Is Buying a Dental Practice Still Worth It?

Beyond Bitewings

In this episode, Ash discusses the evolving landscape of dental practice ownership, particularly whether it’s still worth buying or starting a dental practice. Ash explains that the decision is much more nuanced than it was a decade ago. Factors such as market saturation, shrinking reimbursement rates, and increased competition from DSOs and PE-backed practices mean that buying or starting a practice requires extensive research and self-reflection. The conversation covers challenges unique to both startups and acquiring existing practices, including location selection, identifying business models, and coping with the demands of being both a clinician and a business owner.

He also addresses the realities of working with DSOs, selling a practice, and the trade-offs of joining larger organizations versus independent ownership. He also talks about why it's important to understand your career goals, personality fit, and risk tolerance amidst a shifting generational mindset and increasing concern about burnout.

Key Topics Discussed:

• The current viability of buying or starting a dental practice
• The impact of urban saturation and DSOs/PEs on dental ownership
• Key factors and research required for successful startups
• Startup vs. acquiring an existing practice: pros and cons
• Business acumen and the challenge for clinicians
• Effects of market demographics, location, and business models
• Lender requirements for practice acquisition
• The importance of team dynamics in transitions
• Differences between selling to DSOs vs. individual buyers
• Alternative equity opportunities for associates
• Generational differences in ownership goals
• Burnout and realistic career considerations
• Planning for exit strategies and financial obligations