Buying a Dental Practice: A Finance Guide for Buyers

How do you buy a dental practice in the UK?

To buy a dental practice in the UK, you find a practice, line up finance before you offer, agree heads of terms, run due diligence with a dental solicitor and accountant, apply for CQC registration alongside the seller, settle how any NHS contract will be handled and then complete. Professional Practice Loans, a specialist whole-of-market broker for professional practices, arranges the purchase finance with lenders who understand dentistry.

1. Be clear on what you want. NHS, private or mixed; the number of surgeries; the area; and whether a full purchase or a buy-in to the practice where you are an associate suits you better.
2. Find the practice. Register with specialist dental sales agents, watch the dental press and tell your dental accountant and solicitor what you are looking for. See dental practices for sale and how to judge a listing.
3. Get an early view on finance. Know what lenders are likely to support before you commit to professional fees. Instant Quotes shows indicative options without a credit search.
4. Agree heads of terms. Price, what is included, asset or share purchase, any deferred consideration and the handover period.
5. Run due diligence. Accounts split between NHS, private and plan income, the NHS contract and delivery against it, associates and staff, the latest CQC report, equipment and the lease.
6. Start the regulatory applications. The CQC says the buyer must be registered before providing regulated activities, and its guidance on buying, selling or transferring a registered business explains how the buyer’s and seller’s applications are assessed together. Your solicitor leads on the NHS contract, which does not simply pass with the sale.
7. Apply for finance. Submit the valuation, forecasts, your CV and a personal financial statement, then agree the conditions that must be met before drawdown.
8. Complete. Staff usually transfer under TUPE, and funds are released once the legal, regulatory and finance conditions are all in place.

It suits associates becoming owners, owners adding a second site and groups buying an established list. What to watch: income that depends on the seller personally, contracted NHS activity that is not being delivered, a short lease, ageing chairs and imaging, and too little working capital for the first months after completion.

A dental purchase is usually funded with a term loan for the goodwill, with equipment finance, premises finance and working capital alongside. For the rates professions lenders on our panel publish, see practice purchase finance costs, and for everything we arrange for dentists see dental practice loans.

Why dental practice purchases are structured differently

Buying a dental practice is one of the most common professional acquisitions in the UK, and lenders are familiar with it. Specialist professions lenders, high-street banks and challenger banks all have established approaches to dental practice loans. That familiarity helps, but it also means lenders have clear views on what makes a good or a weak purchase, and they will apply them.

The key feature of a dental acquisition is that most of the price is usually paid for goodwill: the value of the patient list, the income it generates and the reputation of the practice. There is also equipment, which may need replacing, and the premises, which may be bought or leased. Each element is assessed differently. A well-structured funding package matches each cost to the most suitable form of finance rather than putting everything into one loan.

This guide focuses on the finance. You will also need a specialist dental solicitor and an accountant with dental experience, and your funding timeline should run alongside theirs.

Dental practices for sale: where to find them and how to judge a listing

If you are looking at dental practices for sale, it helps to know that not every practice is advertised widely. Some are offered only to buyers registered with an agent, and some change hands privately, often to an associate already working there. Buyers in the UK usually find a dental practice, dental surgery or dental clinic for sale through a mix of channels:

• Specialist dental practice sales agents: firms that market practices for sellers and keep registers of buyers. Registering with more than one gives a wider view of the market, and you will usually be asked to sign a confidentiality agreement before you see the practice name or its figures.
• Specialist dental valuers and accountants: many sales start with a valuation, and accountants with dental clients often hear early when a principal is planning to sell or retire.
• The dental press: dental trade publications and their websites carry practice for sale and practice wanted classified adverts.
• Word of mouth and associates: let your network, your dental accountant and your solicitor know what you are looking for. If you are an associate, the practice you work in may be the best opportunity, either as a full purchase or a buy-in.

For an NHS or mixed practice, remember that the NHS contract does not simply pass with the sale. In England, the NHS England policy book for primary dental services explains that a change to the contracting party, such as a partnership change or a move to or from a company, is handled as a contract variation or a novation that the commissioner must agree. Ask early how the contract will be dealt with for the practice you are looking at, because lenders will want to know too. If you are looking at dental practices for sale in Scotland, Wales or Northern Ireland, the NHS and registration arrangements differ: private clinics in Scotland must be registered with Healthcare Improvement Scotland, private dental practices in Wales register with Healthcare Inspectorate Wales, and in Northern Ireland the RQIA dental registration guidance says a new owner must re-register the practice in their own name.

When you judge a listing, look past the headline price and ask for the information a lender will also want:

• The income split: accounts that separate NHS, private and plan income, and how each has moved over recent years.
• Who does the dentistry: how much of the income comes from the seller personally, how much from associates, and whether the seller will stay on for a handover.
• The NHS contract: contracted activity and recent delivery against it, and the route for the contract on a change of owner.
• The surgeries: the number of surgeries, the age of the chairs and imaging, room to expand and the practice’s latest CQC inspection report.
• The premises: freehold or lease, the remaining term, the rent and whether the landlord’s consent is needed.
• The basis of the price: how the asking price was arrived at, whether it is an asset or a share sale, and whether any of the price is deferred.

Line up the finance before you make an offer. A seller choosing between buyers is likely to look at how certain each one is to complete, not just the price. Talk to us before you offer and we will search the market for lenders that fund dental acquisitions, so you know what is likely to be supported for that practice given your experience, your own contribution and the practice’s figures. Have your CV, a personal financial statement and evidence of where your contribution comes from ready. An early indication is not a formal offer of finance, which follows a full application and the lender’s own assessment. See practice acquisition finance or get instant quotes for a purchase. If you are on the other side of the deal, read our guide to selling a dental practice.

NHS, private and mixed practices: why the income mix matters

Dental practices in England broadly fall into three types: those with mainly NHS income, those that are fully private (often with a monthly plan scheme), and mixed practices with both. Lenders care about the mix because it determines where the income comes from and what could change it.

In England, NHS primary care dental services are commissioned by integrated care boards, and activity under the contract is measured in units of dental activity (UDAs). NHS England has introduced a series of quality and payment reforms to the dental contract, with changes taking effect during 2026. UDAs remain the main activity measure, but the reforms introduce new requirements, including for urgent care, which a buyer and their adviser will want to understand when assessing an NHS or mixed practice.

• NHS-heavy practices: income is contract-backed and predictable, which lenders like, but depends on the contract continuing, on meeting contracted activity, and on the commissioner’s approach to the change of ownership.
• Private practices: income depends on patients choosing to stay after the sale. Lenders look at patient numbers, plan membership, retention history and how much of the income is tied to the outgoing principal personally.
• Mixed practices: lenders assess each stream on its own terms and look at whether the mix is stable or shifting.

Wales, Scotland and Northern Ireland have their own NHS dental arrangements, so if the practice is outside England your solicitor and accountant will need to confirm the position that applies.

Regulatory approvals: CQC, GDC and the NHS contract

In England, a dental practice provides regulated activities and must be registered with the Care Quality Commission. The CQC’s guidance on buying, selling or transferring a registered business explains that regulated activities must continue during a sale, that the buyer needs to be registered before providing them, and that the outgoing and incoming providers should apply around the same time so the CQC can assess the applications together. The CQC can also issue a position statement during the process.

If you are buying through a company, the General Dental Council’s guidance on corporate dentistry and dental bodies corporate explains the requirements that apply under the Dentists Act, including those on the make-up of the board. The GDC is not a licensing body for practices, but its rules still affect how you structure the purchase, so take legal advice early.

Where the practice holds an NHS contract, the contract does not simply pass with the sale. How it is dealt with, and what the commissioner needs to see, is a legal question your solicitor will lead. From a finance point of view, lenders will usually want to see that the route for the contract is understood and progressing before they release funds for an NHS or mixed practice. See our guide to every cost in a professional practice purchase for approvals across other professions.

Goodwill, equipment and the condition of the surgeries

Goodwill is normally the largest single cost and is usually funded with a term loan, which is where the lender’s assessment is most detailed. Lenders will look at the valuation, how it was arrived at, and whether the income that supports it is likely to continue under new ownership. A valuation from a specialist dental valuer is often expected. Our page on goodwill finance covers how lenders approach it.

Equipment is a separate question. Dental chairs, imaging, decontamination equipment and practice software all have finite lives. If the surgeries need updating shortly after completion, that cost should be in the plan from the start. Equipment can often be funded through equipment finance, hire purchase or leasing, which keeps the acquisition loan focused on goodwill and spreads the cost of assets over their working life. Our guide to equipment finance, hire purchase and leasing explains the options.

A full surgery refit or an additional surgery is closer to a refurbishment project. Lenders are generally comfortable funding improvement work, but prefer to see it planned and costed rather than discovered after completion.

Premises: freehold or leasehold

If the practice owns its premises, you may be offered the freehold as part of the deal or separately. Buying the freehold usually involves commercial mortgage-style lending secured on the property, with its own valuation and legal work. Some buyers prefer to lease the premises from the seller initially and buy later. See practice premises finance for how that side works.

If the practice is leasehold, the lease becomes an important part of the lender’s security and of the value of the goodwill. Lenders will look at the remaining term, rent review and break provisions, any restrictions on use and assignment, and whether the landlord’s consent is needed. A short lease can undermine an otherwise strong acquisition because the goodwill depends on being able to trade from those premises.

Due diligence and the documents lenders expect

Lenders do not carry out your due diligence for you, but they rely on it. The better organised your information, the faster a credit decision tends to be. Expect to provide:

• Recent accounts and current management information for the practice, split between NHS, private and plan income where relevant.
• Details of the NHS contract, including contracted activity and recent performance against it, where applicable.
• Patient numbers and, for private practices, plan membership and retention.
• A list of staff and associates and their contracts.
• The goodwill valuation and, if applicable, the property valuation and lease.
• Recent CQC inspection outcomes and any compliance issues.
• Your own CV, personal financial statement and a business plan or cash flow forecast for the first years after purchase.

For a share purchase, where you buy the company that owns the practice rather than its assets, due diligence is wider: the company’s tax affairs, historic liabilities, employment claims and any existing borrowing all come with it. Lenders will adjust their approach accordingly, and may take security over the company as well as asking for personal guarantees.

Your accountant can help turn this into forecasts that reflect your plans rather than the seller’s history. Our guide to preparing a practice finance application sets out what makes a strong submission.

Associates, staff and patient retention

In many practices a significant share of the dentistry is carried out by associates rather than the principal. Lenders will want to know who the associates are, how long they have been there, what their agreements say about notice and restrictive covenants, and whether they are expected to stay. If the outgoing principal is a major producer, lenders will look for a handover plan, often with the seller staying on for a period.

Nurses, hygienists, therapists and the practice manager also transfer to the buyer in most asset purchases, under employment protection rules your solicitor will explain. A stable team supports patient retention and therefore the goodwill. Where recruitment is needed after completion, recruitment finance can help spread the cost.

What lenders assess and deposit expectations

Across all of the above, a lender is asking two questions: can the practice service the debt comfortably from its profits after you have paid yourself, and what happens if things do not go to plan. They will look at the income mix, the sustainability of the goodwill, your clinical and business experience, the premises position and the overall level of borrowing.

Most lenders expect a buyer to contribute some of their own money to a dental acquisition. The amount varies considerably between lenders and cases. Buyers with strong experience, a practice with a good trading record and a clear plan may find lenders willing to fund a higher proportion of the cost, while a first-time buyer taking on a practice with income concentrated in the seller may be asked for more. Equity from property, savings or family support can all form part of the contribution, and lenders will want to understand where it comes from.

Working capital after completion is often overlooked. NHS income arrives on a monthly cycle and private income can dip during a handover, so it is sensible to plan for a buffer. See practice working capital.

Sequencing the purchase

Dental purchases have several strands running at once: legal work, CQC registration, the NHS contract where there is one, finance and, sometimes, the property. The practical sequence usually looks like this:

1. Agree heads of terms with the seller, including price, what is included and any deferred elements.
2. Have an early conversation about finance, so you know what lenders are likely to support before committing to large professional fees.
3. Instruct a specialist solicitor and accountant, and start due diligence.
4. Submit the finance application with the valuation and forecasts, and start the CQC application alongside the seller’s.
5. Obtain a credit decision and offer, then agree the conditions that must be met before drawdown.
6. Complete once the legal, regulatory and finance conditions are all in place.

The timescale is driven by the slowest strand, which is often regulatory rather than the finance. Starting the finance early does not commit you, and it reduces the risk that a strong deal is delayed at the end.

Buying a dental practice checklist

Use this as a working list alongside your solicitor and accountant. Each point is something a lender is also likely to ask about.

• Income: several years of accounts and current figures, split between NHS, private and plan income.
• NHS contract: contracted activity, recent delivery against it and the route for the contract on a change of owner.
• Patients: active patient numbers, plan membership and how many patients the seller treats personally.
• People: associates, nurses, hygienists and the practice manager, their contracts and who is expected to stay.
• Surgeries and equipment: the age and condition of chairs, imaging and decontamination equipment, and any refit you will need.
• Premises: freehold or lease, the remaining term, rent reviews and whether the landlord’s consent is needed.
• Registration: CQC registration in England, or Healthcare Inspectorate Wales registration for private dentistry in Wales.
• Funding: your own contribution, the goodwill valuation, separate funding for equipment and premises, and working capital after completion.

What to look for when buying a dental practice

The things to consider when buying a dental practice come back to one question: will the income continue under your ownership? Look for a stable team, a patient base that is not concentrated in the seller, surgeries that will not need immediate replacement and a lease that comfortably outlasts your borrowing.

A few practical tips help in any location. Talk to a broker before heads of terms, so the price and the amount paid on completion are ones a lender is likely to support. Ask the seller to stay on for a handover where they treat many patients. Budget for equipment and refurbishment from the start rather than after completion. And run the regulatory steps in parallel with the finance so neither holds up the other.

Buying a dental practice in London, Manchester, Birmingham, Leeds or Wales

Lenders that fund dental purchases work across the UK, so the finance process is broadly the same whether the practice is in London, Manchester, Birmingham, Leeds or elsewhere in England. Local factors still matter to the case: the commissioning integrated care board for an NHS or mixed practice, local competition and recruitment, and premises costs.

In Wales the regulatory picture is different. Private dental practices must be registered with Healthcare Inspectorate Wales, and the Welsh Government has introduced new general dental services contract arrangements. If you are buying or selling a dental practice in Wales, ask your solicitor to confirm how the NHS contract and registration will be handled, and we will present the case to lenders on that basis.

Buying into a dental practice instead

Not every associate buys a whole practice. A dental practice buy-in, where you buy a share of the practice you work in, can be a lower-cost route to ownership. Lenders look at the practice’s accounts, your expected share of profits and how the buy-in price was calculated. See partner buy-in finance and our partner capital loans guide, or get instant quotes for a purchase or buy-in.

How we can help

We arrange finance for dental practice purchases across the whole of the market, including specialist professions lenders, high-street and challenger banks and asset finance houses. We structure the funding so goodwill, equipment, premises and working capital are each matched to suitable finance, present the case to lenders and manage the process through to completion. Finance is subject to status, lender criteria and approval.

Read about practice acquisition finance, see how it works, or visit our buying a practice hub.

Common questions

This guide is for general information only and should not be treated as legal, tax, accounting or financial advice. Funding availability and lender requirements depend on individual circumstances.