Build or Buy: Dentistry Practice in Ontario
For dentists in Ontario planning to open or expand a practice, one of the biggest strategic decisions is whether to build a new clinic from the ground up or buy an existing practice. Both options can be successful, but each comes with different financial, operational, and lifestyle implications. Understanding these differences helps dentists align their choice with long-term goals.
Buying an Existing Practice
Dentists Choose This Path because Purchasing an established practice is often the most practical entry point for new owners.
Advantages
- Immediate cash flow: Patients, staff, and systems are already in place.
- Predictable financials: Historical revenue and expense data make lender approval easier.
- Established reputation: The goodwill of the practice reduces initial marketing costs.
- Simpler transition: A turnkey operation minimizes downtime and risk.
Considerations
- Higher upfront purchase price due to goodwill and existing assets.
- Inherited systems: You may need to modernize equipment, software, or workflows.
- Cultural transition: Staff and patients may take time to adjust to new leadership.
Best For Dentists seeking stability, immediate income, and a lower-risk entry into ownership.
Building a New Dental Practice
Some Prefer to Start Fresh because Starting from scratch allows dentists to design a clinic aligned with their brand, workflow, and technology preferences.
Advantages
- Complete control: Layout, equipment, branding, and patient experience reflect your vision.
- Modern infrastructure: Ability to implement the latest digital, radiology, and sterilization systems.
- Scalable foundation: Build the clinic to match long-term growth plans.
Considerations
- Slower revenue ramp-up: It may take 12–24 months to reach stable patient volume.
- Higher project complexity: Leasing, construction, permitting, and hiring all require planning.
- Marketing investment needed: New clinics rely heavily on digital marketing, referrals, and community presence.
Best For Dentists with strong marketing confidence, long-term vision, and the financial capacity to manage a ramp-up period.
Financial Factors to Evaluate
- Upfront Costs : Building often involves construction, equipment, and setup expenses, while buying typically requires a higher initial purchase price due to existing goodwill. Understanding your available capital and comfort level with upfront investment is essential.
- Cash Flow: Established practices generate immediate revenue, while new clinics take time to build patient volume. Assess how long you can support lower income during the early stages.
- Financing: Lenders may favor acquisitions due to predictable financial history, while new builds often require detailed plans and projections. Early conversations with lenders help clarify your options.
- Operating Efficiency: New clinics may offer modern, efficient layouts, while existing practices may require upgrades. Consider the long-term cost of operations, not just the initial investment.
- Long-Term Value: Your choice should reflect your vision—whether you want immediate stability or long-term customization and growth potential.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
