The most common mistakes when buying a dental practice are not agreeing on a firm closing date, making an offer too far below asking price without a clear reason, damaging the relationship with the selling dentist, taking on new personal debt before financing is approved, underestimating the working capital needed after closing, and trying to complete the purchase without an experienced transition team.
Most of these mistakes come down to planning. Buyers who arrange financing early, review the practice carefully, and keep the seller involved through the handover give themselves the best chance of keeping the patients and staff that make the practice valuable.
Last updated: October 2026
Purchasing a dental practice is a sizable financial decision. If you aren’t careful, making mistakes along the way could cause you significant financial strain and hurt your future success. As such, it’s important to learn from the errors of past dental practice purchasers to maximize your chances of making an advantageous and lucrative purchase. Here are some of the top mistakes to avoid when buying a dental practice.
Not determining a firm closing date
Nothing kills a deal like failing to agree to a closing date. By not setting up a firm closing date and sticking to a strict timeline, your deal will likely fail due to continuous delays. As a result, both parties will likely lose time and money so it’s essential to agree upon a firm closing date once you tender the offer.
Making too low of an offer
There is a fine line between getting the best deal possible and losing a dental practice to a higher offer. If there isn’t a valid reason for negotiating a practice price down, making a below-asking price offer could hurt your relationship with the seller. You could lose a great opportunity to a higher bidder. Therefore, you should be wary of this common mistake that new buyers often make and avoid over-negotiating.
Not maintaining a good relationship with the seller
One of the main benefits of purchasing a dental practice is that you’ll be able to start your business with an existing customer base. If you don’t maintain a positive relationship with the seller, however, you may not receive their endorsement after the practice transitions. As a result, a large portion of their loyal customer base could become lost. Particularly if part of the arrangement is for the seller to stay on working for you to help transition the practice and retain patients, a good working relationship is vital.
Taking on new debt before financing is approved
Lenders review your credit profile, existing debt and liquidity before approving a practice loan. Buying a house, a car or another major asset before your practice financing is in place can change how a lender sees your application. Hold off on large purchases until your financing is approved.
Planning only for the purchase price
The purchase price is the largest cost of buying a practice, but it is not the only one. Buyers also need working capital to cover payroll and expenses while insurance collections build, along with closing costs, professional fees, and any equipment or facility updates. Plan for the full cost of ownership before making an offer.
Skipping a careful review of the practice
A practice can look strong on revenue and still carry high overhead, an inactive patient base or heavy dependence on the selling doctor. Review the financials, patient data, staff and lease terms before committing, and ask for explanations of any changes in production or collections.
Not enlisting the aid of a professional transition team
Assuming you’ll be able to handle all the potential issues that arise while purchasing a dental practice without any guidance is a detrimental mistake that many new buyers make. Without the guidance of an experienced transition professional, your deal could quickly become derailed due to unexpected challenges that you don’t have experience handling. As such, trying to save money by not hiring a trained transition professional could cost you significantly in the long run.
Enlisting the aid of a professional transition team such as Henry Schein Dental Practice Transitions can significantly minimize the challenges that arise while purchasing a dental practice. Whether you’re looking to purchase a general dental practice, orthodontic, or endodontic practice, your local Transition Consultant can help. Our consultants guide buyers through valuation, financing, due diligence and the handover, so problems can be found and worked out before closing. For more information regarding our services, contact us today.
Frequently Asked Questions
What is the biggest mistake when buying a dental practice?
A common and costly mistake is trying to complete the purchase without experienced guidance. Buying a practice involves valuation, financing, due diligence, legal agreements and the handover of patients and staff, and problems in any of those areas can delay or derail the deal.
Should I offer less than the asking price for a dental practice?
Only when there is a clear reason, such as issues found during due diligence. An offer far below asking price without a reason can damage the relationship with the seller and cost you the practice if another buyer offers more.
Why does the relationship with the seller matter after the sale?
Patients often stay with a practice because they trust the selling dentist. If the seller introduces you to patients and supports the transition, more of those patients are likely to stay.
Can I buy a new house or car before buying a dental practice?
It is best to wait. Lenders review your debt, credit and liquidity when approving practice financing, and a large new purchase can weaken your application or delay approval.
How much money do I need beyond the purchase price?
Buyers should plan for working capital, closing costs, professional fees, and any equipment or facility updates, in addition to the purchase price. The exact amount depends on the practice and the deal structure.
Why is a firm closing date important?
Without an agreed closing date, a deal can stall through repeated delays, costing both the buyer and the seller time and money. Agreeing on a date when the offer is made keeps the process moving.
Reviewed by Greg Auerbach, MBA
This article was reviewed by Greg Auerbach, MBA, Senior Director, Marketing & Sales Enablement at Henry Schein Dental Practice Transitions. Greg has worked with dentists for nearly twenty years and has appraised or transitioned thousands of dental practices across the United States.
