Dental practice finance, from the chair to the closing table
Practice acquisitions are among the most common SBA 7(a) deals. Whether you're buying, lending on, or running a practice, the numbers that matter are specific to dentistry.
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What we test in a dental practice QoE
- Collections tied to bank deposits, not just production reports
- Production vs. collections and PPO write-off trends
- Insurance and patient receivables aging, and collectability
- Owner-dentist compensation normalized to market for the work performed
- Associate and hygiene compensation structures
- Lab and supply costs as a share of collections
- Active patients, new-patient flow, and payer mix
- Equipment age and deferred technology spend
Finance leadership for dental practices
- Dental-specific chart of accounts and monthly close
- Practice KPI dashboard: collections per visit, hygiene production, case acceptance
- Insurance AR management and fee-schedule analysis
- Cash forecasting for expansions, new operatories, and second locations
- Practice valuation readiness and transition planning
Questions buyers and lenders ask
Does a dental practice acquisition need a QoE under the new SBA rule?
Only when the loan is a 7(a) Initial Acquisition or Business Expansion and the business purchase price is $3 million or more. Many single-location practices fall below that, so the SOP doesn't require a QoE, but lenders often still want earnings tested. Our Buyer QoE Lite ($6,500) and lender-requested QoE ($11,500) are built for that range.
What do lenders focus on in a dental QoE?
Collections tied to bank deposits, owner-dentist compensation normalized to what a replacement dentist would cost, payer mix and PPO write-offs, hygiene production, and whether insurance and patient receivables are collectible.
Can the selling dentist's compensation be added back?
Only the excess over the market cost of the clinical work. If the owner produces dentistry, someone has to be paid to keep producing it after the sale, so that cost stays in the earnings a lender underwrites.
Two ways to start
Buying or financing a deal? Start with a QoE conversation. Running the business? Start with a CFO conversation.