Buying a Dental Practice in California
Buying a dental practice is one of the biggest financial decisions a dentist will ever make. The right acquisition can give you an established patient base, trained staff, and cash flow from day one — but only if the deal is structured correctly and the risks are identified before you sign.
Mostofi Law Group represents dentists across California in practice acquisitions. We handle the legal side of the transaction so you can focus on evaluating the clinical and business fit: the letter of intent, due diligence, the purchase agreement, the lease, and the closing.
Dental deals have issues that general business lawyers often miss. The office lease may not be assignable. The seller's provider contracts and insurance credentialing do not transfer automatically. Patient records, employee matters, and accounts receivable each need specific treatment in the purchase agreement. We address all of it before closing, not after.
From your first offer through the day you take over the chairs, we keep the transaction moving, protect your downside, and make sure what you are buying is what you actually get.
What we handle in a dental practice purchase:
- Drafting and negotiating the letter of intent (LOI)
- Due diligence: financials, compliance history, contracts, and liabilities
- Asset vs. stock purchase structuring and tax-aware deal design
- Negotiating the asset purchase agreement and related documents
- Lease assignment or negotiation of a new office lease
- Coordination with your lender, CPA, and practice broker
- Seller transition and employment agreements
- Licensing, credentialing, and provider-contract transitions
If you are considering buying a dental practice in California, talk to us before you sign anything — even the letter of intent. Early legal guidance costs far less than fixing a bad deal later. Call Mostofi Law Group at 1-866-247-9420 to discuss your acquisition.
Frequently Asked Questions
Should I buy an existing dental practice or start one from scratch?
Buying an existing practice usually means immediate cash flow, an established patient base, and trained staff, while a startup gives you full control over location and design but takes longer to become profitable. The right choice depends on your finances, timeline, and risk tolerance. We can walk through the legal and financial trade-offs of each path before you commit.
What is the difference between an asset purchase and a stock purchase?
In an asset purchase, you buy the practice's assets — equipment, patient records, the name, and goodwill — but generally not its liabilities. In a stock purchase, you buy the entity itself, including its history and obligations. Most dental acquisitions are structured as asset purchases because they are cleaner for the buyer. We will recommend the structure that best protects you.
What should the letter of intent include?
The LOI should cover the purchase price and how it is calculated, what is included and excluded, the due diligence period, confidentiality, and whether the seller stays on during a transition. Although often called "non-binding," parts of an LOI can bind you, so have an attorney review it before you sign.
How long does a dental practice purchase typically take?
Most transactions take 60 to 120 days from accepted LOI to closing, depending on financing, lease negotiations, and licensing. Deals with real estate or complex employment issues can take longer. We keep the timeline on track by identifying bottlenecks early.
What due diligence should I do before buying?
At minimum: review several years of financials and tax returns, verify production and collections reports, check for compliance or malpractice issues, review all contracts and the lease, and confirm the status of equipment and accounts receivable. We coordinate a legal due diligence checklist tailored to dental practices.
Can the seller's office lease be transferred to me?
Sometimes, but many leases require the landlord's written consent, and some prohibit assignment entirely or let the landlord raise the rent on transfer. We review the lease early in the process and negotiate the assignment or a new lease so you are not left without a location at closing.