What Is Acquisition Finance in Dentistry?
Acquisition Finance refers to loans or funding used to buy, buy into, or buy out ownership of a dental practice.
It is one of the largest financial decisions a dentist will make, often involving six- or seven-figure lending structured over long repayment terms.
Why Does Acquisition Finance Matter for Dental Practice Owners?
Acquisition finance is the gateway to ownership and growth. Whether you are:
- A first-time buyer acquiring your first practice
- A partner buy-in joining an established clinic
- A buy-out securing full ownership from other partners
- A multi-practice owner scaling into a group
…the financing structure determines your cash flow stability, profitability, and long-term valuation.
Example:
- Purchase price: £1,200,000
- Loan: £1,000,000 over 15 years at 6%
- Monthly repayment: ~£8,440
- If EBITDA exceeds repayments comfortably, acquisition is viable and wealth-accretive.
What Types of Acquisition Finance Exist?
| Type | Purpose |
| Practice Buy-In Loans | Finance for associates to purchase equity in a practice |
| Partner Buy-Out Loans | Enable one partner to exit, transferring full control to others |
| Full Acquisition Loans | Funding to purchase 100% of a practice |
| Group Expansion Loans | Finance to acquire additional practices into a portfolio |
How Does DentPulse Help Manage Acquisition Finance?
| Feature | Function |
| Loan Register | Tracks balances, terms, and repayment schedules |
| CFFP™ (Cash Flow Future Pairing) | Models repayments against future inflows to protect liquidity |
| Profit-to-Pocket™ | Shows impact of debt on safe owner drawings |
| OWS™ Integration | Connects acquisition debt to long-term wealth outcomes |
| Valuation Drivers Dashboard | Ensures purchase price aligns with EBITDA multiples |
DentPulse turns acquisition finance from a risky leap into a controlled wealth-building strategy.
DentPulse Tip™
“Acquisition debt is not bad debt — if the practice you buy pays for itself.”
Related Glossary Terms
- Practice Loans – general financing for growth or refurbishments
- Working Capital Loan – liquidity funding separate from acquisitions
- EBITDA – valuation driver in acquisition pricing
- OWS™ (Owner Wealth Score) – measures long-term impact of buy-ins or buy-outs
- Practice Valuation Drivers – profit and stability benchmarks for acquisitions
Glossary Summary Table
| Term | Meaning |
| Acquisition Finance | Loans to fund buy-ins, buy-outs, or full practice acquisitions |
| Purpose | Enable ownership growth and practice expansion |
| DentPulse Advantage | Models repayments, protects cash flow, and links acquisition debt to owner wealth |
