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Preparing to buy a dental practice
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ost people think about buying a house for years before they even start viewing them – browsing online sales platforms, researching areas and using online mortgage calculators. Buying a business is a much bigger decision, yet there are currently few online tools and no central marketing register due to confidentiality, making advance research much more difficult. However, you will still need to prepare for this decision some time in advance, so here are some of our top tips to help you prepare in the years prior to buying a dental practice.
1. Define your goals and vision
Before diving into the buying process, take time to clarify your professional and personal goals. Ask yourself: • What type of practice do I want (NHS, private, mixed, general dentistry or specialist)? • Do I prefer a rural, residential, or city centre location? • What size practice am I comfortable managing? • Am I looking for an established practice or a growth opportunity? Having a clear vision will help you narrow down suitable options when the time comes to look on the open market.
2. Gain clinical and business experience
Owning a dental practice requires clinical expertise and strong business acumen. To prepare: • Work as an associate to refine your clinical skills – lenders will usually require three years’ associate accounts for your loan application. • Consider taking courses in practice management, leadership, advertising and financial management. • Where possible, take on management responsibilities in your associate role for additional experience. Learning how to handle staff, patients and finance will benefit you greatly when you own your own practice.
3. Build financial stability
Lenders want to see that you are already in a good financial position before they lend to you. Consider: • Reducing debt: try to keep personal loans, car finance and credit card debt to a minimum, if any. Don’t be put off if you do have existing loans – a business loan can still be achievable.
• Saving a deposit: try to aim for a 10% deposit
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where possible. 95%-100% funding is possible, providing you have an excellent overall financial position. However, lenders usually request anywhere between a 10-25% deposit. Maintaining reasonable living costs: the more you require to live on month by month, the more you will need to earn from the target practice to be able to service the loan repayment. As such, higher living costs will restrict the practices you can buy as some may not offer the level of profit you require to maintain your living costs in addition to your loan repayments. Maintaining a good credit score: A strong credit history will give you a better chance of securing a loan and, in some cases, offer you better loan terms.
4. Understand the market
Consider market trends and conditions, such as: • Population and demographics in potential locations – how does this fit with what type of income you want to generate? • Competition in the area – if you are looking to grow private income, are there already practices providing the same treatments in the area? • Current practice valuations and sales trends – consider attending a purchase seminar to get a feel for the practice sales market. • Emerging technologies and patient expectations – consider if you are willing to purchase a practice that requires financial investment to update systems and processes.
5. Evaluate potential practices carefully
Once you’re ready to start looking at practices, assess each opportunity carefully. Key factors to examine include: • How the practice is valued: determine whether you are looking for a practice valued on an Associate Led or Principal Led model. Visit PFM Dental’s website to read our ‘Dental Practice Buying Guide for Dentists,’ which explains the difference between the models. • Accounts vs Prospectus: arm yourself with information about any assumptions made in the sales prospectus, such as cost reductions, principal
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income and property costs. If a prospectus model assumes a principal undertaking specialist treatment that you don’t have the skills for, you may not be able to purchase that practice. Staff and operations: evaluate employee experience and office efficiency – e.g. who will manage the practice and do you need to computerise? Facilities and equipment: determine if any major upgrades or renovations will be needed and when, plus if you have the cash to do these.
6. Engage industry professionals
Having a dental specialist network of advisors to hand will provide you with valuable insights into the market and potentially give a greater opportunity to find the right practice for you. Consider having discussions with and/ or instructing a: • Dental specialist accountant. • Dental specialist finance broker. • Dental specialist solicitor. A strong support team will guide you through the complexities of purchasing a practice.
Conclusion
Preparation for a dental practice purchase takes time, consideration and financial planning. Ensure to engage with dental specialist advisors who have experience of the market and buying process alongside your own research. At PFM Dental, we want every buyer to enter into their practice purchase with confidence and excitement, which is why we offer all of the purchase services under one roof. Please get in touch for a free, no obligation chat about your future purchase plans. PFM’s next ‘Preparing for a Practice Purchase’ seminar is on Wednesday 21st May in Leeds. n
About the author Samantha Hodgson is a finance broker and practice valuer at PFM Dental.
AI in dental marketing
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t Connect My Marketing, we have closely monitored, utilised, and implemented the growth of Artificial Intelligence (AI) in the dental industry. There are various benefits of the use of AI, especially with respect to dental practices engaging with patients and streamlining processes. AI-driven tools can enhance dental marketing by making it more personalised, efficient, and cost-effective. Among some of the most influential advancements are AI-powered chatbots and virtual assistants, which help dental practices generate leads and provide patient support around the clock. But how exactly do these tools improve patient engagement, and when is team intervention still necessary?
Increased lead generation
For dental practices, generating leads and maintaining engagement is paramount. Virtual assistants respond instantly, answer common questions, collect patient details, and even schedule appointments. This realtime interaction increases conversion rates
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by keeping potential patients engaged with tailored responses, without requiring manual effort from the practice. Personalising these interactions builds trust and strengthens relationships. AI tools can gather necessary patient information – such as their name, contact details, and dental concerns – and use this data to offer a more human-like experience. However, while AI excels at initial engagement, a balance between automation and human intervention is essential to maintain these relationships. AI can only take the conversation so far before a human team member needs to step in.
24/7 availability
One of the biggest advantages of AI-driven virtual assistants is their ability to operate 24/7. Many dental practices receive a high influx of patient enquiries daily, which can be overwhelming and difficult to manage. AI chatbots ensure that every enquiry is addressed, even outside business hours, capturing leads that might otherwise have gone unanswered or elsewhere. However, there are concerns about whether AI can replicate the interaction
of a real team member. While chatbots efficiently answer FAQs and book appointments, some patients prefer speaking to a human. We recommend using AI as the first point of contact while ensuring human touchpoints remain for more complex or sensitive conversations.
Cutting costs and improving efficiency
AI helps reduce administrative workload and costs, which is a major benefit for dental practices. Virtual assistants free up staff time, allowing them to focus more on in-practice care. AI tools can also personalise responses, suggesting treatments based on the patient’s specific concerns. With multilingual capabilities, AI can broaden accessibility, reaching a more diverse audience. While the efficiency benefits of AI are significant, we always advise practices to use AI as a complement to their dental team, rather than relying on it entirely. A well-integrated AI system can enhance workflow, but human expertise remains irreplaceable when it comes to building long-term patient relationships.
How beneficial are AI virtual assistants for dental marketing?
From our experience, AI virtual assistants are transforming dental marketing by boosting lead generation, improving accessibility, and reducing operational costs. The personalisation achieved by AI assistants enhances patient interactions, helping dental practices refine their marketing strategies and connect better with potential patients. However, the key question remains: Does AI truly enhance the patient experience? The answer lies in balance. While AI can handle repetitive tasks efficiently, human interaction is still vital for building trust and ensuring patients feel valued. By strategically integrating AI into a dental practice’s marketing efforts, we can create a seamless, patient-centred experience that blends automation with personal care. n
About the author Meg Stables, Marketing Assistant at Connect My Marketing.
The Probe | March 25
03/03/2025 11:46:34