Kevin Cooper, Author at American Practice Consultants

Due Diligence 101: What Every Dental Practice Buyer Needs to Review Before Closing

Why Due Diligence Matters

So, you’ve found a dental practice that seems like a perfect fit—great location, solid collections, loyal patients. The numbers look promising, and the seller seems trustworthy.

Now it’s time for due diligence—the phase where you verify everything you’ve been told before finalizing the purchase.

Think of due diligence as your opportunity to “look under the hood” and confirm that the practice is everything it appears to be.

In this post, we’ll walk you through the key areas every buyer should review so you can move forward with confidence—and avoid surprises after closing.

Financial Statements and Tax Returns

Start by requesting the past 3 years of:

Profit & Loss Statements
Tax Returns (Federal)
Production and Collection Reports

Look for:

Trends in revenue and expenses
Consistency between tax returns and internal reports
Profitability after adjusting for seller’s perks (owner add-backs)

Pro Tip: Have a dental CPA help you interpret the numbers—especially to calculate adjusted EBITDA or cash flow.

Patient Base and Production Mix

You’re not just buying numbers—you’re buying patient relationships.

Review:

Number of active patients (typically defined as those seen in the last 12–24 months)
New patient flow
Procedure codes and production by type (restorative, hygiene, specialty, etc.)
Treatment referred out (growth opportunity!)

Ask: Is this a recall-driven practice or one dependent on new patient flow?

Hygiene Program and Recall System

The hygiene department is often the lifeblood of a general dental practice.

Request data on:

Hygiene production as a % of total production
Recall scheduling systems
Frequency of continuing care visits

Strong hygiene = stable recurring revenue.

Fee Schedules and Insurance Participation

Review the practice’s:

UCR fees (Usual, Customary, and Reasonable)
PPO participation and reimbursement rates
In-network plans and potential credentialing needs

Compare fees to regional benchmarks.

Ask if there are opportunities to drop low-paying plans post-sale.

Staffing and Payroll

A great team can make or break your first year of ownership.

Request:

Staff roster with roles, hours, and length of employment
Compensation and benefits
Employment agreements or contracts
Any known issues with morale or turnover

Be sure to factor salaries and benefits into your cash flow projections.

Lease, Real Estate, and Equipment

If the practice is in a leased space:

Review the current lease agreement
Check for assignment clauses or landlord approval requirements
Understand rent escalations and renewal options

If the real estate is for sale:

Get an independent appraisal
Consider whether owning or leasing makes more sense

Also inspect:

Equipment age and condition
Digital vs. analog systems
Technology you may want to upgrade

Legal and Compliance Review

Have your attorney review:

Corporate structure and ownership
Licensure and permits
HIPAA compliance and record keeping
Any pending legal issues, claims, or audits

It’s rare—but not unheard of—for legal or compliance concerns to surface during diligence. Better to uncover them now.

Watch for Red Flags

Be alert to signs of concern, such as:

Drastic year-over-year revenue drops
Incomplete patient records
Over-reliance on high-production procedures
High staff turnover
Unusually low net income despite high collections

These don’t always mean a deal-breaker—but they require deeper investigation.

Do the Work Now, Avoid Regret Later

Due diligence isn’t the most exciting part of buying a practice—but it is one of the most important. It’s your chance to validate the opportunity, reduce your risk, and plan your transition with eyes wide open.

The more thorough your review, the smoother your ownership journey will be.

Need Help Navigating the Due Diligence Process?

At American Practice Consultants, we specialize in helping buyers assess practices from every angle—financial, operational, and clinical. Let us help you make a confident decision.

You’re the New Boss — Now What? How to Retain Staff and Build Trust After Buying a Dental Practice

Patients Aren’t the Only Ones You’re Inheriting

When you buy a dental practice, you’re not just acquiring patients and equipment — you’re stepping into a team dynamic that already exists.

The front desk knows the patients by name.

The assistants understand the doctor’s clinical rhythm.

The hygienists are the heartbeat of the recall system.

These staff members are key to your success — and their decision to stay or leave can shape the trajectory of your ownership.

In this post, we’ll explore how to retain the existing team during your first 3–6 months of ownership, reduce staff anxiety, and build a healthy, high-performing office culture from Day One.

Why Staff Retention Should Be a Top Priority

During a transition, the biggest risk isn’t losing patients — it’s losing staff.

If staff members leave, you may face:

Disruption to patient experience
Slower onboarding and productivity
A drop in revenue and patient trust
A stressful start to your ownership journey

On the flip side, retaining staff leads to:

✅ Smoother transitions

✅ Higher patient retention

✅ Built-in operational knowledge

✅ Increased morale and performance

Start with Thoughtful Communication

One of the best ways to earn staff trust is to lead with transparency and empathy. After the sale is finalized (or close to it), schedule a staff meeting to introduce yourself and share your intentions.

What to Cover in Your First Meeting:

Acknowledge their loyalty to the practice
Share your appreciation for their work and commitment
Outline what’s not changing right away (keep systems steady at first)
Share your long-term goals and how they can grow with the practice

Avoid making sweeping changes in the first 30–90 days — stability is the name of the game.

Offer Incentives for Staff to Stay Through the Transition

Even if staff members like you, they may be unsure about staying. Offering transition incentives can give them financial and emotional motivation to stick around through the handoff.

💡 Retention Incentive Ideas:

Incentive	How It Works
Retention Bonus	Offer a bonus (e.g., $1,000–$2,000) to team members who remain with the practice for 90 or 180 days after the sale.
Welcome Gift or Note	A small gesture (like a handwritten card or gift card) shows appreciation and personalizes the transition.
One-on-One Time	Meet with each staff member individually to hear their concerns, goals, and feedback.
Job Security Agreement	Consider a short-term employment contract or formal letter of intent to stay with consistent pay and benefits.
Continuing Education (CE) Support	Offer to fund one CE course for each team member in the first 6 months to show investment in their growth.

Tip: Put any bonus or incentive structure in writing so expectations are clear.

Respect the Culture Before You Reinvent It

Every practice has its own workflow, rituals, and quirks. As the new owner, you may have your own ideas about how things should run — and that’s okay — but:

Culture change works best when it’s gradual and collaborative.

Start by observing:

How the team interacts
What systems are working
Where there’s tension or opportunity

Then invite feedback before making changes. This builds trust and helps staff feel heard — not steamrolled.

Encourage Open Dialogue and Feedback

Transitions can make staff feel insecure, even if nothing major is changing. Create space for honest conversation by:

Holding weekly or bi-weekly huddles
Inviting anonymous feedback
Asking, “What’s one thing I can do to support you right now?”

When staff feel seen and safe, they’re far more likely to stay — and to help your vision succeed.

Celebrate Small Wins Together

Even something as simple as:

Treating the team to lunch on your first Friday
Celebrating patient growth milestones
Shouting out great teamwork in morning huddles

…can go a long way toward building camaraderie and showing your appreciation.

Conclusion: You’re Not Just Taking Over a Practice — You’re Leading a Team

Buying a dental practice is a business decision, but succeeding as the new owner means becoming a trusted leader. By focusing on staff retention and morale from Day One, you set the tone for your practice culture, patient satisfaction, and long-term success.

When the team stays — and thrives — so does the practice.

Looking for Practices With Strong Teams and Growth Potential?

At American Practice Consultants, we help buyers find not just the right numbers — but the right people. We specialize in practices with strong, loyal teams and offer transition support strategies to help you hit the ground running.

📞 Contact us today for a confidential buyer consultation.

How to Support Your Team During a Practice Sale — And Why It Matters to the Buyer

Selling the Practice, Keeping the People

One of the most common concerns sellers face when preparing to transition out of ownership is:

“What will happen to my team?”

You’ve likely worked with your staff for years—or even decades. They’ve helped build your practice’s reputation, supported your clinical work, and developed trust with your patients. Now, as you prepare to sell, the goal is clear:

✅ Ensure a smooth transition

✅ Preserve practice continuity

✅ Retain the people who matter most

In this post, we’ll explore how sellers can help their team through the transition process—and offer practical incentives to encourage staff to stay with the new owner during the handoff period.

Why Staff Retention Is Crucial to a Successful Sale

From a buyer’s perspective, your team is a major part of what they’re investing in. A strong, experienced staff offers:

Operational continuity
Patient retention and trust
Institutional knowledge and systems experience
Reduced training and onboarding costs

If key staff members leave after the sale, it creates uncertainty, potential revenue loss, and buyer hesitation. Helping staff feel secure—and valued—can make or break a transition.

Start With Clear, Supportive Communication

Timing and tone matter when announcing the sale. Here’s how to manage it thoughtfully:

✅ When to Tell Your Team

Wait until the deal is well into due diligence or fully signed.
Avoid premature announcements that create anxiety or rumors.

✅ How to Frame the Message

Emphasize continuity of care for patients.
Share your confidence in the buyer’s clinical and business capabilities.
Reassure staff that their roles are important and likely to remain intact.

Sample language:

“This decision wasn’t made lightly—but it’s the right time for me. I’ve chosen a buyer who shares our values, respects our team, and is committed to maintaining the culture and care standards we’ve built together.”

Offer Retention Incentives to Support the Transition

To encourage staff to stay on for 3–6 months after the sale, consider offering structured retention bonuses or transition incentives. This is a small investment that protects the value of the sale and reassures the buyer.

💡 Incentive Ideas for Key Staff:

Incentive	Description
Retention Bonus	A one-time bonus paid after 90 or 180 days of continued employment with the new owner. Example: $1,000–$2,000 for full-time staff.
Transition Completion Bonus	Bonus for helping with onboarding, training, or system handoff tasks during the first 3 months post-sale.
Thank-You Gift or Trip	A personalized gift, spa day, or weekend getaway to show appreciation after the transition is complete.

Tip: Put incentive agreements in writing and communicate them clearly.

Involve the Buyer (Gradually and Strategically)

Once the sale is official (contracts signed), consider facilitating:

A casual meet-and-greet between the new owner and the team.
A staff Q&A session where the buyer shares their values and vision.
One-on-one shadowing time between the buyer and key team members.

This helps reduce fear of the unknown and fosters early trust.

Preserve (and Celebrate) Office Culture

Staff retention is about more than money—it’s about morale. As you wind down your leadership role, leave behind a culture of gratitude and stability.

Write personal thank-you notes or give small tokens of appreciation.
Host a casual farewell lunch or “practice transition celebration.”
Share stories, values, and vision with the buyer to preserve office identity.

Remember: Your attitude shapes theirs. A positive, optimistic outlook from you gives your team permission to feel hopeful about what’s next.

Conclusion: A Supported Team Is a Strong Legacy

Selling your practice is a major transition—not just for you, but for the people who helped you build it. With the right communication, thoughtful incentives, and cultural support, you can help your staff navigate the change with loyalty, confidence, and pride.

And in doing so, you increase your buyer’s confidence, support practice value, and protect the legacy you’ve worked so hard to build.

Thinking About Selling? Let’s Build a Transition Plan That Works for Everyone.

At American Practice Consultants, we help sellers craft thoughtful, comprehensive transition strategies—including staff retention plans that keep the heart of the practice intact.

📞 Contact us today for a confidential consultation.

Thinking About Practice Ownership? Here’s What Dental Students Should Be Doing Now

It’s Not Too Early to Start

If you’re in dental school—or just starting out as an associate—you might think owning a practice is years away. And you’re probably right. But here’s the truth most new dentists miss:

The most successful owners are the ones who start preparing long before they’re ready to buy.

You don’t need to know exactly when or where you’ll buy a practice, but by making a few smart moves now, you’ll dramatically improve your options when the time comes.

In this post, we’ll explore what dental students and early-career associates should be doing 3–5 years before ownership—so you’re not just ready, but confident, when the opportunity arrives.

Get Clear on Your Long-Term Vision

Practice ownership isn’t a one-size-fits-all goal. Start thinking about:

🏙️ Where you want to live and work
👥 Who you want to serve (families? high-end patients? underserved populations?)
💼 How you want to practice (solo? group? partnership?)
🛠️ What kind of practice culture, clinical philosophy, and technology matter to you

The clearer your vision, the easier it will be to recognize the right opportunity when it appears.

Pay Attention to the Business Side of Dentistry

Dental school is focused on clinical skills—but if you want to own a practice, you’ll need to understand:

Profit and loss statements
Overhead and collections
Staff management
Patient acquisition and retention
Insurance and fee structures

How to get started now:

Shadow or talk to private practice owners
Ask questions about how the office runs—not just the procedures
Read business books or listen to dental ownership podcasts

Keep Your Finances (and Credit) in Order

When you’re ready to buy, lenders will want to see:

A solid credit score
A history of responsible debt repayment
Reasonable savings for a down payment or emergency cushion

Pro tip: Start tracking your income and expenses now. Even a basic budget will help you build good financial habits that make borrowing easier later.

Choose Associate Roles That Build Ownership Skills

Not all associate positions are equal. As you enter the workforce, seek roles that offer:

Exposure to different procedures
Clear metrics (so you understand production and collections)
Mentorship from an owner who is willing to explain the why behind their decisions
A possible path to ownership (some associateships lead to partnerships or buyouts)

Every job is a chance to learn what you do and don’t want in your future practice.

Start Building Your Support Team

Practice ownership isn’t something you do alone. Start building relationships with professionals who specialize in dentistry:

Dental CPAs
Practice brokers
Commercial lenders
Practice consultants
Attorneys familiar with dental transactions

These experts will guide you through everything from financing to contracts to valuation when the time comes.

Stay Curious About Practices for Sale

Even if you’re not ready to buy, it helps to:

Look at practice listings
Review sample valuations
Ask brokers questions
Learn what different price ranges get you in different markets

This builds your market knowledge and gets you comfortable with the buying process.

Ownership Starts Before You’re Ready

You don’t need to know everything today—but if you start laying the groundwork now, you’ll be positioned to own the right practice in the right way, at the right time.

Ownership isn’t about perfection—it’s about preparation. And you’re already on the right path.

Thinking Ahead? Let’s Talk.

At American Practice Consultants, we work with future buyers at every stage—even if ownership is still a few years away. We’ll help you plan your path, understand the market, and be ready when the time is right.

📞 Contact us today to schedule a confidential buyer consultation, even if you’re still in school.

What Comes Next? Why Every Dentist Should Plan for Life After Dentistry

🦷 You’ve Built a Career—Now Build What’s Next

Selling your dental practice isn’t just a financial event. It’s a personal transition, too—one that marks the end of a deeply meaningful chapter of your life.

For decades, your identity may have been shaped by your role as “Doctor.” But once the sale is complete and your last patient has left the chair, a new question emerges:

What does life after dentistry look like for you?

In this post, we explore why it’s so important to plan for your post-practice life—and how intentional planning can turn a professional exit into a deeply fulfilling new beginning.

Why Post-Sale Planning Is Just as Important as the Sale Itself

Too many dentists spend months (even years) preparing for a sale, but almost no time thinking about what happens after the closing date.

The result?

A sense of loss or identity confusion
Boredom or restlessness
Regret over missed opportunities

Planning ahead gives you something to look forward to— and helps smooth the emotional adjustment that often comes after retirement or career transition.

Ask Yourself: What Do I Want This Next Chapter to Look Like?

There’s no one-size-fits-all answer. Every dentist’s version of “retirement” or “what’s next” is different. Take time to reflect on:

🌍 Lifestyle: Do you want to travel? Relocate? Spend more time with family?
💼 Work: Do you want to consult, teach, or work part-time?
📚 Growth: Are there hobbies, skills, or goals you’ve put off?
🤝 Legacy: Do you want to mentor young dentists or volunteer your expertise?

This isn’t just about filling time—it’s about redefining purpose.

Financial Freedom Isn’t the Whole Picture

Yes, the proceeds from selling your practice can provide security. But fulfillment comes from more than financial planning. Ask:

How will I stay mentally engaged?
How will I remain socially connected?
What will give me a sense of progress and meaning?

A successful transition includes emotional, social, and psychological preparation—not just a retirement account.

Common Paths for Life After Dentistry

Path	Examples
👨‍🏫 Education & Mentorship	Teaching at dental schools, mentoring younger dentists, CE facilitation
📈 Consulting	Assisting other dentists with clinical efficiency, leadership, or startup strategies
✈️ Travel & Leisure	Exploring the world, or simply enjoying more time with loved ones
🛠️ Hobbies & Projects	Woodworking, writing, photography, volunteering
💬 Speaking & Advocacy	Sharing insights at conferences or participating in dental associations

Tip: Explore these paths before you sell to ease the transition and create excitement about what’s ahead.

Planning Helps the Sale Go More Smoothly

When you have a clear plan for what’s next, you:

Approach the sale with more confidence and clarity
Are better prepared to let go emotionally
Provide buyers with a smoother, more professional transition

Buyers sense when sellers are “ready”—and that confidence helps build trust during negotiations and handover.

You’re Not Stepping Away—You’re Stepping Forward

It’s natural to feel some sadness about letting go of a practice you’ve poured your heart into. But selling isn’t the end of your story. It’s the beginning of a new chapter, one where you get to decide:

How to spend your time
What impact you want to make
Who you want to become outside of clinical work

The freedom you’ve worked for is finally yours to shape.

Begin With the End in Mind

Selling your dental practice is one of the most important decisions of your career. But the success of that transition depends on what comes after. By thinking about your life after dentistry before you sell, you’ll set yourself up for a smoother transition—and a more rewarding future.

At American Practice Consultants, we help sellers navigate the full journey—from valuation to closing, and even into the next phase of life.

Ready to Start the Next Chapter? Let’s Talk.

If you’re thinking about selling your dental practice—or even just planning ahead—we’re here to guide you. Let’s talk about your goals, your timeline, and how to move forward with clarity and confidence.