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Trivia Question❓

What percentage of dental practices in the United States are currently owned by a dentist as of recent industry reports?

Answer at the bottom of the newsletter

Growing Through Acquisition: When and How to Buy Another Practice

For many dental practice owners, the idea of growing through acquisition is an appealing strategy. Expanding your practice by acquiring another can provide immediate access to new patients, additional services, and increased revenue. However, acquiring a dental practice is a significant decision that requires careful planning and strategic consideration.

The first question to ask is, when is the right time to acquire another practice? If your current practice is thriving, with a stable patient base and strong cash flow, you may be in a good position to expand. An acquisition is a smart move if you're looking to diversify your services, expand into a new location, or strengthen your practice’s market position. However, timing is essential—acquiring too early without the right operational structure can strain your resources and divert attention from your existing practice.

Next, consider how to acquire a dental practice. Start by researching available practices. Look for practices with solid reputations, strong patient relationships, and efficient operations. Assess the financial health of the practice, including its revenue streams, expenses, and any liabilities. Negotiate a fair purchase price, factoring in both tangible assets (like equipment and facilities) and intangible assets (such as patient loyalty and brand recognition).

Cultural fit is also important. A smooth integration depends on shared values and operational compatibility. Ensure that your team and patients are well-informed about the transition to ensure a seamless experience.

Acquiring another dental practice can be a rewarding growth strategy, but success depends on careful planning, thorough research, and effective execution.

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💡 Answer to Trivia Question:

Approximately 70% of dental practices in the United States are still owned by a dentist, though trends are shifting as more private equity firms and dental service organizations (DSOs) increase their presence in the market.