Are You Making Financing Mistakes in Dental Practice Acquisitions?

In this episode of the Shared Practices Podcast, Dr. Andrew Clingan sits down with Steve Steinbrunner from Provide, Inc. to map out the financial realities of dental practice acquisitions and long-term dental practice ownership. Understanding exactly how a bank evaluates your risk profile is a critical piece of dental practice management, whether you are buying your first clinic or investing in a multi-doctor commercial real estate project.

Master Your Initial Financing

Do not aggressively pay down your student loans at the expense of your personal savings.

Banks care significantly more about your liquidity—your cash on hand minus any revolving credit card debt—than your total student loan balance when funding dental practice acquisitions.

General dentists should aim for at least six months of associate experience to prove clinical production capability, though specialists can often secure funding immediately out of residency.

Include consulting or advisory fees in your initial loan request. Banks view professional business coaching as a core part of your dental business strategies that reduces risk, and they will gladly finance it.

Leverage "Ready to Grow" Clinics

If a target practice is underperforming and lacks traditional cash flow, ask your lender about a jumpstart loan to drive sustainable dental practice growth.

These unique loans treat the acquisition like a slow-growth startup, potentially offering up to $500,000 for the purchase alongside additional working capital and interest-only periods to boost early dental practice profitability.

Scale with Commercial Real Estate

Never prioritize owning the real estate over the health and location of the actual business during early dental practice acquisitions.

Once your practice is established, you can leverage the equity built up in the business to secure 100% financing for commercial real estate or ground-up construction without needing a massive cash down payment.