The bank said it would be OK: Evaluating your readiness to purchase a dental practice

Over the years of providing brokerage services to many clients, I have heard this statement many, many times: “The bank said it would be OK.” Every time I hear it, it takes me back to a moment in my own career. I once had a bank approve me for a million--dollar loan in less than 24 hours. I was a successful dentist with two offices and was looking to acquire my third, with an opportunity to combine two of the locations. The bank was more than willing to lend me the money.

It shocked me. It gave me doubts. It made me second--guess everything. How in the world did the bank know it was fine with such a quick review of my financials? But I told myself what many dentists tell themselves: “If the bank is on board, it must be OK.”

So, I took the plunge. I signed the documents and jumped into ownership of my third office. For the next three months, I worked 80--hour weeks—moving equipment, managing patients, handling staff issues, and solving problems that seemed to multiply daily. I was trying to merge systems and cultures that did not want to merge. It was only while going through that process that I realized something important. The bank was not looking out for me. They were looking out for repayment.

I eventually ended up selling all my offices due to a disability, which I believe was complicated by the stress and long hours demanded during that season of my career. At the time, I thought what happened to me was unique. I assumed I had simply made bad choices and created my own mess. I was disappointed in how that chapter of my career ended.

A couple of years later, I began working with a company helping dentists sell their practices. I thought I would mostly see retirement transitions. But I was wrong. Probably half of the dentists I helped were not retiring. They were burned out. They were overwhelmed. They were financially stuck. They were unhappy.

I helped dentists sell and go to work for DSOs. I helped dentists retire earlier than they wanted to. I helped dentists relocate just to get out from under the pressure of an office that had become too heavy a burden to carry. That is when I started to see a pattern.

These dentists were not bad clinicians. They were not lazy. They were not incapable. They had simply bought offices without doing full due diligence. They had not looked at the whole picture, and somewhere along the way they reassured themselves: “The bank approved it, so it must be OK.”

Now, I am not trying to make banks the bad guys. They are essential. In today’s market, acquisitions of dental practices are nearly impossible without financing. We should be grateful for lenders willing to support our profession. But gratitude should not replace discernment. Banks are evaluating repayment probability. They are not evaluating your leadership readiness, your emotional bandwidth, or whether your marriage can withstand 80--hour weeks. That part is your responsibility.

Before you buy a practice: 3 pillars of readiness

Over time, I developed what I call three pillars of readiness that every dentist should consider before purchasing a practice: personal, financial, and life.

Pillar no. 1: Personal readiness

The first pillar is personal readiness. Where are you as a leader? Are you willing to have hard conversations? Do you have standards for how you want a practice run? Are you able to make decisions without having all the data in front of you and live with the consequences?

Ownership demands leadership. It demands decisiveness and emotional resilience. If you know you avoid conflict and never want uncomfortable conversations, maybe ownership is not for you right now. That is not a criticism; it’s an invitation to pause and grow before stepping into something that will magnify your weaknesses.

Pillar no. 2: Financial readiness

The second pillar is financial readiness. This is where the bank can help. They will provide the funds, structure the loan, and show you that the numbers “work.” But that’s not enough. You need a clear picture of what you will actually take home after debt service—not what the previous owner made and not what a pro forma suggests.

You need to understand your own burn rate. Mortgage, car payments, day care, insurance, student loans—every recurring family expense matters. I like to see dentists know their monthly personal expenses within $500. That level of clarity changes decisions. Then run a simple scenario: what happens if revenue drops 15% for the first six months? If you cannot survive that dip, it may be time to delay the purchase, reduce expenses, or build more margin. Bank approval does not equal safety.

Pillar no. 3: Life circumstances

The third pillar is life. This is the one most often ignored. Your life circumstances matter. Are you single? Married? A family of five? Have you had a real conversation with your spouse about worst--case scenarios? I have seen more than one practice sold within a few years because that conversation never happened.

You also need emotional bandwidth. Maybe you have a special--needs child who requires additional appointments and advocacy. Maybe there are family obligations that will compete for your time and energy. These realities do not disappear when you sign loan documents.

Geography also plays a role. I cannot count how many times I have heard a dentist say, “I would live there if my wife wanted to.” That is not a small detail. Sometimes it is far more profitable and healthier to live in a rural community with less competition. But if that vision has never been communicated and agreed upon, resentment builds. Too many dentists stay in saturated markets, work harder than they expected, and never see the returns they imagined. Burnout follows quietly a few years later.

I do not share any of this to cast a shadow over private practice. Private practice is powerful. It offers autonomy, long--term wealth building, and the ability to shape culture and care. But you must choose the right practice. You must do due diligence on yourself, your finances, the practice’s financial engine, and the life surrounding you before jumping into something that may take five to 10 years to unwind.

I have genuinely enjoyed helping buyers purchase dental offices the right way. I have remained friends with many of them for years. Watching them build stable, healthy practices is one of the most rewarding parts of my career.

The bank saying yes is not the finish line. It is the beginning of deeper questions. And those questions are yours to answer. 

Additional reading: Private practice purchase guidelines for today's new dentists

Editor's note: This article appeared in the May 2026 print edition of Dental Economics magazine. Dentists in North America are eligible for a complimentary print subscription. Sign up here.