If you’re thinking about buying a dental practice this year, it might feel like the odds are stacked against you. The current economic and market conditions aren’t exactly making it easy.
For starters, the cost of goods and services keeps climbing, which means the day-to-day expenses of running a practice are higher than ever. On top of that, sky-high interest rates are making loans more expensive, so financing your purchase isn’t as affordable as it used to be.
To make matters worse, the number of high-quality dental practices for sale is shrinking. What’s left are often fixer-uppers requiring significant investments to stay competitive.
And even if you do land a practice, you’ll still have to deal with stiff competition. Larger, well-established practices with bigger budgets can easily overshadow smaller setups, cutting into your revenue and customer base.
So, what does all of this mean for you? Let’s dive into the specific challenges you’ll face if you’re planning to buy a dental practice in 2025.
Price of Goods and Services
When you’re eyeing a dental practice to buy, you can’t just focus on the purchase price—you also need to think about the costs of running it. Supplies and high-tech equipment aren’t getting any cheaper, and if you want to specialize in a specific area, you’ll need even more specialized (and often expensive) tools.
These rising expenses mean that the day-to-day cost of running a dental practice is climbing, and that can make the purchase price feel like the easy part. Higher costs for goods and services lead to higher overhead, which can quickly eat into your profits.
You might find yourself needing to raise prices for patients just to break even. That’s a tough spot to be in because, while necessary, it could mean losing some customers who can’t keep up with the higher fees.
In short, buying a practice is just step one. The real challenge lies in managing the ongoing costs that come after.
High Interest Rates
Rising interest rates are another hurdle for anyone trying to buy a dental practice this year. Most buyers use a mix of cash and loans to make their purchase, with loans covering a big chunk of the cost.
But with interest rates climbing, loans are no longer the great deal they used to be. Higher rates mean larger monthly payments and more interest piling up over time, which can drain your cash flow and limit your financial flexibility.
For some buyers, this could mean having to settle for a less-than-ideal practice or taking a bigger risk in the hopes it will pay off. It’s a gamble, and while the rewards can be high if you succeed, the risks are just as real.
Fewer Topnotch Dental Practices for Sale
Finding a great dental practice to buy is getting harder. With younger dentists more likely to stay associates rather than buying practices, fewer practices are coming on the market.
What’s left are often fixer-uppers—practices that need major investments to modernize equipment, clean up their reputation, or improve services to compete in today’s market.
To make matters worse, private equity firms are snapping up the best practices, leaving individual buyers with limited options. While a lower purchase price for a fixer-upper might seem like a deal, it often comes with hidden costs and challenges. You’ll likely need to spend more money and time just to bring the practice up to speed and make it viable again.
Competitor Landscape
The dental industry is more competitive than ever. Larger, established practices have the resources to offer more services at lower prices, making it hard for smaller practices to compete.
For a smaller or newly acquired practice, it’s also tough to hire and retain skilled specialists since bigger players can afford to offer higher salaries and better perks. And if you’re looking to expand your own skills to meet demand, further education and certifications come with their own hefty price tags—and it can take time to see the return on that investment.
This all adds up to a tough competitive landscape, where standing out requires not just money but also creativity and a solid plan for growth.
Here’s the Good News
While the challenges are real, buying a dental practice in 2025 isn’t impossible. It just takes more planning, preparation, and the right guidance.
At Virjee Consulting, we specialize in helping dental professionals navigate these kinds of challenges. From analyzing the financial health of a practice to finding smart ways to save on taxes and reduce costs, we’re here to make the process as smooth as possible.
Even if it feels overwhelming, with the right team in your corner, you can make smart and informed decisions that set you up for long-term success.
Ready to get started?
Head over to our Contact Page to get started, and let’s talk about how we can help you achieve your goals.
Until next time.
