For many dentists, owning a practice is a significant career milestone. Whether you’re purchasing your first practice or expanding an existing portfolio, the opportunity can be exciting, but it also comes with important financial considerations.

One of the biggest surprises for many buyers isn’t finding the right practice. It’s understanding how the purchase will actually be funded.

Planning ahead and understanding how dental practice acquisitions are typically structured can help make the process far smoother and reduce unnecessary delays when the right opportunity comes along.

Funding a Dental Practice Purchase

Most dental practice acquisitions are funded through a combination of secured lending and additional finance.

In many cases, a bank or specialist lender may provide around 70% of the purchase price, leaving the buyer responsible for funding the remaining 20–30% deposit. Depending on the value of the practice, this could represent anywhere from £150,000 to £350,000 or more.

While some buyers have sufficient capital available, many prefer to preserve their cash reserves for working capital, refurbishment, new equipment or future growth rather than committing everything to the initial purchase.

Understanding how this funding gap can be addressed before making an offer can help avoid delays later in the acquisition process.

What Do Lenders Look For?

A strong application isn’t based on one factor alone. Lenders typically assess the overall strength of both the buyer and the practice being acquired.

Areas commonly considered include:

• Previous experience, whether you’re a first-time owner or expanding an existing group.
• The financial performance and profitability of the target practice.
• Existing liabilities and how the acquisition is being structured.
• Complete and accurate documentation to support the application.

Having this information prepared in advance can often make the funding process more straightforward and help avoid unnecessary hold-ups.

Not Every Dental Practice Is the Same

Funding requirements can also vary depending on the type of practice being purchased.

Whether a practice operates predominantly under NHS contracts, is fully private, or has a mixed income model, lenders will consider how the practice generates revenue when assessing an application. Specialist funding solutions are often structured around these different income streams rather than taking a one-size-fits-all approach.

For buyers, understanding these differences early can help set realistic expectations before entering negotiations.

Preparation Can Make the Difference

Purchasing a dental practice is rarely a quick process. Alongside legal work, valuations and lender requirements, buyers are often coordinating multiple parties before a transaction can complete.

Preparing key financial information, understanding the likely funding structure and speaking to specialists before making an offer can help keep the process moving when the right opportunity becomes available.

A well-prepared application not only gives lenders greater confidence but can also help buyers progress with greater certainty throughout the acquisition.

Thinking About Buying a Dental Practice?

If you’re exploring the purchase of your first practice or planning your next acquisition, understanding your finance options early can help you approach the process with greater confidence.

Our Dental Practice Finance service is designed to help dentists explore their funding options, understand how much they may be able to borrow and find a finance solution suited to their circumstances.

Take a look at our Dental Practice Finance page to find out more about your options.

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