth.
When evaluating a community, consider:
- where you want to live long-term
- proximity to family and support networks
- employment opportunities for your partner or spouse
- schools and community amenities
- commute time
- opportunities for professional growth
Urban, suburban, and rural communities each offer different advantages. The right location depends on both your professional goals and personal priorities. Consider the patient population, community needs, and the type of practice you hope to build.
Should I buy a practice immediately after graduation?
Practice ownership can occur at any stage of a career, but many dentists choose to spend time as associates before purchasing a practice. Working as an associate provides opportunities to strengthen clinical skills, gain confidence, learn the business side of dentistry, and better understand the type of practice they eventually hope to own.
Is practice ownership right for me?
Owning a practice offers greater independence and the opportunity to shape the patient experience, build a team, and make both clinical and business decisions. It also brings additional responsibilities, including managing staff, finances, technology, regulatory compliance, and day-to-day operations.
Before purchasing a practice, consider your long-term professional goals, financial situation, lifestyle, and readiness to take on the responsibilities of business ownership.
Finding a Practice
Who should be on my advisory team?
Purchasing a dental practice involves financial, legal, and operational considerations. Most buyers benefit from assembling a team that includes:
- an accountant with experience in dental practices
- a lawyer experienced in dental practice transitions
- a financial institution familiar with dental practice financing
- a practice broker or transition advisor
- a financial advisor, where appropriate
Experienced advisors can help identify potential risks, review agreements, evaluate financing, and guide you through the purchase process.
How do I find the right practice?
Many practices change hands through professional networks before they are publicly advertised.
Useful resources include:
- dental practice brokers
- provincial dental associations
- colleagues and mentors
- dental suppliers and industry representatives
- practice transition specialists
- professional colleagues
Having a clear idea of your preferred location, practice size, and career goals can help focus your search.
Evaluating a Practice
What should I know about the lease or building?
If the practice operates in leased premises, have the lease reviewed by a lawyer experienced in commercial real estate and dental practice transitions.
Key considerations include:
- lease term
- renewal options
- assignment provisions
- exclusivity clauses
- relocation or demolition provisions
- future occupancy costs
If the building is owned by the selling dentist, discuss whether there may be opportunities to purchase the property now or in the future.
How important are equipment and technology?
As part of your due diligence, evaluate the condition of the practice's equipment and technology.
Older equipment is not necessarily a concern if it has been properly maintained. However, you should understand whether significant upgrades or renovations may be required in the near future and factor those costs into your decision.
How do I know if a practice has growth potential?
Consider questions such as:
- Is the patient base stable or growing?
- Are new patients joining the practice regularly?
- Are there opportunities to expand services?
- Is there room for additional operatories or longer office hours?
- Does the surrounding community continue to grow?
- Are there opportunities to introduce additional services?
Growth opportunities vary significantly between practices and communities.
Why is the practice being sold?
Practices may be sold for many reasons, including retirement, career changes, relocation, or personal circumstances.
Rather than focusing solely on why the practice is for sale, evaluate whether it aligns with your own professional goals and whether the business is well positioned for future success.
Why is practice valuation important?
A professional practice valuation helps determine the fair market value of a dental practice and is an important part of the purchase process.
Valuations consider factors such as financial performance, assets, goodwill, patient base, and market conditions.
Review the valuation carefully with your accountant or advisor to understand how it was prepared and whether it reflects the practice's strengths, risks, and future opportunities.
What should I look for when evaluating a practice?
Every practice is different, but key areas to review include:
- patient demographics
- number of active patients
- new patient flow
- hygiene program
- services provided and services referred elsewhere
- financial performance
- staffing
- equipment and technology
- opportunities for future growth
A successful purchase depends on understanding both the current performance of the practice and its long-term potential.
Financial Considerations
How do I evaluate the financial health of a practice?
Financial due diligence should include reviewing:
- revenue and expenses
- cash flow
- accounts receivable
- patient retention
- the strength of the hygiene and preventive care program
- staffing costs
- opportunities for future growth
Rather than focusing on any single metric, consider the overall financial picture and whether the practice can support both your personal income and future investment.
How should I prepare financially?
Practice ownership often follows several years of associateship, allowing dentists to gain experience, reduce educational debt, and build financial stability before purchasing a practice.
Before proceeding, understand:
- your personal financial obligations
- financing options
- expected cash flow
- operating expenses
- your ability to manage both personal and business debt
An accountant and financial advisor can help you evaluate whether a purchase fits your long-term financial goals.
Transitioning to Ownership
What if the practice already has associates or staff?
Before purchasing a practice, review:
- existing employment agreements
- associate agreements
- compensation arrangements
- years of service
- responsibilities
- transition plans
Understanding the existing team can help support a smoother ownership transition and identify any legal or operational considerations that should be addressed before closing.
Should I rebrand the practice immediately?
Not necessarily.
Many buyers choose to delay significant branding, operational, or staffing changes during the transition period. Gradual change often helps patients and employees adjust more comfortably while maintaining trust in the practice.
What makes a successful transition?
The first year of ownership is often a period of adjustment for both the new owner and existing patients.
Whenever possible:
- maintain continuity of care
- introduce changes gradually
- communicate openly with staff
- build relationships with patients
- preserve the strengths of the existing practice while identifying opportunities for future improvements
In some cases, the previous owner may remain for a transition period, helping introduce patients to the new dentist and supporting continuity of care.
Legal and Regulatory Considerations
Should I seek professional advice before purchasing a practice?
Yes.
Purchasing a dental practice involves significant financial and legal commitments. Independent advice from experienced professionals can help you understand the purchase agreement, identify potential risks, and make informed decisions throughout the process.
What due diligence should I complete before purchasing?
Due diligence helps confirm that the practice operates as represented and identifies any potential risks before the purchase is finalized.
This may include reviewing:
- financial records
- patient and production reports
- equipment and facility condition
- employment agreements
- leases
- regulatory compliance
- insurance arrangements
- health and safety documentation
- outstanding legal or contractual obligations
Your professional advisors can help determine which reviews are appropriate for your specific circumstances.
What legal responsibilities come with practice ownership?
Practice owners must meet the professional standards established by their provincial or territorial dental regulatory authority while also complying with applicable business, employment, privacy, health and safety, tax, and accessibility requirements.
Professional legal and accounting advice is strongly recommended before completing any purchase.
Looking Ahead
Practice ownership can be a rewarding career path, offering opportunities to build lasting patient relationships, lead a team, and shape the future of your practice.
Taking the time to research opportunities, assemble experienced advisors, and complete thorough due diligence will help you make informed decisions and build a strong foundation for long-term success.
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Frequently asked questions
Find answers to some of the most common questions about oral health, dental treatments, and more.
Do I really have to go to the dentist every six months?
How often you go for dental exams depends on your oral health needs. The goal is to catch small problems early. For many people, this means a dental exam every six months. Your dentist may suggest that you visit more or less often depending on how well you care for your teeth and gums, problems you have that need to be checked or treated, how fast tartar builds up on your teeth, and so on.
Ask yourself the following questions:
- Do I floss every day?
- Do I brush twice a day with a fluoride toothpaste and follow my dentist's instructions on how to brush properly?
- Do I eat a well-balanced diet, including food from all food groups, and limit sweets and sticky foods?
- Do I smoke?
- Do I have a history of cavities or gum disease?
- Is my overall health good?
The answers to these questions are all factors that affect your oral health. They will help you and your dentist decide how often you need to visit for dental exams. It's worth noting that you should not determine your need for dental care on what your dental plan covers.
Do I need x-rays at each visit?
How often you need to have x-rays also depends on your oral health. A healthy adult who has not had cavities or other problems for a couple of years probably won't need x-rays at every appointment. If your dental situation is less stable and your dentist is monitoring your progress, you may require more frequent x-rays.
If you are not sure why a particular x-ray is being taken, ask your dentist. Remember that dental x-rays deliver very little radiation; they are a vital tool for your dentist to ensure that small problems don't develop into bigger ones.
Related Resources
I want to find a new dentist. How can I find a Dentist, and how can I get my records transferred?
The first step in choosing a new dentist is to list your needs, which might include:
- Location
- Hours of practice
- Language(s) spoken
- Generalist or specialist practice
- Asking your family and friends if they can recommend a dentist. Other members of your community, such as your doctor, may be able to offer suggestions. Some provincial dental associations have Web sites that allow you to search for a dentist in your area (see "Other Resources" below).
Yellow Pages advertising may also prove helpful. It will list each dentist's location, and may include other details that will help you in your search.
Once you have narrowed your list to two or three names, call the dentists to see if they are accepting new patients. This initial call may also give you some sense of the office environment, but there's nothing like the first visit to help you decide if it's a good match for you.
How can I get my records transferred?
Original dental records belong to the dentist who provided the treatment, and not the patient, because dentists have to keep all of their records for a period of time, as set out by their provincial dental regulatory body. Once you have selected a new dentist, you can request that a copy of your records be transferred from your former dentist.
You may be required to sign a release form from your former dental office and you may also be charged an administrative fee for having your records copied and sent to another dental office. If you have questions about the records transfer process in your province, ask your dentist or contact the provincial dental regulatory body.
Other Resources
Provincial Regulatory Authorities and Provincial Associations
Does my dentist need to wear gloves and a mask, and how do I know he or she is using clean tools?
Your health is very important to your dentist. One of the ways that your dentist helps you stay healthy is by preventing the spread of germs. One of the best ways to do this is to use barrier protection such as gloves and masks.
Your dentist and other dental team members also wash their hands regularly. In addition, they sterilize equipment used in the dental office and clean the furniture and fixtures in the examining rooms. This system is referred to as "standard precautions." It means that every patient is treated in the same way because patients don't always know if they're sick. It's always better to be safe than sorry.
If you would like to know how this system is carried out in your dentist's office, ask to be shown how it's done. Dentists welcome the opportunity to ease their patients' concerns, rather than have them leave the office with unanswered questions. Once you see the work that goes into making the dental office a clean and safe environment, you will feel reassured.
It is worth noting that even though standard precautions are used, it is still important to tell your dentist of changes in your health. This will help your dentist suggest the right choices of treatment for you.
When should I take my child to the dentist for the first time?
It's important to get an early start on dental care, so that your child will learn that visiting the dentist is a regular part of health care. The first step is to choose a dentist for your child.
It may be your own dentist or one who specializes in treating children (called a pediatric dentist). Once you have selected a dentist, call the office to find out at what age he or she prefers to see child patients for the first time. CDA encourages the assessment of infants, by a dentist, within 6 months of the eruption of the first tooth or by one year of age.
It's important to make the first visit a positive experience for your child - one reason why it's best to visit before a problem develops. If you think there is a problem, however, take your child to the dentist right away, no matter what age.
If you are a nervous dental patient, ask your spouse or another family member to take the child for the appointment. If your child senses that you are nervous, he or she may feel nervous too. When you talk to your child about going to the dentist, explain what will happen without adding things like "it won't hurt" or "don't be scared."
Be sure to get an early start on regular dental care at home. Start cleaning your child's mouth with a soft damp cloth before teeth come in and continue with a soft toothbrush once he or she has a first tooth. Limit the number of sugary treats you give your child, and focus on healthy food choices from the very beginning.
Other Resources
Why doesn't my dentist just accept payment from my insurance company? I don't have dental insurance and can't afford to go to the dentist. What can I do and why does dentistry cost so much anyway?
Dental plans, offered by many employers, are a means to help you pay for your dental treatment. Most Canadians enjoy dental plans and the insurance companies that provide them are actually benefit carriers. Carriers reimburse patients based on the level of coverage decided by the patient's employer.
When you visit the dentist, it's the dentist's role to make a treatment plan based on your oral health needs. Your needs may be different from what is covered by your dental plan. It is your right to decide whether or not to go ahead with any treatment.
You should not decide based on what your plan covers. If you agree to have the treatment, it's your responsibility to pay for it. It is the responsibility of the benefits carrier's to reimburse you for the amount covered by your dental plan.
Many dentists are willing to contact a patient's benefits carrier, on a patient's behalf, to find out if a treatment is covered. The patient has to pay the portion that's not covered and the dentist may offer a payment plan to help.
I don't have dental insurance and can't afford to go to the dentist. What can I do and why does dentistry cost so much anyway?
If you do not have a dental plan and cannot afford to pay your entire bill at once, ask your dentist about a payment plan. If you cannot afford care, even with a payment plan, contact the nearest:
- Social services agency to see if you qualify for government-funded dental care
- Dental school where senior dental students provide treatment at a reduced cost
Dental services may seem expensive. In Canada, we don't have to pay directly when we visit a doctor or hospital, so we may not realize the high cost of providing health services. Overhead costs are high for dentists. They have staff, equipment and other operating costs.
The good news is that you can avoid costly dental treatment by brushing, flossing and visiting your dentist regularly for a dental exams. Regular dental exams cost money, but they are less expensive than fixing serious dental problems that stem from neglect.
Other Resources
What's the difference between the bleaching I can do at home with a kit from the store and the bleaching that my dentist does?
Dentists have been doing what's called "non-vital" bleaching for many years. Non-vital bleaching is done on a damaged, darkened tooth that has had root canal treatment. "Vital" bleaching is done on healthy teeth and has become more popular in recent years.
Vital bleaching, also called whitening, may be carried out in the dental office or the dentist may instruct the patient on how to do the bleaching at home. There is also a wide variety of products for sale in stores. Not all products are the same and not all give you the same results.
Different products, including those used by dentists, may also have different risks and side effects.
Here is an overview:
Whitening toothpastes with abrasive ingredients are really not bleaching products at all, but work on surface stain only. These products are sold in many stores.
Some whitening toothpastes do contain a chemical ingredient (or "bleach") that causes a chemical reaction to lighten teeth. Generally, they have the lowest amount of "bleach." They may not whiten as well as stronger products, but they have less chance of side effects. These pastes are brushed onto teeth and rinsed off, like regular toothpaste.
Bleaching kits sold in stores stay on your teeth longer than toothpaste and contain stronger "bleach". These store-bought products do not come with the added safety of having your dentist monitor any side effects. They also come with a one-size-fits-all tray that holds the "bleach" and is more likely to leak the chemical into your mouth.
Dentists may use products with stronger "bleach", but they give patients careful instructions to follow. They are also trained to spot and treat the side effects that patients sometimes report during bleaching. In addition, if a tray is needed to apply the "bleach", dentists supply custom-made trays. Because products used by dentists are strong, they tend to produce the best results.
Patients should be aware that the long-term use of whitening or bleaching products may cause tooth sensitivity or tooth abrasion. Please consult with your dentist before using a whitening or bleaching product.
My dentist is recommending treatment (I know nothing about). What should I do?
Ask questions. It sounds simple enough, but sometimes we feel embarrassed to ask simple questions. There is no need to feel that way.
You will feel much better, and be able to make a better decision, if you understand the dental procedure that is recommended to you. If you don't say anything, your dentist may think that you already understand.
Here are some tips when asking questions. Ask:
- If you can see any pictures of the procedure or what it looks like when it is done;
- How many times your dentist has done this procedure in the past;
- How much it will cost;
- How long it will take;
- If it will need to be redone in the future;
- If there are alternatives to the procedure and if so, what are the pros and cons of each option.
The final decision about how and when to proceed with any treatment is yours. To help you understand what is involved in the treatment, your dentist may give you some printed material to read.
If you have already left the dental office without asking questions, call back later. Be careful about getting information from unknown sources, including sources on the Internet. Some of this information may not be reliable.
After all your questions have been answered, if you are still uncertain, you may wish to get a second opinion from another dentist. Often, a second opinion will give you confidence that your dentist has planned the right treatment for you.
How do I make a formal complaint concerning the professional services received in a dental office in Canada?
CDA is not responsible for handling complaints since we have no mandate to regulate dentists. Formal complaints concerning the professional services received in a dental office are handled by your provincial regulatory body.
A directory of provincial dental regulatory authorities is available on CDA's website at: Regulatory Authorities & Provincial Associations.
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