What to Look for When Buying a Dental Practice: A First-Time Buyer’s Guide

Karl Frye
Aug 4
2 min read

Purchasing a dental practice is an exciting leap, but it’s also a big decision. The right opportunity can set you up for long-term success, clinical freedom, and financial independence. But the wrong one? It can mean stress, burnout, and expensive mistakes.

At Frye Practice Sales, we help first-time buyers across California navigate the process with clarity and confidence. Here’s what you should know before you sign on the dotted line.

1. Location, Location, Location

You can change equipment, update software, and rebrand a practice—but you can’t change its neighborhood. Evaluate:

Local demographics (family-friendly, affluent, underserved, etc.)
Visibility and foot traffic
Competition density
Commute and lifestyle fit

Pro Tip: Don’t just look for “hot” areas. Look for places where your services will meet real demand.

2. Financial Health of the Practice

Before falling in love with a space, take a deep dive into the numbers:

Annual collections and overhead
Net income and cash flow
Payer mix (PPO, fee-for-service, Medicaid)
Production by the provider (if associates are involved)

A trustworthy broker like Frye Practice Sales can help you interpret these numbers and determine if the price matches the value.

3. Patient Base & Retention

A loyal patient base is one of the most valuable assets you’re buying. Review:

Number of active patients
New patient flow per month
Recall system and hygiene program strength
Attrition rates

Look for: A solid hygiene program and strong recall system—this often reflects practice stability and growth potential.

4. Transition Plan & Staff Continuity

Will the seller stay on temporarily to help with the transition? Will key staff remain in place? Patients tend to stay loyal when there’s a smooth handoff and familiar faces remain in the office.

Ask about:

Team experience and roles
Employment contracts
Staff turnover rates

5. Technology & Equipment

While outdated tech isn’t always a dealbreaker, it may require immediate investment. Check the status of:

Imaging equipment
Practice management software
Chairside tools and operatories
Digital or paper charting

If you're planning on growing quickly, you may need a space with room to expand or upgrade.

6. Legal & Regulatory Cleanliness

You don’t want to inherit hidden liabilities. Make sure your due diligence covers:

Lease terms and property zoning
Insurance compliance
OSHA and HIPAA protocols
Any pending lawsuits or complaints

Work With the Right Experts

Buying a dental practice is a major investment, and you don’t have to do it alone. At Frye Practice Sales, we connect buyers with pre-vetted opportunities across Arizona and provide hands-on guidance throughout the entire journey, from due diligence to closing.