Essential Steps to Take After Acquiring Your New Practice

You’ll want to ensure your transition is as seamless as possible.

Congratulations—you’ve just purchased your new dental practice for sale and are excited to begin working and generating income. However, before moving ahead, it’s crucial to carefully plan your transition and review your Dental Practice Appraisal to ensure everything runs smoothly.

With that in mind, here are several key steps to complete prior to closing:

Contract transfers:

Ensure that all essential contracts associated with the practice are transferred to you. Keep in mind that the seller should have disclosed all such agreements during the offer stage. Any contracts that were not disclosed or that you did not agree to assume should be excluded, with the seller responsible for cancelling them and covering any related costs.

Examples of these contracts include:

Practice software agreements
Telephone and internet services—this should also include phone numbers, websites, and email addresses
Security alarm systems
Hydro and gas providers
Cleaning services for the premises
Equipment maintenance agreements
Yellow Pages or other marketing-related contracts

Arrange a staff meeting:

The transition period following a dental practice sale is critical for both the short- and long-term success of the practice. By this point, most staff members are likely aware of the sale and may feel uncertain or uneasy. It’s important to meet with them right away to reassure them and demonstrate that you will be a supportive employer, just like the previous owner. Emphasize teamwork, confirm that they will be treated well, and express your expectations for continued performance and growth as you take the practice forward.

Insurance:

Most lenders require commercial and liability insurance. If this has not yet been arranged, it should be done immediately. This coverage will protect you and your team from potential risks such as accidents, theft, or other unforeseen issues.

Letter of introduction:

Prepare a letter to introduce yourself to the patients following the dental practice sale. It is recommended to present yourself as a new professional joining the practice, rather than emphasizing ownership transfer.

Highlight your commitment to providing excellent care and mention that the previous owner is stepping back after years of dedication. This approach helps reinforce a sense of continuity, ensuring patients feel that their care will remain consistent and uninterrupted.

Business number:

Confirm that you or your accountant has applied for a business number. In most cases, the Canada Revenue Agency will issue this automatically when a new professional corporation is registered. An employer number is necessary to process payroll and ensure staff are paid correctly without delays.

Point of sale equipment:

At this stage, your POS system should be installed, connected, and fully operational. All transactions should now be processed through your system, with the previous owner’s terminal removed.

Accounts receivable:

On closing day, ensure you generate a complete list of all accounts receivable belonging to the previous owner. Keep accurate records so you can remit payments according to the purchase agreement. Typically, you will be responsible for collecting these receivables for a period of 90–120 days after closing.

Things to keep in mind

Remember that the patients did not personally choose you as their dentist—you are new to them. Because of this, it is essential to be especially mindful when addressing their concerns. Focus on maintaining the current level of productivity and keep operations consistent for at least six months. Avoid making significant changes during this period, as stability helps build patient confidence.

Maintaining staff continuity is equally important. Patients are already adjusting to a new dentist, and introducing new staff at the same time may cause discomfort and lead them to consider switching practices.

It is also recommended to delay any renovations, even if they seem necessary. Once you’ve spent enough time in the practice and understand both patient needs and operational requirements, you will be better positioned to make thoughtful improvements.

Lastly, take a cautious and conservative approach to treatment planning in the early stages. Continue following similar practices as the previous owner. Patients may be hesitant about new or expensive treatments, especially when recommended by someone new. Gradual changes are best, ideally after patients have built trust and familiarity with you.

Patient attrition following a practice sale typically ranges between 5% and 15%. Following the steps above can help reduce that number.

Alan Rustom