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When do dental practices buy equipment around a sale?

For firms that serve dental practices, equipment buying shifts around a sale: a seller may defer purchases before listing, and a buyer may upgrade after closing, while ownership itself is changing (72.5% of dentists in private practice owned their practice in 2023, down from 84.7% in 2005, per the ADA Health Policy Institute). Reps who ask early see both sides.

By DDSIntel Editorial· Published · Data as of

Key numbers

Why might a selling dentist delay equipment purchases?

A dentist planning to sell may avoid large purchases because spending shortly before a sale may not raise the price, while deferred replacement can lower normalized earnings in a buyer’s review. The tradeoff is real, so a rep should ask about timing rather than assume, and never treat a deferral as proof of a sale. See the equipment reps hub.

See normalizing dental EBITDA for how deferred replacement affects earnings.

What do buyers and DSOs buy after closing?

Buyers often refresh equipment, imaging and operatories after closing to match their standards, and DSOs may standardize across offices. Timing is usually in the first year of ownership. A rep can ask the buyer about priorities and about who approves purchases, because approval may move from the former owner to a central team.

The DSO hub describes how buyers plan growth.

How should a rep time conversations around a transition?

Talk to the owner about long-term planning before any sale, offer to schedule replacements around the owner’s plans, and approach a new owner within the first weeks after a change. The average dentist retires at 68.7 after a 41.3-year career, so a long relationship often spans a succession. See lab accounts after a sale.

How do new locations create equipment demand?

De novo and relocated offices need a full equipment package and a build-out on a schedule. Public-record facility events can precede an opening, so aggregate signals help a rep see where activity is rising. See DSO de novo site selection and the contractors hub.

Frequently asked questions

Should a rep ask a dentist if they plan to sell?

Ask about long-term plans and replacement timing in general terms. Respect confidentiality and never assume intent.

Do DSOs buy equipment centrally?

Many do, but each organization decides. Ask the buyer how approvals work.

Where do the ownership figures come from?

From the ADA Health Policy Institute’s 2023 practice ownership analysis, listed on the data hub.

Do new locations need equipment before opening?

Yes. A de novo or relocated office needs its equipment installed before it can see patients, so orders precede the opening.

Sources

  1. ADA Health Policy Institute. Practice Ownership Among Dentists Continues to Decline (November 2023). ada.org.
  2. ADA Health Policy Institute. The dentist workforce. ada.org.

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