In this episode of How to Open a Dental Practice, banking expert Lori Riley breaks down the financial realities of acquiring a dental practice versus launching a startup. With 18 years of lending experience and deep expertise in dental acquisitions, Lori explains how banks evaluate risk, cash flow, borrower production history, practice profitability, and transition readiness. New dentists looking to buy their first practice will gain a clear understanding of what lenders look for—and how to avoid financing mistakes that can derail an acquisition.

Listeners will learn how practice valuation truly works, why two $1M practices can have completely different profitability, and how lenders determine whether a buyer has the production capacity to maintain or grow the business.

Topics include:

●       How banks evaluate dental practice acquisitions and lending risk

●       Why profitability—not collections—determines true practice value

●       Common financing challenges new dentists face

●       How lender conditions work (seller stay-on periods, production history, etc.)

●       Startup vs. acquisition lending: what banks see differently

●       What happens if a seller can’t complete their transition period

●       How to prepare financially before approaching a lender