What costs come on top of the price when you buy a dental practice?

The price on the offer is rarely the full cheque. Buyers who budget only for that number often find themselves short in the first months, when the practice still needs paying for. A better habit is to list every cost around the purchase early, ask the seller and your advisers what each is likely to involve, and share the full picture with your lender.

Professional help

Plan for your lawyer, your accountant and, where it is used, an independent review of the practice’s financial picture. Ask each adviser how they bill and what is outside the quote. Experienced advisers will also tell you when a step is worth doing. Do this before you sign a letter of intent, so the cost of due diligence is not a surprise halfway through.

Cash for the first weeks

Payments from patients and insurers do not arrive the day treatment happens. In the early weeks you still pay staff, suppliers and rent. Ask your lender whether working capital can be part of the financing, and ask your accountant how much breathing room you need given how the practice bills.

Equipment, systems and premises

• Equipment: ask when sterilization units, compressors and imaging machines were last serviced and what the maintenance plan is.
• Software: ask whether licences transfer, what the vendor charges, and how patient records are moved.
• Lease: ask what the landlord requires on a change of ownership, including any deposit.
• Supplies: ask whether inventory is included in the price or bought on top.

The transition period

Most sales include a handover, with the seller introducing you to patients and staff. Ask how long it lasts, whether the seller is paid for it, and what happens if production dips while patients adjust. The buyer checklist can help you turn these questions into a working list.