Common Mistakes to Avoid When Buying a Dental Practice

Purchasing a dental practice is an exciting milestone, but it can also be overwhelming. With so many moving parts—financials, staff, patient base, and location—buyers can easily make decisions that cost them time, money, and peace of mind.

At Frye Practice Sales, we’ve seen it all. To help you succeed, here are some of the most common mistakes buyers make when purchasing a dental practice—and how you can avoid them.

1. Skipping a Proper Valuation

Many buyers rely solely on the seller’s numbers without a thorough review. Without a professional practice valuation, you could end up overpaying or buying a practice with hidden financial issues.

👉 Solution: Always work with a trusted broker who provides lender-ready valuations and detailed financial analysis.

2. Ignoring the Practice’s True Overhead

A practice may look profitable on paper, but high overhead costs can eat into your earnings. Pay close attention to:

• Staff salaries

• Rent or mortgage payments

• Supply and lab costs

  
  

👉 Solution: Review overhead percentages and compare them to industry benchmarks. Frye Practice Sales helps buyers analyze these details.

3. Overlooking the Staff Transition

The team you inherit is often the backbone of the practice. Losing key employees during the transition can hurt patient retention and disrupt operations.

👉 Solution: Have a transition plan that encourages staff to stay and maintain continuity.

4. Failing to Evaluate Patient Base

A practice with declining patient numbers or low patient loyalty can be risky. Look beyond how many patients are on the books—focus on how many are active and engaged.

👉 Solution: We help buyers assess active patient counts, recall systems, and long-term patient loyalty.

5. Not Planning for Growth

Some buyers focus only on current revenue without considering long-term potential. A practice with untapped opportunities can be more valuable than one that’s already maxed out.

👉 Solution: Identify areas for growth, like new services, expanded hours, or better marketing strategies.

6. Going Through the Process Alone

Buying a practice without expert guidance can lead to overlooked details, poor negotiations, or unfavorable deal terms.

👉 Solution: Partner with an experienced broker like Frye Practice Sales to protect your investment and simplify the process.

Set Yourself Up for Success

Avoiding these mistakes can make the difference between a stressful purchase and a successful, profitable practice. At Frye Practice Sales, we specialize in guiding buyers through every stage—from identifying the right opportunity to closing the deal and beyond.

Understanding the Market

The Importance of Market Research

Before diving into a purchase, it's crucial to understand the market landscape. Research current trends, patient demographics, and the competitive environment. This knowledge can help you make informed decisions.

Analyzing Competition

Look at other practices in the area. What services do they offer? How do they market themselves? Understanding your competition allows you to position your practice effectively.

Financial Trends in Dentistry

Stay updated on financial trends in the dental industry. Are practices in your area thriving? What are the average earnings? This information can guide your expectations and planning.

Building Relationships

Networking with Other Professionals

Building relationships with other dental professionals can provide valuable insights. Attend industry conferences, join local dental associations, and connect with peers. These connections can lead to referrals and partnerships.

Engaging with the Community

A strong community presence can enhance your practice's reputation. Participate in local events, offer free dental checks, or sponsor community activities. This engagement can attract new patients and build loyalty.

Final Thoughts

Purchasing a dental practice is a significant step. By avoiding common pitfalls and preparing thoroughly, you can set yourself up for success.

At Frye Practice Sales, we’re here to help you navigate this journey. Whether you're buying, selling, or transitioning, our expertise ensures you maximize your practice's value and secure a successful future.

Remember, the right support can make all the difference! Don't hesitate to reach out for guidance. Your dream practice is within reach!