
Acquisition vs Startup: Which Dental Practice Path is Right for You?
Hi Doctors!
Whether you’re dreaming of ownership, thinking about expanding, or planning your exit, one big question always pops up: Should I buy an existing practice—or start one from scratch?
Let’s break it down so you can make the best move for your future.
The Startup Dream: Build It Your Way
Starting a practice from scratch can feel like freedom. You choose:
- The location 🏙️
- The layout 🛠️
- The brand and vibe 😎
Pros:
✅ Full creative control
✅ Modern equipment & design
✅ Opportunity to grow exactly how you want
✅ YOU control the timeline—no waiting on inventory or seller decisions
But… Startups take time and capital to ramp up. You’ll need to:
- Attract patients from zero
- Market like crazy
- Manage loan payments before the revenue starts flowing
Average time to break even? Often 18–36 months, depending on your area and marketing game.
The Acquisition Advantage: Buy What’s Already Working
Buying a practice means stepping into a business that’s already running—patients, team, cash flow, and all.
Pros:
✅ Immediate revenue
✅ Loyal patient base
✅ Trained staff already in place
✅ Easier lending (banks love existing cash flow)
BUT—there are cons…
– You don’t control the timeline. There’s a limited inventory of great practices, and sometimes the perfect opportunity just isn’t on the market when you’re ready. You may find yourself waiting months (or more) for the right fit.
– Outdated Equipment or Facilities – The practice may require upgrades or renovations to meet modern standards.
– Patient Transition Challenges – Patients may be loyal to the previous owner, and retention efforts are necessary.
–Hidden Liabilities – Existing contracts, leases, or financial obligations must be carefully reviewed. Even once you find one, seller readiness, lease negotiations, and lender delays can create unexpected detours.
🔍 Which Path Fits You Best?
Goal |
Best Fit |
Want full control and custom everything? |
Startup |
Want cash flow from Day 1? |
Acquisition |
Want to move fast on your timeline? |
Startup |
Willing to wait for the right deal? |
Acquisition |
💡 Real Talk from the Field
Most lenders and advisors will tell you this:
Acquisition is usually less risky and more profitable in the first 5 years.
But if you’ve got a great location, strong vision, and solid business support, a startup can absolutely thrive—and you’re in the driver’s seat from Day 1.
👥 What Career Stage Are You In?
🔸 Aspiring Owners (Associates): Acquisition can give you the confidence of built-in income while you sharpen your leadership skills—but don’t underestimate the power of a well-executed startup.
🔸 Existing Owners: Looking to expand? Consider a second location via acquisition—but be prepared for a flexible timeline.
🔸 Near-Retirement Dentists: Thinking of selling? You’re the other side of this equation! A strong existing practice is exactly what buyers are waiting for—and timing matters.
JRA’s Take
There’s no one-size-fits-all. But there is a smart strategy for your situation.
We’ll help you evaluate options based on your goals, market timing, and timeline flexibility.
👉 Want help finding the right opportunity (or buyer)? That’s our specialty.
💬 Let’s Chat
Ready to talk real numbers and real timelines?
Contact JRA—your go-to guide for dental transitions.