Buying a Dental Pratice

Frequently Asked Questions

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General Questions

What should I pay for a practice?
This is the most commonly asked question and one that requires the most effort to answer. While there are many “rules-of-thumb” (e.g., percentage of gross collections or multiple of net income), those historical measures only provide a broad estimate using industry assumptions. We approach each practice appraisal as a unique engagement. We use multiple approaches in combination with our 30 year industry experience to arrive at a valuation that fair and industry consistent.
How long will it take to buy a practice once I identify it?
In general, it typically takes 2 to 4 weeks to review the seller’s appraisal and evaluate the practice, and then it takes 2 to 4 weeks to negotiate the transaction, obtain funding, draft / review closing documents and close the transaction. Much of this is dependent upon third parties, like other brokers, banks and lawyers. However, having an experienced practice broker not only shortens the typical transaction time but more importantly improves the overall process, leading to a more successful transaction.
What are the overall steps in the process?
  • Obtaining and reviewing the data/appraisal from the selling dentist (agent) and an on-site visit.

  • Determining if the practice is the right fit.

  • Negotiating the purchase price and terms.

  • Executing an earnest money agreement.

  • Due diligence, obtainment of financing and document preparation.
     Closing and funding. 

How long is the typical transition time for the selling dentist after we close?

Most often the selling dentist remains with the practice to provide post-closing transition of the staff and patients to you, the purchasing dentist. Typically this time period ranges from one to six months. Longer. However, this is a very, very key point that must be thoroughly vetted and decided pre-closing. The key point is that you have sole discretion of when the selling dentist should leave, or if necessary, how long the selling dentist may contractually remain. 

Should the seller finance part of the transaction?

Today’s lending market is advantageous since there are banks that specialize in dental practice transactions (that we routinely work with), and interest rates are at all-time lows (making it affordable for the purchaser). In general, the seller finances a small portion of the practice. Most often it makes sense that the seller “retain continuing incentives post-closing” or if the seller wishes to obtain tax advantages through gain deferral. 

Why should I use a broker?

Over the past 30 years, we of course have heard horror stories of transactions that have simply “gone bad.” While a broker cannot guarantee a successful transaction, there are many, many issues that are complex and require multifaceted expertise. That is why we strongly recommend a team approach that can successfully address issues concerning price, value, transaction structure, legal documentation, professional accountability, taxation, and your emotional wellbeing. The asset you are acquiring will be one of the most important and consequential decisions of your life. With that importance, you should not act alone and take chances to save a few dollars. We understand this and do everything possible to protect your interest by providing fair and competent transition assistance. 

What will your representation cost me?

Typically each party (seller and purchaser) pay their own broker or representative. Fees for purchaser representation vary by organization, state and transaction size. We provide a discount of our fees to DDR Dental Trust members (if you are a member call for a quote). Legal fees for legal document preparation are separate and typically cost $2,500 to $3,500 per transaction. 

Do you represent only me or both parties?

Because of our legal and accounting backgrounds, we believe that we should only represent one side of the transaction. That way our loyalties and fiduciary obligations remain clear and uncompromised. 

About Our Services

An end-to-end dental practice transition firm delivering talent from by industry experts.

DDR Dental is the most experienced dental practice transition firm in Texas. We focus on providing dental practice appraisals and brokerage services to dentists in the across Texas. Whether you are just starting out or are ready to retire, we can help. We have provided comprehensive selling and buying services to thousands of dentists. Let us share our experience with dental practice associateships, dental practice partnerships, dental practice start-ups, dental practice appraisals, and dental practice brokerage transactions.

An end-to-end dental practice transition firm delivering talent from by industry experts.


P. O. Box 79584 Houston, Texas 77279