Kevin Cooper, Author at American Practice Consultants

What Dentists Are Looking for When Buying a Dental Practice

What Drives Dentists Toward Ownership?

For many dentists, practice ownership is the ultimate goal. It’s the path to autonomy, increased income, and the opportunity to shape a business that reflects their values and clinical philosophy.

But once a dentist decides they’re ready to buy, what exactly are they looking for in a practice?

In this post, we’ll explore the key factors dentists consider when evaluating dental practices for purchase, and how sellers can position their practices to meet buyer expectations.

1. Location, Location, Location

A great practice in the wrong location can be a dealbreaker. Dentists typically look for:

Proximity to home or preferred lifestyle areas
Growing or stable population demographics
Good visibility and parking access
Reasonable competition in the area

Tip for Sellers: Highlight community amenities, patient demographics, and referral relationships when marketing your practice.

2. Strong, Loyal Patient Base

Buyers want to walk into a practice with steady revenue and consistent patient flow. They look for:

Active patient count over the past 12–24 months
New patient acquisition trends
High patient retention rates
Patient base with favorable insurance mix or fee-for-service ratios

What Helps: Sharing KPIs like recall rates, patient attrition, and appointment backlog can demonstrate practice stability.

3. Healthy Financial Performance

Ultimately, the financials drive the decision. Dentists often request:

3–5 years of profit and loss statements
Collections and net income trends
Overhead breakdown
Salaries, lab costs, and rent structure

Practices with clean books, consistent earnings, and 55–65% overhead are especially appealing.

Bonus: Sellers who clearly separate owner compensation from practice profit make it easier for buyers to understand true earnings potential.

4. Modern Equipment and Digital Systems

While not every buyer expects the latest technology, most dentists appreciate:

Digital X-rays and intraoral cameras
Paperless records / practice management software
Well-maintained chairs, compressors, and sterilization units

Outdated equipment isn’t always a dealbreaker, but it can affect pricing—or lead buyers to factor in upgrade costs.

5. Growth Potential

Dentists want practices with room to grow, whether through clinical expansion or operational efficiency. Key indicators include:

Procedures currently referred out (e.g., implants, molar endo, ortho)
Available space for an additional operatory
Marketing opportunities not yet explored
Limited evening or weekend hours that could be added

Smart Sellers: Frame untapped opportunities as upside, not shortcomings.

6. Strong Staff and Office Culture

A committed, well-trained team is a huge asset. Buyers want to see:

Long-term employees with patient rapport
Low turnover
Positive workplace culture and team dynamics

When possible, buyers often want to retain staff to help ensure a smooth transition and patient continuity.

7. Favorable Lease or Real Estate Terms

If the practice doesn’t own the building, the lease becomes part of the deal. Buyers look for:

Assignable lease with multiple renewal options
Reasonable rent-to-revenue ratio (ideally under 7–9%)
Option to purchase the real estate in the future (preferred by many buyers)

If the seller owns the building, clarity about purchase or lease terms can be a major selling point.

8. Smooth Transition Plan

Most buyers aren’t just looking at the numbers—they’re looking at the human side of the transition too.

They value:

Willingness of the seller to stay on temporarily if needed
Help introducing patients and staff to the new owner
Assistance navigating insurance credentialing and business setup

Practices with well-thought-out transition strategies are more attractive and less risky.

In today’s market, dentists ready for ownership are looking for financially sound practices with strong patient relationships, growth potential, and minimal friction during transition.

If you’re a seller, aligning your practice with these buyer priorities—and working with an experienced dental broker—can make your practice more attractive, speed up the sale, and help you command top value.

Are You Ready to Sell—or Looking to Buy?

At American Practice Consultants, we help dentists across New Jersey and Eastern Pennsylvania connect with the right buyers and sellers. Whether you’re preparing your practice for sale or actively seeking the perfect acquisition, our team will guide you through every step.

📞 Contact us today for a confidential consultation and take the next step toward ownership or retirement.

What Dental School Graduates Should Consider as They Enter the Workforce

You’ve Earned the Degree—Now What?

Graduating from dental school is a major achievement—but it’s also just the beginning of your professional journey. As you transition from student to practicing dentist, there are critical decisions to make that will shape your career trajectory, financial success, and work-life balance for years to come.

In this guide, we’ll explore the key things new dental graduates should consider as they enter the workforce and start planning their future in dentistry.

1. Understand Your Career Path Options

After graduation, most dentists start with one of the following:

➤ Associate Position

This is the most common first step. Working as an associate dentist provides:

Guaranteed salary or percentage of collections
Mentorship from experienced clinicians
A chance to improve clinical speed and case presentation

However, associateship also comes with limited autonomy and income potential.

➤ Residency or Specialty Training

If you’re pursuing a specialization like oral surgery, endodontics, or orthodontics, residency is your next move. Keep in mind:

Extra years of training mean delayed income
But specialists often enjoy higher long-term earnings

➤ Practice Ownership (Sooner Than You Think)

Some ambitious graduates opt to purchase a practice within a few years. While this comes with risk, it also brings:

Control over your career
Greater income potential
Long-term equity and tax advantages

Tip: Whether you’re buying soon or later, start learning about practice ownership early—it pays off later.

2. Prioritize Finding the Right First Job

Your first dental job can set the tone for your early career. When evaluating offers, think beyond the paycheck:

Factor	Why It Matters
Clinical variety	Helps build confidence and skill
Mentorship	Supports your growth and reduces early burnout
Office culture	Affects happiness and job satisfaction
Path to ownership	Some associateships offer eventual buy-in opportunities

3. Start Thinking About Long-Term Goals Early

Even if you’re just starting out, it’s wise to begin thinking about your 5–10 year plan. Ask yourself:

Do I want to own a practice someday?
Where do I want to live and build my career?
What kind of lifestyle do I want to create?

Your answers can shape early decisions—like whether to accept a position in a corporate group, a private practice, or a rural community with less competition and more ownership potential.

4. Understand the Business Side of Dentistry

Dental school teaches clinical skills—but rarely covers business fundamentals. To succeed long-term, you’ll need to learn:

Insurance and billing processes
Staff management and HR basics
Marketing and patient retention
Overhead and profit margins

If you plan to own a practice, even eventually, start now by:

Reading dental business books
Listening to practice ownership podcasts
Talking to a dental broker or advisor about market trends

5. Manage Student Debt Wisely

Dental school debt can feel overwhelming, but smart planning makes it manageable. Consider:

Income-driven repayment plans
Refinancing options (once your income stabilizes)
Building an emergency fund and budgeting effectively

Don’t let fear of debt prevent you from pursuing ownership—practice owners typically earn more and pay off loans faster.

6. Seek Out Mentorship and Community

You don’t have to navigate this path alone. Surround yourself with:

Mentors who can offer clinical and business advice
Peers who share your goals and challenges
Industry professionals (brokers, accountants, financial advisors) who specialize in dentistry

Join dental associations, alumni groups, and online forums. These connections can lead to job opportunities, partnerships, and support.

7. Learn About Practice Ownership Opportunities

If practice ownership is in your future (and it should be!), start exploring:

What practices are for sale in your preferred area
How practice valuations work
Financing options for buyers
What it takes to successfully transition into ownership

Working with a dental practice broker early can help you understand your options and avoid costly mistakes.

Conclusion: Your Dental Career, Your Way

The choices you make in your first few years as a dentist will shape the rest of your career. Whether you plan to become a partner, purchase a practice, or specialize, the most successful dentists start with a plan.

Take the time to think strategically about your future—and surround yourself with advisors who can help guide you.

Ready to Learn More About Ownership Opportunities?

At American Practice Consultants, we specialize in helping dentists across New Jersey and Eastern Pennsylvania transition into practice ownership. Whether you’re one year or five years out of dental school, we’ll help you understand the market, evaluate listings, and prepare for success.

📞 Contact us today to schedule a confidential consultation and start planning your future in dentistry.

Should You Upgrade Your Dental Office Before Selling?

One of the most common questions we hear from dentists preparing to sell their practice is:

“Should I upgrade my dental office before putting it on the market?”

While a modern, updated space can attract buyers and boost perceived value, renovations can also be costly and may not guarantee a full return on investment.

In this post, we’ll break down the pros and cons of upgrading your dental office before a sale, helping you decide what’s worth updating — and what’s best left for the buyer.

Why Office Upgrades Matter to Buyers

Today’s buyers, especially younger dentists, often look for practices that offer:

A clean, modern aesthetic
Digital workflows and paperless records
Updated operatories and equipment
Efficient patient flow and space utilization

However, not all upgrades are created equal — and timing, budget, and local market conditions should all factor into your decision.

🔍 Pros of Upgrading Your Dental Office Before Selling

1. Boosts First Impressions and Buyer Interest

A fresh, updated office often generates more buyer interest — and can result in quicker offers.

Aesthetic upgrades like paint, flooring, and lighting create a clean, inviting feel.
Updated waiting areas and operatories make the space feel turn-key.

2. May Increase Perceived Value

Even minor improvements can make your practice feel higher-end and help justify your asking price.

Digital x-rays, intraoral cameras, and electronic health records signal a modern, efficient practice.
Cosmetic changes can make outdated spaces feel refreshed without a major renovation.

3. Can Improve Operational Appeal

Upgrades that improve patient flow, accessibility, or operatory function enhance the business case for buyers — especially if they plan to step in and start treating patients immediately.

⚠️ Cons of Upgrading Your Dental Office Before Selling

1. High-Cost, Low-Return Risk

Large-scale renovations or new equipment purchases may not generate a dollar-for-dollar return.

A $100,000 remodel could only boost value modestly depending on your market.
Some buyers may prefer to remodel themselves and see recent upgrades as a sunk cost they didn’t choose.

2. Disruption to Business Operations

Renovations can lead to downtime, patient inconvenience, or delayed appointments — which can negatively impact your revenue and reputation during a critical period.

3. Shifting Buyer Preferences

Not all buyers have the same taste or priorities. What you perceive as an improvement may not align with the buyer’s vision — especially when it comes to décor or equipment brand preferences.

What Should You Upgrade? (High-Impact, Low-Risk Improvements)

If you want to make your practice more marketable without overspending, focus on cosmetic and functional upgrades that offer strong ROI:

Upgrade	Estimated Cost	Benefit
Fresh paint in neutral colors	Low	Brightens space, modern feel
New flooring (LVT or tile)	Moderate	Clean, contemporary impression
Updated lighting	Low–Moderate	Enhances office ambiance
Decluttering/depersonalizing	Free	Makes space feel larger, turn-key
Deep cleaning of carpets, furniture	Low	Improves first impressions
Repairing wear and tear (doors, cabinets)	Low	Reduces buyer hesitation
Updating signage (if needed)	Low	Enhances curb appeal

Tip: A clean, well-maintained space shows pride of ownership and reassures buyers that the practice has been well cared for.

What to Avoid Upgrading Before Selling

Upgrade	Why to Avoid
Full remodels or major construction	High cost with limited ROI; disrupts operations
Brand-new dental equipment	Buyers often have personal preferences or vendor contracts
Rebranding (logos, colors, themes)	May conflict with the buyer’s desired image
Adding new technology last-minute	ROI is questionable if you’re not using it before sale

Instead, disclose aging equipment or outdated systems honestly and price the practice accordingly.

How We Advise Our Sellers

At American Practice Consultants, we work closely with dental practice owners to evaluate:

Current office condition
Market trends and buyer expectations
Budget-friendly improvements that maximize value

We help you balance investment with impact, ensuring that every dollar spent supports your sale.

Should you upgrade your dental office before selling? It depends.

Smart, cosmetic improvements can make your practice more attractive to buyers — but costly renovations or new equipment are rarely necessary and may even backfire.

The key is knowing what to improve, what to skip, and how to present your practice in the best possible light. A dental practice broker with local expertise can help guide your decision and develop a transition plan that protects your time, money, and practice value.

Ready to Sell Your Dental Practice?

Let us help you prepare your office and your business for a successful sale. Contact American Practice Consultants today for a confidential consultation and market assessment in New Jersey or Eastern Pennsylvania.

Ownership vs. Associateship

Many dentists face a pivotal question early in their careers: Should I buy my own dental practice or continue working as an associate? While both paths have their merits, the long-term financial rewards of ownership often outweigh the short-term convenience of employment.

In this article, we’ll break down the key financial benefits of dental practice ownership compared to working for someone else — and why now might be the right time to take the leap.

Higher Income Potential

📊 Associates Earn Steady Salaries…

Associate dentists typically earn a fixed percentage of collections or production, often ranging between 25%–35%, depending on the contract and office overhead. In high-production offices, this can be a solid income — but there’s a cap.

🚀 Practice Owners Build Real Wealth

As a practice owner, your earnings are not limited to a percentage. Instead, you benefit from:

All net profit after expenses.
Control over fees, services, and patient flow.
Strategic investments that grow your bottom line.

Example:

Associate: Earns $180,000/year with no equity.
Owner: Generates $1.1M in revenue with 60% overhead = $440,000 in net income.

Equity and Business Value Accumulation

Associates trade time for money — and once you stop working, the income stops too. Practice owners, however, build a saleable asset.

🏢 The Value of Practice Equity

Dental practices typically sell for 50%–85% of collections. That means if your practice collects $1M annually, it could sell for $500,000–$850,000 (or more) when you retire or exit.

This practice equity is wealth you won’t get as an employee.

Tax Advantages for Business Owners

Owning a dental practice unlocks a range of tax-saving strategies not available to associates.

💰 Common Tax Deductions for Owners:

Equipment and technology purchases.
Continuing education and travel.
Business-related meals and mileage.
Retirement contributions through SEP-IRA, Solo 401(k), or defined benefit plans.
Depreciation on real estate or leasehold improvements.

These deductions can significantly reduce your taxable income — something salaried associates miss out on.

Control Over Your Career and Schedule

While not strictly financial, autonomy has real economic value.

As an associate, your income and hours are controlled by someone else. But as an owner, you can:

Choose your work schedule.
Build a team and culture that reflects your values.
Expand into new services or specialties that increase profitability.

More control = more opportunity to grow income and reduce burnout.

Long-Term Wealth Through Real Estate Ownership

Many dental practice owners eventually buy the building that houses their practice — unlocking another layer of wealth.

🏠 Benefits of Owning Your Office Space:

Build equity in commercial real estate over time.
Receive rental income from the practice (which you own).
Enjoy tax advantages like depreciation and expense write-offs.
Retain the building as a separate investment asset after practice sale.

Owning both your practice and your property is a powerful path to long-term financial security.

Greater Financial Stability in the Long Run

While associates may enjoy predictable paychecks, their income can be vulnerable to:

Practice downsizing.
Production slowdowns.
Corporate consolidation or ownership changes.

As an owner, your income is tied to the success of a business you control, giving you more influence over your financial destiny.

Financial Comparison: Associate vs. Owner Over 10 Years

Metric	Associate Dentist	Practice Owner
Average Annual Income	$180,000	$400,000
Total Earnings (10 years)	$1.8M	$4M
Business Equity Gained	$0	$700,000 (sale value)
Tax Advantages	Limited	Extensive
Real Estate Equity	$0	$400,000+ (if property owned)

Note: Figures are illustrative and will vary based on location, efficiency, and ownership decisions.

Is Ownership Right for You?

Dental practice ownership isn’t without challenges — it requires responsibility, leadership, and a willingness to learn business skills. But for those willing to take the step, the financial upside is often substantial.

Working with an experienced dental practice broker can help you:

Evaluate if you’re financially ready.
Find the right practice in your preferred location.
Avoid costly mistakes during the transition.

While associateship can be a great starting point, practice ownership remains the best path to long-term financial freedom in dentistry. From higher income and equity to tax savings and control, owning your own practice allows you to reap the full rewards of your training and hard work.

Ready to take the next step?

Contact American Practice Consultants for a confidential consultation and explore current dental practices for sale in New Jersey and Eastern Pennsylvania.

The Hidden Challenge in Dental Practice Transitions — Insurance Credentialing

Introduction

Purchasing a dental practice is an exciting milestone — but what many first-time buyers don’t realize is that insurance credentialing can be one of the most frustrating and time-consuming challenges after closing.

Without proper planning, delays in credentialing can lead to months of lost revenue, patient confusion, and cash flow headaches.

In this post, we’ll break down what dental insurance credentialing is, why it matters when buying a practice, and how to avoid common pitfalls that can disrupt your transition into ownership.

What is Dental Insurance Credentialing?

Dental insurance credentialing is the process of becoming an approved, in-network provider with dental insurance companies.

Without being properly credentialed:

You cannot bill insurance on behalf of patients.
Claims may be denied or delayed.
Patients may have to pay out-of-network fees — causing frustration or lost business.

Why Credentialing Becomes a Challenge in Dental Practice Sales

1. Credentialing is Linked to the Individual Dentist — Not the Practice

One of the most misunderstood aspects of dental insurance is that provider credentialing typically applies to the individual dentist for a specific location.

This means that even if you buy a fully established, insurance-participating practice, you (as the new owner) must go through the credentialing process with every insurance company the practice participates with. It also means that even if you are credentialed with a provider at a location where you work as an associate, you still must get credentialed with that provider again at the new location you are purchasing.

2. Credentialing Timelines Are Unpredictable

On average, it can take 60 to 90 days to complete credentialing with insurance companies. Factors that slow down the process include:

Incomplete paperwork.
Background checks or license verifications.
Backlogs at insurance companies.

Delays can leave new owners in a difficult position — operating the practice but unable to receive insurance reimbursements for patient care.

3. The “Gap Period” Problem

Many buyers mistakenly assume that they can immediately bill under the selling dentist’s provider number while waiting for their own credentialing to complete.

This is rarely permitted unless:

The seller stays on as an associate dentist during the transition and is the treating doctor.
The insurance carrier allows a “billing under previous owner” grace period (which is becoming less common).

Without these measures, the buyer may be forced to treat patients as “out-of-network” until credentialing is finalized.

How Credentialing Challenges Impact New Practice Owners

Challenge	Impact on New Owner
Delayed Reimbursement	Cash flow strain — difficulty paying expenses, staff, or loans.
Patient Retention Risk	Patients may leave if they can’t use their insurance benefits immediately.
Administrative Burden	Increased stress managing paperwork and follow-ups with carriers.

How to Plan for Credentialing During a Practice Purchase

1. Start Credentialing Early — Before Closing

If possible, begin the credentialing process as soon as the asset purchase agreement is signed. Some carriers will allow pre-credentialing contingent on closing.

2. Work with a Credentialing Specialist

There are companies that specialize in dental insurance credentialing and can:

Submit all applications on your behalf.
Track progress with insurance carriers.
Avoid common paperwork errors.

The fee is typically small compared to the cost of delayed reimbursement. Make sure, however, that they are initially focused on just getting you credentialed. Some credentialing companies may try to get you negotiate fees at the same time as credentialing. We do not recommend this as it can add a significant amount of time to the process. You should first focus on getting credentialed and then negotiate fees at a later date, once you have been in the practice for a period of time.

3. Structure the Transition Thoughtfully

To avoid the gap period:

Consider having the seller stay on as an associate dentist temporarily. The seller can complete treatment in progress and handle any urgent treatment. Patients that do not need immediate treatment can be scheduled after the buyer completes the credentialing process.
Verify with each insurance carrier whether “billing under seller” is allowed during credentialing. You may be able to bill under the seller, however it must be clear that the seller is the “billing doctor” and you are the “providing doctor”. This may result in out of network fees so be sure to ask the carrier.
Communicate with patients in advance if there will be any temporary insurance limitations.

4. Verify All Participating Insurance Plans

As part of due diligence:

Request a list of all insurance plans the practice currently participates with.
Understand which plans are essential to the patient base.
Prioritize those plans during credentialing.

Conclusion

Dental insurance credentialing is a hidden but critical part of purchasing a dental practice. Without a proactive plan, it can create costly delays and operational challenges for new owners.

Working with an experienced dental practice broker can help identify potential credentialing obstacles early and develop a transition plan that protects both patient retention and cash flow.

Ready to Buy a Dental Practice?

At American Practice Consultants, we help buyers navigate every aspect of the purchase process — including the credentialing challenges that can derail your transition.

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