Caveat Dentist: What No One Told You About Buying a Practice

By Luke Kapper, MBA

So, you’re thinking about making the leap from associate to practice owner? Congrats—you’ve officially entered the deep end of the dental internet. You’re probably binging podcasts at 2x speed, devouring every article with the phrase “practice acquisition” in it, and interrogating every friend who’s ever owned a handpiece about what to do (and what definitely not to do) when buying a practice.

But before you dive headfirst into practice ownership, let’s hit pause for a quick reality check.

The Reality of Practice Ownership

Caveat emptor—buyer beware. This move isn’t just big; it’s life-altering. We’re talking right up there with buying a house, signing student loan paperwork, or deciding what tattoo adequately commemorates the purchase. (Okay, maybe not the last one—but you get the idea.)

If this article landed in your lap during your search for answers, welcome. You’re in the right place. Let’s cut through the noise, debunk a few common myths, and help you step into ownership with eyes wide open and confidence intact.

Myth 1: I Should Buy a Dental Practice Because Dental Loans Never Go Bad

Let’s bust this myth with a little dose of truth and a pinch of reality.

Yes, banks love dentists. A well-run dental practice can boast juicy margins of 35-50%, and even a wobbly economy can’t stop people from seeking help when they’ve got a toothache. But here’s the part no one puts in the glossy brochure: Just because dentists repay their loans doesn’t mean they’re thriving.

Many practices scrape by with gritted teeth (pun intended). When things go sideways, repayment often involves draining retirement accounts, juggling high-interest loans, or returning to associate work just to stay afloat.

If someone who benefits from your purchase starts citing the “success rate” of dental loans, that’s your cue to raise an eyebrow. Buying a practice isn’t like buying a well-oiled machine; it’s more like adopting a moody teenager—you never know what you’re getting until you’re in the thick of it.

With the current economic forecast, dentistry’s historically healthy margins are getting leaner daily. So take your time, do the homework, and build the right team.

Lesson: Due diligence isn’t just a suggestion–it’s survival.

Myth 2: My Bank Declined My Loan… So This Must Be a Bad Practice

Not so fast. Buying a dental practice isn’t like buying a house. There’s no “pre-approval” magic letter. Banks are balancing two big puzzle pieces: you (the borrower) and the practice (the asset). A strong borrower can still be denied due to the practice’s risk profile.

If one bank passes, it’s a sign to try another lender. Banks have their own credit boxes and risk tolerances. The right bank is the one that aligns with your vision.

Lesson: One bank’s “no” isn’t the end of the road.

Myth 3: I’m Nervous About Running a Practice, so a Partnership Is Probably My Best Option

Let’s talk about partnerships. In dentistry, the “ships” that often sink are relationships, entrepreneurships, and partnerships.

Partnerships can complicate decisions, create conflicts, and turn into a tug-of-war between personal priorities. A stable solo practice often beats a complex partnership. If you’re going to bet on anyone, bet on yourself.

If the leap from associate to owner feels scary, that’s normal. But don’t make decisions out of fear. Hire a good consultant instead to build your confidence and teach you the ropes.

Lesson: Simplicity beats complexity.

Final Thoughts: Choose Wisely, Doc

The journey to practice ownership isn’t just about the numbers. It’s about strategy, preparation, and having a clear vision of what you want. Keep your focus, learn from others, and don’t rush.

If this article can help you avoid even one “I should’ve known better” moment, that’s a win. And if you do end up thriving, feel free to call me with the good news. I’d love to hear it.