1. Accurately Assessing the Value of the Practice

Before making an offer, it's crucial to establish a clear and accurate valuation of the dental practice in question. This includes both tangible assets, such as dental chairs, diagnostic equipment, IT infrastructure, and property (if owned), as well as intangible assets like goodwill, patient loyalty, brand reputation, and the skill set of the existing team. An independent valuation conducted by a professional with experience in dental acquisitions can help determine whether the asking price reflects the practice’s true market value and long-term earning potential. It's important to look beyond surface-level figures and evaluate patient retention rates, appointment backlogs, referral sources, and income diversity (NHS vs. private work) as these will affect revenue stability.

EP Finance insight: We can support your acquisition with expert financial guidance and connect you with specialist advisors who understand the dental sector. With commercial acquisition finance and unsecured business loans, we help ensure you have the capital to negotiate confidently and make an informed, competitive offer.

2. Reviewing Financial Performance and Liabilities

Once a valuation has been established, the next critical step is to assess the practice’s financial health. This involves conducting a thorough review of historical accounts, including profit and loss statements, cash flow reports, balance sheets, and tax returns for the past three to five years. Pay close attention to revenue consistency, profitability margins, recurring costs, and the patient treatment mix. Additionally, identify any existing liabilities such as equipment finance agreements, property leases, or tax obligations that may be transferred with the sale. Understanding these numbers will not only help you evaluate the investment risk but also inform your decision on how much financing you’ll require.

EP Finance insight: We help you interpret key financial documents, work out your borrowing requirements, and assess how different finance products could support the deal. With tailored cash flow finance or practice loans, you can cover purchase costs while maintaining liquidity for the transition period.

3. Planning for Transition and Premises Upgrades

Even with an established patient base, you may need to make changes once you take over the practice. Whether you're rebranding, renovating the premises, updating dental chairs or software, or expanding treatment rooms, these costs can add up quickly. Additionally, compliance with Care Quality Commission (CQC) standards may require updates to equipment or facility layout. Transition planning should include all one-off expenses such as refurbishment, marketing, signage, IT systems, and patient communications to ensure a smooth handover and to maintain trust among existing patients.

EP Finance insight: We offer asset finance and equipment leasing to help you fund the purchase or upgrade of dental equipment and practice fit-outs. These options allow you to preserve your working capital while spreading the cost over manageable monthly repayments.

4. Securing the Right Finance to Fund the Purchase

In most cases, acquiring a dental practice requires external financing to cover the acquisition cost and associated transition expenses. The type and structure of finance will depend on your individual circumstances, such as your experience, the practice’s value, your deposit, and your business plan. At EP Finance, we offer access to a wide range of funding solutions including secured practice loans, unsecured loans, and commercial property finance. We work closely with you to assess your affordability, help you prepare documentation, and negotiate favourable terms with lenders that understand the healthcare sector.

EP Finance insight: As specialists in healthcare finance, we know what lenders are looking for and can streamline the approval process, increasing your chances of securing fast, competitive funding tailored to your practice goals.

5. Maintaining Working Capital for Day-to-Day Operations

A common oversight among first-time buyers is underestimating the cash required for day-to-day operations during the first few months post-purchase. From payroll and utility bills to clinical supplies and insurance, it's vital to have access to working capital to keep the business running smoothly, especially as you navigate patient transitions, staffing adjustments, or system changes. Establishing a working capital buffer will help avoid disruptions and provide financial breathing room as the practice adjusts under new ownership.

EP Finance insight: We offer access to working capital loans, cash flow finance, and merchant cash advances designed to give you the financial flexibility to manage operating costs and maintain a high standard of care, right from day one.

6. Understanding Tax and Legal Considerations

A dental practice acquisition involves numerous legal and tax-related steps. From negotiating the sale agreement and transferring NHS contracts to ensuring regulatory compliance and managing any TUPE (Transfer of Undertakings) obligations for staff, legal clarity is essential. Tax considerations such as Stamp Duty Land Tax (SDLT), capital gains tax (for the seller), VAT implications, and allowable expenses for loan repayments should all be carefully evaluated with the support of a solicitor and accountant familiar with dental practice acquisitions.

EP Finance insight: We collaborate with trusted legal and tax advisors who can help you manage the due diligence process and structure your finance arrangements to be as tax-efficient as possible. Where applicable, we also provide access to VAT & tax funding to help manage larger one-off liabilities.

7. Post-Acquisition Investment and Growth

Once you’ve successfully taken over the practice, you may want to invest in strategic upgrades to increase revenue and enhance patient experience. This could involve recruiting new associates, expanding treatment offerings (such as cosmetic dentistry or orthodontics), adopting digital dentistry tools, or enhancing marketing efforts. These improvements often require additional funding, but if implemented wisely, they can significantly boost the long-term value of your business.

EP Finance insight: Whether you're investing in new services, expanding into a second location, or upgrading systems to increase operational efficiency, EP Finance offers a range of growth funding options to help you scale with confidence.

Why Choose EP Finance for Your Dental Practice Acquisition?

At EP Finance, we specialise in helping healthcare professionals - especially those in dentistry, access bespoke financial solutions designed for long-term success. We understand the nuances of buying a dental practice and offer a full-service approach that supports you before, during, and after your acquisition.

When you partner with us, you benefit from:

• Access to a wide panel of specialist healthcare lenders

• Tailored advice based on your goals and practice profile

• Flexible finance terms with fast approvals and competitive rates

• Support throughout the acquisition process, from planning to post-purchase

Whether you’re buying your first practice or expanding your existing operation, we’re here to help you make confident, informed financial decisions.

Take the Next Step with EP Finance

Buying a dental practice is one of the most important financial decisions you’ll make as a dental professional. With the right advice and financial support, it can also be one of the most rewarding. Let EP Finance be your trusted partner in this journey. Contact us today for a free, no-obligation consultation, and discover how we can help you secure the right funding to turn your vision into a thriving dental business.