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What Makes a Dental Practice “Turnkey”? (And Why That Matters to Buyers)

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What Does “Turnkey” Really Mean?

If you’re preparing to sell your dental practice, you’ve probably heard the term “turnkey” thrown around by brokers, buyers, and lenders. But what does it really mean—and why does it matter?

In short, a turnkey dental practice is one that’s ready for a new owner to walk in, hang their license, and start seeing patients immediately with minimal disruption. No major upgrades. No staffing overhauls. No patient communication issues. Just a smooth transition.

— Think of a turnkey practice like a well-maintained car: the buyer just needs the keys—they don’t want to rebuild the engine.

Why Buyers Love Turnkey Practices

From the buyer’s point of view, a turnkey practice reduces risk, stress, and startup costs. It signals that:

  • The practice has been well-managed

  • Systems and workflows are already in place

  • Staff are trained, retained, and engaged

  • Patients are accustomed to the structure and ready to continue care

  • Cash flow will continue from day one

In a competitive market, turnkey practices command stronger interest and often sell faster—sometimes with better offers.

What Makes a Dental Practice Truly Turnkey?

Here’s what buyers are really looking for:

1. Clean and Organized Financial Records

Buyers and banks need clear, reliable financials. That includes:

  • 3 years of tax returns and profit & loss statements

  • Production and collection reports

  • Fee schedules and insurance participation lists

  • Payroll and overhead details

  • A/R aging reports

If it takes weeks to track down basic numbers, buyers will lose confidence—or walk away.

2. Trained and Stable Staff

Turnkey doesn’t just mean equipment—it means people. Buyers look for:

  • Low staff turnover

  • Clearly defined roles

  • Employees willing to stay through the transition (at least 3–6 months)

  • A positive, professional team culture

Pro tip: Many sellers offer a small retention bonus to staff who stay through a set period post-sale. It’s a smart investment.

3. Efficient Systems and Workflows

Buyers want to know the practice runs smoothly. That means:

  • Reliable scheduling and billing systems

  • Digital charting and x-rays (if possible)

  • A recall system that works

  • Software and workflows the team can explain and use effectively

Even if your systems are basic, consistency matters more than flash.

4. Clean, Well-Maintained Equipment

You don’t need the latest CBCT scanner, but your operatories should be:

  • Fully equipped and operational

  • Clean and up to infection control standards

  • Free of broken or outdated equipment

Buyers want to start working—not fix suction lines on day one.

5. A Lease or Real Estate Situation That’s Ready

If you lease your space, make sure the lease is assignable or renewable. If you own the building, decide before listing whether you want to sell or lease it.

Buyers don’t want to negotiate a lease from scratch at the last minute. A clear plan builds confidence.

6. Patient Retention Plan

The goodwill of your practice is built on patient relationships. Buyers love to see:

  • A drafted patient letter announcing the transition

  • Planned handoff messaging from you to your patients

  • Continued hygiene scheduling

  • A plan for insurance credentialing support

It shows you’re invested in making the transition smooth—for patients and the buyer.

“Almost Turnkey” vs. “Truly Turnkey”

A practice that looks great on paper but is disorganized behind the scenes can scare off buyers. Likewise, a practice that’s a bit dated—but has great staff, solid systems, and loyal patients—might be more “turnkey” than you think.

Ask yourself:

  • If I handed over the keys tomorrow, could a new dentist succeed here without reinventing everything?

  • Or would they have to clean up records, restaff, or fix broken systems first?

Final Thoughts: Turnkey Means Confidence

Buyers want to walk into a practice that feels ready. They’re not just buying collections—they’re buying peace of mind, momentum, and the ability to hit the ground running.

— The more turnkey your practice is, the faster it can sell—and the smoother the transition will be for everyone involved.

Want Help Preparing Your Practice for Sale?

At American Practice Consultants, we specialize in helping sellers get their practices “buyer-ready”—without overinvesting or overthinking it. From document prep to positioning, we’ll help you highlight what makes your practice turnkey.

📞 Contact us today for a confidential consultation.

Your First Practice Purchase: How to Spot a Good Deal (And Avoid a Bad One)

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Starting Your Ownership Journey? Here’s What You Need to Know

Buying your first dental practice is one of the most exciting—and intimidating—milestones in your career. You’ve probably spent years dreaming about being your own boss, controlling your schedule, and building something that’s truly yours.

But here’s the catch:

Not every “profitable” practice is a good deal. And not every fixer-upper is a bad one.

This post will help you look beyond surface-level numbers and understand the true value and potential of a dental practice—so you can buy with confidence and avoid expensive mistakes.

What Looks Like a Good Deal (But Might Not Be)

Let’s start with a few red flags disguised as selling points:

“High Gross Collections”

A practice collecting $1.2M may sound great—until you realize the overhead is 75%, the seller refers out most procedures, and staff turnover is high. Collections are only part of the story.

“Significant Price Reduction!”

If a practice has been sitting on the market or the price has dropped dramatically, ask why. Is there outdated equipment? A shrinking patient base? A lease issue?

“Modern Technology”

New equipment is great—but don’t let it distract you from more important factors like active patients, hygiene recall, and staffing stability.

  • Remember: A deal is only good if the fundamentals are strong.

What REALLY Makes a Practice a Good Deal

Here’s what experienced buyers and dental brokers look for:

1. Consistent, Well-Documented Revenue

Look for 3–5 years of stable or growing collections, with clear financials (P&Ls, tax returns). Watch for red flags like sudden spikes or unexplained dips.

2. Healthy Hygiene Department

Hygiene production should make up 25–35% of total production. A strong recall program means loyal patients and predictable revenue.

3. Staff Stability

Long-term employees = smoother transitions. High turnover = potential headaches. Ask how long the team has been in place and how they’re compensated.

4. Reasonable Overhead

Overhead (excluding doctor compensation) should ideally be in the 55–65% range. Anything significantly higher might hurt profitability.

5. Good Location and Lease Terms

Is the practice easy to access? Are there growth opportunities nearby? Is the lease assignable? Watch out for balloon payments or expiring leases without renewal options.

6. Seller Willing to Assist in Transition

A cooperative seller who’s willing to stay on for a few months post-sale can help retain patients and ease staff concerns.

Bonus: Questions to Ask During Due Diligence

  • How many active patients are there (patients seen in the last 12–18 months)?

  • What procedures does the seller perform in-house vs. refer out?

  • What’s the payer mix (PPO, FFS, Medicaid)?

  • Are there any large corporate competitors nearby?

  • What’s the equipment age and condition?

Watch Out for These First-Time Buyer Mistakes

  • Falling in love with the décor and ignoring the financials

  • Overestimating your ability to “fix” a bad practice

  • Underestimating staff transition challenges

  • Overpaying for goodwill without proof of patient loyalty

  • Failing to hire a dental-specific CPA and attorney during the process

The best buyers stay curious, skeptical, and supported by the right team.

A Good Deal Isn’t Just About Price

It’s about value, momentum, and potential. A $650,000 practice with low overhead, a loyal staff, and consistent patient flow might be far better than a $1.3M practice with high attrition and chaos behind the scenes.

Ask yourself:

  • Can I realistically step into this role and succeed?

  • Will this practice support my lifestyle and loan payments?

  • Does the staff and patient base align with my clinical and leadership style?

Final Thoughts: Make Your First Practice a Launchpad, Not a Lesson

The first practice you buy sets the tone for your entire career. Don’t rush. Don’t guess. And don’t assume bigger is always better.

With the right team, a clear process, and a healthy dose of due diligence, you can make a decision that sets you up for years of personal, professional, and financial success.

Need Help Finding and Evaluating the Right Practice?

At American Practice Consultants, we specialize in helping first-time buyers navigate the process with confidence. From reviewing financials to evaluating culture and location, we’re here to make sure your first deal is a smart one.

📞 Schedule a no-obligation buyer consultation today.

What Buyers Overlook: How a Dental Practice’s Culture Impacts Your Success

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Beyond the Numbers: Why Culture Matters More Than You Think

When buyers evaluate a dental practice, they usually focus on collections, overhead, active patients, and equipment. These are essential indicators of value—but they don’t tell the whole story.

What’s often overlooked?

  •  The culture of the practice.

Culture isn’t something you’ll find in a P&L statement, but it can directly impact:

  • Staff retention

  • Patient satisfaction

  • Your leadership experience

  • Long-term growth

The truth is, culture can be the reason a practice thrives—or the reason it falls apart after a transition.

What Do We Mean by “Culture”?

In a dental office, culture refers to the personality of the practice. It’s shaped by:

  • How the staff interacts with each other

  • How the doctor communicates with patients

  • The pace and style of appointments

  • Office traditions, systems, and even jokes

  • The unspoken “way things are done here”

You may be buying charts and chairs—but you’re inheriting a team, a tone, and a rhythm.

Signs of a Healthy Practice Culture

Before making an offer, look for these signs of a positive, stable culture:

  • Low staff turnover: Long-tenured employees often mean strong relationships and trust.

  • Clear roles and responsibilities: Do team members know what’s expected of them?

  • Respectful communication: Between the doctor, staff, and patients.

  • Staff engagement: Are people just punching a clock—or do they care?

  • A well-run morning huddle or team meeting: It shows systems are in place.

  • Positive patient feedback: Online reviews and word-of-mouth matter.

You’ll feel the culture the moment you walk in—trust your instincts.

What Happens When Culture is Ignored?

Even when the numbers look great, buyers who don’t consider culture risk:

  • Losing staff quickly after closing

  • Disrupting patient experience and satisfaction

  • Clashing with the team’s way of working

  • Feeling isolated or unwelcome as a leader

  • Struggling to implement change

You may inherit a high-producing practice—but if the culture breaks down, so will performance.

How to Assess Culture During Due Diligence

1. Talk to the Seller About Leadership Style

How hands-on are they? Do they micromanage or delegate? This affects what the staff is used to.

2. Ask How Conflict Is Handled

Do problems get addressed directly, or are they swept under the rug?

3. Observe Interactions Quietly

Are staff members friendly to one another? Does the front desk greet patients by name? These small moments tell you a lot.

4. Inquire About Staff Tenure and Roles

A long-tenured hygienist or front desk manager can be your greatest asset—or your biggest challenge if not handled with care.

5. Ask the Seller What the Team Values Most

Flexibility? Autonomy? Structure? These clues help you lead effectively post-close.

Can You Change the Culture After You Buy?

Yes—but with patience.

Culture doesn’t shift overnight, especially if staff have been together for years. Instead of trying to overhaul everything, consider:

  • Listening first: Conduct one-on-one meetings with each team member.

  • Preserving what works: Keep systems that are functional. Change comes later.

  • Making staff part of the process: Invite their input before implementing new tools or policies.

  • Communicating clearly: Share your philosophy and vision—don’t leave them guessing.

  • Introducing gradual improvements: Avoid overwhelming people with sweeping changes.

Remember, you’re not just becoming the owner—you’re becoming the leader.

Final Thoughts: Culture Can’t Be Quantified—But It Can Make or Break You

Before you buy a practice, take time to understand the people behind the numbers. You’re not just purchasing revenue—you’re stepping into a community.

A good cultural fit creates smoother transitions, higher retention, and long-term growth.

A bad fit? It can drain your energy, frustrate your staff, and stall your momentum.

  • As you evaluate practices, ask yourself: “Can I see myself thriving here?”

If the answer is yes, the numbers may be the easy part.

Need Help Finding the Right Fit?

At American Practice Consultants, we help buyers look beyond the spreadsheets. We guide you through not only financial due diligence—but also the interpersonal factors that shape long-term success.

📞 Contact us today to start your journey toward practice ownership—with clarity, confidence, and culture in mind.

Beyond the Numbers: What Buyers Should Ask the Seller During Due Diligence

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Why the Numbers Only Tell Half the Story

When buying a dental practice, reviewing financial reports, production data, and patient counts is essential. But the numbers alone don’t paint the full picture.

What you ask the seller directly during due diligence can reveal critical insights into the practice’s operations, culture, challenges, and growth potential—things no spreadsheet will show you.

  • The right questions can help you avoid surprises, build trust with the seller, and start your ownership journey with clarity and confidence.

In this post, we’ll outline the top questions buyers should ask the seller during due diligence—plus tips for how to ask them in a way that builds rapport and supports a smooth transition.

“Why Are You Selling Now?”

This simple question opens the door to a bigger conversation. Is the seller:

  • Ready to retire?

  • Burned out?

  • Moving away?

  • Concerned about upcoming changes?

Their answer can offer important context—and sometimes, opportunities. For example, if they’ve been coasting toward retirement, there may be room for operational or marketing improvements.

“What Procedures Do You Refer Out—and Why?”

Understanding what’s being referred out can reveal untapped revenue potential.

Ask:

  • Do you refer out endo, extractions, implants, perio surgery, or ortho?

  • Is it due to skill preference, time constraints, or equipment limitations?

If you’re comfortable with those procedures (or plan to bring in a specialist), this can signal significant room to grow production post-sale.

“Tell Me About Your Team.”

Staff dynamics are a huge part of what you’re buying. Ask:

  • Who are the key team members?

  • How long have they been with the practice?

  • Are there any upcoming retirements or staffing concerns?

  • What roles are essential to day-to-day operations?

Also inquire about compensation, bonuses, and overall team culture. A stable, experienced staff can make your transition much easier.

“How Do You Handle Recall and Hygiene Scheduling?”

The strength of the recall system often reflects long-term patient retention and production stability.

Ask:

  • Is hygiene fully booked weeks out, or are there open slots?

  • Do you have a formal recall system or automation in place?

  • How often do patients return for cleanings?

  • How far out do you schedule preventive visits?

This gives you insight into how well the practice supports recurring revenue and patient loyalty.

“What Marketing Efforts Are You Currently Using?”

Many retiring sellers scale back or eliminate marketing. That’s not always a bad thing—it can mean room to grow.

Ask:

  • Do you do any online or offline marketing?

  • Do you track where new patients come from?

  • Is there a website or social media presence?

  • Are you getting referrals from other providers?

If the practice has grown organically or by reputation alone, even a small marketing effort could yield big results under your ownership.

“What’s Your Approach to Treatment Planning and Case Acceptance?”

Clinical philosophy matters. Understanding how the seller recommends treatment can help you assess patient expectations and communication norms.

Ask:

  • Are you more conservative or comprehensive with treatment planning?

  • Do you use intraoral cameras or other patient education tools?

  • How do you present larger cases?

This will help you plan how to maintain trust with existing patients—or shift communication strategies over time.

“Are There Any Known Equipment or Facility Issues?”

This isn’t just about age of equipment—it’s about function and future costs.

Ask:

  • What equipment is leased, and what’s owned?

  • Are there any maintenance issues or needed replacements?

  • How old are the major systems (e.g., compressor, vacuum, sensors)?

A good seller will be honest. Catching this early helps you budget wisely and may support negotiations.

“What Would You Improve If You Were Staying?”

This is one of the most revealing questions you can ask. Sellers often know where the practice could improve—but didn’t want to invest the time or money themselves.

You might hear:

  • “I’d upgrade the technology.”

  • “I’d extend hours or offer more payment options.”

  • “I’d update the website and start doing social media.”

These insights can become part of your growth plan post-sale.

“What Should I Expect in My First 90 Days?”

This gives the seller a chance to coach you a bit and set realistic expectations.

Ask:

  • How quickly do you expect patients and staff to adjust?

  • What’s the best way to introduce myself to patients?

  • Are there any quirks or “unwritten rules” I should know about?

A seller who wants a smooth transition will be happy to offer this perspective.

Ask Questions That Build a Foundation

During due diligence, don’t be afraid to ask more than just what’s on paper. Smart, respectful questions show the seller that you’re serious—and they help you walk into your new role prepared.

  • After all, you’re not just buying numbers—you’re stepping into a leadership role. Understanding the story behind the stats helps you lead with confidence.

Ready to Start Your Due Diligence Journey?

At American Practice Consultants, we help dental buyers navigate every step of the process—from asking the right questions to interpreting the answers.

Contact us today for a confidential buyer consultation and start your transition with clarity.

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

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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.

Contact us today to schedule a confidential buyer consultation.

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