Category Archives: Financial Support

Your Practice Appraisal Is Like an X-Ray: See the Full Picture Before You Sell

You Wouldn’t Treat Without an X-Ray. Why Sell Without an Appraisal?

As a dentist, you’d never diagnose a problem without the right tools. Before recommending treatment, you rely on x-rays to see what the eye can’t—bone loss, hidden decay, fractures, infection.

— The same logic applies to selling your dental practice.

An appraisal is your practice’s x-ray. It reveals the full picture—not just what’s happening on the surface, but the deeper financial, operational, and market-based factors that influence your value.

A Pro Forma Is the Treatment Plan—But an Appraisal Is the X-Ray

Sometimes dentists think an appraisal is going to spell out exactly how a deal will be structured, what the sale terms will be, or how much they’ll take home after taxes. That’s not the job of the appraisal.

Instead, think of it this way:

  • Appraisal = Diagnostic Imaging

    (Unbiased look at what’s happening in the practice)

  • Pro Forma = Treatment Plan

    (How the transition might be structured once a buyer is involved)

Just like you wouldn’t skip the imaging and go straight to the procedure, you shouldn’t skip the appraisal and assume the outcome of a future sale.

What a Dental Practice Appraisal Tells You

A well-done appraisal gives you:

  • Fair Market Value of Your Practice
  • Breakdown of income streams (doctor vs hygiene)
  • Adjusted earnings after normalizing expenses
  • Valuation of equipment, goodwill, and other assets
  • Benchmark comparisons to similar practices
  • Insight into what a buyer or bank would see

It’s not a generic estimate. It’s a data-driven, market-tested assessment of what your practice is really worth.

Why This Matters—Even If You’re Not Selling Today

Even if you’re a few years away from retiring or transitioning, having an appraisal now can help you:

  • Set realistic expectations

  • Identify weak spots before they impact value

  • Make strategic upgrades or clean up financials

  • Plan for taxes, retirement, or associate transitions

  • Negotiate better with DSOs or private buyers in the future

— Dentists who plan ahead nearly always achieve better outcomes when they do sell—because they’ve had time to prepare.

What Happens Without an Appraisal?

Skipping this step can lead to:

  • Overpricing your practice and scaring off buyers

  • Underpricing it and leaving money on the table

  • Getting blindsided by issues during buyer due diligence

  • Delays, renegotiations, or failed deals

  • Avoidable stress in a process that’s already emotional

An appraisal isn’t just helpful. It’s essential.

Final Thoughts: Get the Full Picture Before You Decide

Your dental practice is likely one of your most valuable assets. Whether you plan to sell this year, in five years, or just want to understand where you stand—an appraisal gives you clarity, confidence, and control.

— Just like you’d never treat without a diagnosis, don’t plan your future without knowing what your practice is really worth.

Ready for a Confidential Appraisal?

At American Practice Consultants, we provide dental practice appraisals that are:

  • Thorough and unbiased
  • Backed by real-world market data
  • Designed for both sellers and strategic planners

No pressure. No sales pitch. Just clarity.

Contact us today to schedule your confidential dental practice appraisal.


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Would you like a companion one-pager that summarizes the “X-Ray vs. Treatment Plan” analogy to use in emails, presentations, or handouts?

How to Secure Financing for Your Dental Practice Purchase

Buying a dental practice is a major milestone for any dentist looking to transition into ownership. Whether you’re a recent graduate or an associate ready to take the next step, securing financing is a critical part of the process. In this guide, we’ll walk you through how to obtain financing to purchase a dental practice and ensure a smooth transition to ownership.

Why Financing is Key for Dental Practice Acquisition

Most dentists don’t have the capital on hand to purchase a practice outright. That’s where financing options come in, providing the necessary funds to acquire a practice, cover operational costs, and ensure a strong start. Lenders are typically more willing to finance dental practices because of the industry’s stability and profitability.

Step 1: Assess Your Financial Readiness

Before approaching lenders, evaluate your financial health:

  • Credit Score: A strong credit score (typically 680 or higher) improves your loan approval chances.
  • Debt-to-Income Ratio: Lenders prefer a manageable debt load, especially student loans.  However, don’t get discouraged if you are carrying a lot of student debt. Lenders that specialize in the dental industry understand student debt and the low failure rate of dental practices, so will still loan 100% of the purchase price if the numbers make sense.
  • Savings and Liquidity: Having some capital for down payments and working capital is advantageous.
  • Business Plan: A well-structured plan outlining projected revenue and expenses strengthens your application.

Step 2: Explore Financing Options

There are several ways to secure financing for a dental practice:

  1. Traditional Bank Loans – Many banks offer specialized loans for dental professionals with competitive rates and flexible terms.
  2. SBA Loans – The U.S. Small Business Administration (SBA) provides loans with lower down payments and longer repayment terms.
  3. Specialized Healthcare Lenders – Some lenders cater specifically to dentists and offer tailored loan products.
  4. Seller Financing – In some cases, the seller may offer to finance part of the purchase price, reducing the amount you need to borrow from a lender.
  5. Alternative Lenders – Online lenders and private investors may provide financing options with quicker approvals but higher interest rates.

Step 3: Gather the Necessary Documentation

To apply for financing, you’ll need to prepare essential documents, including:

  • Personal and business tax returns (last 2-3 years)
  • Personal financial statements
  • Practice valuation report
  • Profit and loss statements of the target practice
  • Purchase agreement
  • Business plan with financial projections

Step 4: Get Pre-Qualified and Compare Offers

Getting pre-qualified for a loan will give you a clear idea of your borrowing capacity and financial terms. Compare offers from multiple lenders, looking at:

  • Interest rates
  • Loan terms (repayment period, down payment requirements)
  • Fees and closing costs
  • Prepayment penalties
  • Other requirements, such has consolidating all of your accounts and banking needs with the lender

Step 5: Close the Deal and Transition Smoothly

Once you secure financing, work with your attorney and other advisors to finalize the purchase agreement. Ensure that you have a transition plan in place, including:

  • Patient retention strategies
  • Staff onboarding and training
  • Marketing efforts to introduce yourself as the new owner
  • Financial tracking and cash flow management

Final Thoughts

Securing financing for a dental practice purchase may seem daunting, but with the right preparation and guidance, it can be a smooth process. Working with experienced dental practice brokers, financial advisors, and lenders specializing in dental acquisitions can help you navigate the complexities of financing and ownership transition.

Are you considering purchasing a dental practice in New Jersey or Eastern Pennsylvania? Our team at American Practice Consultants specializes in connecting buyers with the right opportunities and introducing them to lenders in the region that specialize in the dental industry. Contact us today to take the first step toward ownership!

 

kevin-cooper

Introducing Kevin P. Cooper as the New Owner

Elevating Dental Practice Transitions in Eastern Pennsylvania and New Jersey

Moorestown, NJ – American Practice Consultants, Inc., a leading dental broker and practice transitions company serving Eastern Pennsylvania and New Jersey, is delighted to announce the appointment of Kevin P. Cooper as the new owner, effective May 1st, 2023. With extensive experience in assisting dentists buy and sell dental practices, Kevin has been an integral part of the company since 2017, working alongside his father, Philip A. Cooper, DMD.

Dr. Cooper established American Practice Consultants in 1985, recognizing the need for expert guidance in dental practice transitions. Through years of dedication, he has successfully built the business from the ground up, completing numerous buy and sell transactions within the region. Dental professionals trust his expertise and rely on his proven track record.

Drawing upon over 16 years in the corporate world, where he excelled at Gartner in Stamford, CT, and the American Board of Internal Medicine in Philadelphia, PA, Kevin brings a unique blend of customer service, business acumen, and healthcare knowledge to his new role. He is enthusiastic about continuing to assist dentists in buying, selling, and valuing dental practices. Dental professionals can leverage Kevin’s expertise and background to navigate the complexities of dental practice transitions seamlessly.

While Kevin assumes ownership, Phil will remain involved in all aspects of the business, ensuring a smooth transition. Phil’s unparalleled market knowledge is invaluable, and he is excited to witness Kevin take charge of the day-to-day operations. Together, they will continue to deliver exceptional dental broker services and support to professionals across Eastern Pennsylvania and New Jersey.

American Practice Consultants, Inc. remains committed to providing unparalleled dental practice brokerage and transition services. Under Kevin’s leadership, the company is poised to further enhance its brokerage service offerings, catering to the specific needs of dental professionals seeking to buy or sell a dental practice. As a trusted dental practice broker in Eastern Pennsylvania and New Jersey, American Practice Consultants is dedicated to delivering results.

Whether you are a dentist looking to buy a dental practice or considering selling your current practice, American Practice Consultants, Inc. is your go-to partner. Contact us today to experience the expertise and personalized guidance that sets us apart as the premier dental practice broker in Eastern Pennsylvania and New Jersey.