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.

Navigating the complexities of dental practice ownership requires a specialized team. Surround yourself with dental-specific lenders, attorneys, CPAs, and advisors to ensure you make objective, data-driven decisions at every stage of your career.

Ready to take the next step in your dental practice journey? Visit https://sharedpractices.com to learn more about our Buyer Representation and Coaching services, designed to help dentists buy, grow, and optimize profitable practices. You can also use our Free Look to evaluate dental practice opportunities with real data before making a decision. For daily Dental Moneyball insights, strategy tips, and updates, follow us across our social channels.

Disclaimer: Provide, Inc. is a wholly owned subsidiary of Fifth Third Bank, National Association. All opinions expressed by the Provide employee participant are solely their current opinions and do not reflect the opinions of Provide, its affiliates, or Fifth Third Bank. The Provide employee participant’s opinions are based on information they consider reliable, but neither Provide, its affiliates nor Fifth Third Bank warrants their completeness or accuracy, and they should not be relied upon as such. This content is for informational purposes and does not constitute the rendering of legal, accounting, tax, or investment advice, or other professional services by Provide or any of its affiliates. Please consult with appropriate professionals regarding your individual circumstances. All lending is subject to review and approval. https://www.getprovide.com/

Are you currently focused on building liquidity for your first acquisition, or are you exploring real estate expansion for an existing practice?