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Buying a dental practice: Checklist for taking over the practice (2025)

The dream of having your own dental practice is within reach — but taking over a practice is a complex process with many pitfalls. From location analysis to financing planning to legal aspects: Thorough preparation is the key to success. In this checklist, you will find out what you need to pay particular attention to in 2025 in order to smoothly take over and successfully manage a dental practice.

10.4.2025
Robert Adam
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output:  Moderner Krankenhausflur mit Empfang und Pflanzen.

Common questions

How do you calculate the value of a practice?

The value of a dental practice is determined based on various factors:

  • Income value method: The basis is the annual profit before tax multiplied by a factor (usually 3 - 6).
  • Substance-value method: Calculation based on inventory, equipment and material values.
  • market analysis: Comparison with similar practices in the region.

example: A practice with €200,000 in annual profit and a multiplier of 4 would be worth around €800,000.

Note: Income value is often used as a decisive factor as it reflects the future profitability of a practice. The net asset value usually plays a minor role, except for very high-quality equipment.

How much does it cost to set up a dental practice?

Setting up a new dental practice can vary significantly depending on location and equipment. The average costs are:

  • Premises & renovation: 100,000 - 300,000€
  • Medical equipment & technology: €150,000 - €400,000
  • Practice equipment & IT: 30,000 - 100,000€
  • Operating costs for the first few months: 50,000 - 150,000€

Total costs: 300,000 - 1,000,000+ € depending on scope and location.

How do you take over a dental practice?

The takeover of a dental practice takes place in several steps:

  1. Find a practice: Search for offers on practice exchanges, chambers or networks.
  2. Analysis & evaluation: Check sales figures, number of patients and contracts.
  3. Clarify financing: use bank loans, subsidies, or leasing options.
  4. Conclude a sales contract: Notarial contract and adoption of practice structure.
  5. Plan a transition period: Patient communication, employee involvement and, if necessary, modernizations.

Does an employment contract as an employed dentist remain in force after taking over the practice?

Yes, in accordance with Section 613a BGB, existing employment contracts are automatically taken over by employed dentists. That means:

  • All rights & obligations remain in place, including salary and vacation entitlement.
  • Changes are only possible with mutually agreed adjustment.
  • Operational termination is only permitted under certain conditions.
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Challenge

In this article, you'll read:

Taking over the practice as a dentist: The better alternative to setting up a new business?

Before you decide to take the step into self-employment, you should consider the advantages and disadvantages of taking over a practice compared to new foundation weigh carefully.

Benefits of taking over practice:

  • Existing patient base ensures immediate income
  • Established team reduces training costs
  • Well-established processes make it easier to get started
  • Often lower marketing and set-up costs

Practice adoption challenges:

  • Less design freedom in location, equipment and practice structure
  • Any hidden costs due to restructuring or Modernization needs
  • Possible legacy issues (e.g. current contracts, patient clientele)

Our recommendation:

In most cases, buying an existing dental practice is the smarter choice. You save time, minimize financial risk and benefit from structures that are already functioning. Although a start-up can offer individual freedom, it is associated with a high level of planning effort, longer start-up times and uncertain income. So if you want to get started quickly, taking over the practice is usually better off.

Find offers: Where can I buy a dental practice?

The search for the right dental practice is the first decisive step towards a successful takeover. There are various ways to find suitable offers:

1. Specialized practice exchanges

Online practice exchanges are often one of the best places to find available dental practices. Here you can filter by location, practice size and turnover in order to identify specifically suitable offers. The most well-known platforms include:

2. Professional associations & chambers

Dental associations and professional associations often run their own practice exchanges or can establish contacts with donating colleagues. A conversation with the chamber in your region can provide valuable information.

3. Networks & personal contacts

Many practice takeovers take place without public tenders, but through personal recommendations. Talk to colleagues, dental depots and tax advisors — exclusive offers are often available this way.

4. Brokers & consultants for practice takeovers

There are specialized intermediaries who sell dental practices professionally. They can help you with your search, evaluation and negotiation, but charge a commission (often between 3 - 5%).

Dental practice transfer costs: These expenses await you

In addition to the purchase price, there are numerous other costs that you should take into account. Careful financial planning helps to avoid unexpected expenses. Let's look at all factors:

1. Purchase price of the practice

The biggest cost factor is the value of the practice, which is made up of various factors:

  • Turnover & income: Higher income usually means a higher purchase price.
  • location: A centrally located practice in a big city costs more than one in a rural area.
  • Equipment & technology: Modern, well-equipped practices have a higher value.
  • patient base: A stable patient base increases attractiveness and price.

Average prices:

  • Small rural practices: €100,000 - €250,000
  • Medium-sized city practices: 250,000 - 500,000€
  • Highly frequented metropolitan practices: 500,000 - 1,000,000+ €

2. Renovation & Modernization

Depending on the state of practice, you must also invest in modifications, new devices or digitization. This may include:

  • Renewal of treatment units: 30,000 - 100,000€
  • Digitalization (e.g. Practice software, X-ray equipment): 10,000 - 50,000€
  • Furnishing & renovation: 5,000 - 50,000€

3. Additional costs of purchase

In addition to the actual purchase price, there are various additional costs:

  • Notary fees & contract fees: 1 - 2% of the purchase price
  • Consulting fees (tax advisor, lawyer, appraiser): 5,000 - 20,000€
  • Broker's commission (if an agent is involved): 3 - 5% of the purchase price

4. Current costs after takeover

After the purchase, you must also expect regular operating costs:

  • Practice rent: 1,500 - 10,000€ per month, depending on location
  • Staff costs: 30 - 50% of turnover
  • Insurance & contributions: 1,000 - 3,000€ per month
  • Material & laboratory costs: 10 - 20% of turnover

5. Summary of costs

The key cost points are summarized here:

  1. Purchase price of the practice: 100,000 - 1,000,000+ €, depending on location and size
  2. Modernization & equipment: 5,000 - 100,000€, depending on the state of the practice
  3. Additional costs (notary, advice, broker): 5,000 - 20,000€ + 3—5% brokerage commission
  4. Ongoing operating costs:
  • Rent: 1.500 - 10.000 €/month
  • Staff costs: 30 - 50% of turnover
  • Material & laboratory costs: 10 - 20% of turnover
  • Insurance & contributions: 1,000 - 3,000 €/month

Tip: In addition to the purchase price, you should plan additional reserves for unforeseen costs. Detailed financial planning helps to avoid liquidity bottlenecks and to make the takeover economically successful.

Contracts for the takeover of a dental practice (staff, rent, etc.)

When you buy a dental practice, you not only take over the patient base and equipment, but often also existing contracts. These should be carefully reviewed to avoid financial or legal risks.

1. Rental agreement: Will the practice remain at the same location?

In most cases, the buyer takes over the existing rental agreement - but the conditions are not always optimal. Pay attention to the following points:

  • Rental period & notice period: Is the contract secured in the long term? Are there any hidden rent adjustment clauses?
  • Rent increase clauses: Are regular increases planned? How high is the indexing?
  • Modifications & investments: Who bears the costs of renovations or modernizations?
  • Right of transfer: Can the rental agreement be easily transferred in the event of a subsequent sale?

Tip: Have a lawyer review the rental agreement to avoid long-term disadvantages.

2. Employment contracts: What happens to existing personnel?

As a rule, all employees have inventory protection in accordance with Section 613a BGB, i.e. they are taken over with their previous contracts. However, the following points should be considered:

  • Salary structure & benefits: Are salaries, vacation entitlements, and bonuses in line with your budget?
  • Cancellation periods & length of service: Are there long-term employees with long notice periods or severance payment claims?
  • Responsibilities & qualifications: Are all employees suitably qualified for your planned practice concept?
  • New employment contracts: If changes are necessary (e.g. new allocation of tasks), these must be agreed by mutual agreement.

Tip: A personal conversation with every employee helps to build trust and clarify uncertainties at an early stage.

3. Supply & service contracts: What obligations exist?

Dental practices have numerous ongoing contracts, which often Continue automatically. In particular, check:

  • Supply contracts for materials & medicines: Are prices and terms in line with the market?
  • Equipment maintenance contracts: Are there expensive service contracts with long terms?
  • Software & IT services: Which licenses and maintenance contracts are necessary?
  • Marketing & advertising: Are there ongoing obligations for external services?

Tip: Not all contracts make sense or are necessary. Check whether existing agreements can be terminated or renegotiated.

Summary:

  1. Check rental agreement: Clarify duration, costs and takeover conditions
  2. Involve personnel: Review contracts and communicate at an early stage
  3. Analyze service & supply contracts: Avoid unnecessary obligations

Practical checklist for taking over a dentist's practice

This checklist helps you to consider all important steps and ensure that no key aspects are overlooked.

1. Market research & practice selection

  • Search practice exchanges, chambers & networks for suitable offers
  • Analyze location & competition situation
  • Review patient structure and economic indicators

2. Financial planning & purchase price evaluation

  • Determine practice value (income value, net asset value)
  • Check financing options (bank loans, subsidies)
  • Plan reserves for modernization & start-up costs
  • Check practice debts: Are there any outstanding loans or leasing contracts?
  • Patient rights & data protection: How are patient records adopted in a legally secure manner?

3. Contracts & legal review

  • Check the rental agreement: duration, rent adjustment, conversions
  • Take over or renegotiate employment contracts
  • Check delivery & service contracts for notice periods
  • Strengthen employee loyalty: Conduct discussions at an early stage and involve the team.
  • Optimize digital processes: Introduce cloud-based billing systems & modern patient management — with Nelly It's very easy.

4. Prepare takeover & practice operation

  • Coordinate the transition period with the previous owner
  • Ensuring communication with patients & team
  • Adapt or renew IT & billing systems

5. Official start & long-term optimization

Tip: Use experts such as tax advisors, lawyers or practice advisors to minimize risks and make the takeover smooth.

How much revenue does a dental practice make per month?

The monthly turnover of a dental practice varies greatly and depends on several factors: Location, specialization, patient structure and company size. However, a general assessment can help to get an overview.

Estimated values for monthly turnover:

  • Individual practice turnover: 30,000 - 150,000€ per month
  • Large or specialized practice: 150,000 - 300,000+ € per month
  • Profit margin: 30 - 50% of turnover, depending on fixed costs and service structure

Let's take a quick look at how these figures come about:

1. Average monthly turnover of a dental practice

Estimated guidelines for monthly turnover in various types of practice:

  • Individual practice in the countryside: 30,000 - 70,000€
  • Average urban practice: 70,000 - 150,000€
  • Metropolitan practice with specialization (e.g. implantology): 150,000 - 300,000+ €

2. Factors influencing sales

These factors determine how much a dental practice can generate per month:

  • Number of patients & frequency: More patients mean higher income — particularly in big cities.
  • treatment offer: High-priced services (e.g. implants, aesthetic dentistry) significantly increase sales.
  • Private vs. health insurance patients: Private services are usually more lucrative than purely statutory health insurance treatments.
  • People & efficiency: A well-organized practice with several practitioners can achieve higher sales.

3. Profit after deduction of costs

High sales do not automatically mean high profits — because a dental practice also has considerable fixed costs:

Typical costs of a practice (monthly):

  • Rent & additional costs: 1,500 - 10,000€
  • personnel costs: 30 - 50% of turnover
  • Material & laboratory costs: 10 - 20% of turnover
  • Insurance, Software & Administration: 1,000 - 5,000€

4. Average net profit for practice owners:

After deducting all costs, there is usually a Profit percentage of 30 - 50% of turnover, depending on practice size and efficiency.

Digital & optimized practice takeover: How to make your dental practice fit for the future

Buying a dental practice is a big step — but in our experience, digital optimization is essential in order to be successful in the long term. Modern technologies not only make everyday practice easier, but also increase efficiency and patient satisfaction.

Digitalize your practice processes with Nelly:

Your benefits at a glance:

  • Less administrative work through digital document management, billing and patient communication.
  • Optimized patient retention through automated assessments and follow-ups that boost your online reputation.
  • Better liquidity thanks to rapid payment processing and factoring, which reduces financial risks.

More about digitizing your dental practice can be found here.

Robert Adam

Author

Robert Adam runs SEO & blog marketing for tech startups and SMEs with his agency ClickFound. He is an expert in HealthTech and FinTech.

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