A dentist can find the right dental practice for sale in 2026, secure a lender, and still watch the deal fall apart a week before closing because working capital was underwritten too loosely. That is happening more often in today’s market as lenders, landlords, and buyers all take a harder look at liquidity, staffing costs, and deferred facility expenses.
Here’s what most dentists do not realize: the purchase price is only one part of the deal. Burnett Facer of the Schilling Team, who specializes in dental real estate, helps buyers look past the headline number and focus on the cash requirements that determine whether an acquisition actually works.
Why Working Capital Matters When You Buy Dental Practice in 2026
If you buy dental practice assets with only enough cash for the down payment and closing costs, you can create immediate pressure on payroll, supplies, marketing, and equipment repairs. In April 2026, that risk matters even more because many lenders still want to see stronger post-close reserves, especially when the office has aging equipment or a lease renewal coming up.
This is where deals are won or lost. A practice may show healthy collections, but if accounts receivable are slow, hygiene production is uneven, or the seller has postponed major maintenance, the buyer can inherit a cash squeeze on day one.
If you are evaluating a dental practice for sale right now, talk through your reserve strategy before you sign the LOI.
The 4 Cash Buckets Buyers Commonly Miss
1. Payroll transition costs
Even a stable team can create extra short-term expense. Retention bonuses, overlap training, and replacing one key employee can hit fast.
2. Supply and lab normalization
Some sellers cut ordering before exit to inflate short-term margins. Buyers then need a larger-than-expected cash injection immediately after closing.
3. Deferred equipment and buildout costs
A practice may look operational, but worn chairs, compressor issues, imaging upgrades, or cosmetic front-office problems can force early capital spending. That affects both dental office financing terms and your broader dental real estate strategy.
4. Lease and occupancy adjustments
If the lease is near expiration, if CAM charges are rising, or if a landlord requires new deposits or personal guarantees, your true acquisition cost is higher than the contract price suggests.
How Lenders and Sellers Look at This Differently
A lender may approve the acquisition based on historical cash flow, but the buyer still has to survive the first six to twelve months. Sellers, meanwhile, often focus on valuation and assume the buyer will “figure out” post-close cash needs.
That gap is expensive. If this is structured incorrectly, it can cost you hundreds of thousands through emergency borrowing, diluted growth plans, or a forced refinance on weaker terms.
The smarter move is to underwrite the transaction in three layers:
Cash flow
Review normalized EBITDA, provider concentration, procedure mix, and receivables timing.
Real estate
Review lease term, options, annual increases, assignment language, and any upcoming tenant improvement obligations tied to the dental office.
Reserves
Model how much cash you need at closing, 30 days after closing, and 90 days after closing.
Before committing, have the Schilling Team pressure-test both the practice numbers and the dental real estate obligations.
Common Mistakes That Hurt Buyers
- Using every dollar for down payment and leaving no operating cushion
- Assuming seller-reported expenses reflect true replacement costs
- Ignoring lease rollover risk during acquisition underwriting
- Underestimating how equipment updates affect dental practice valuation and financing flexibility
Strategic Recommendations for 2026 Buyers
In this market, buyers should negotiate for more than price. They should push for usable working capital, clear equipment condition disclosures, and lease terms that support refinancing or future resale. A great acquisition is not just a practice you can close on. It is a practice you can stabilize, grow, and eventually sell from a position of strength.
That is why sophisticated buyers bring in advisors early. The Schilling Team helps dentists evaluate the full transaction, from site control to cash requirements to exit flexibility.
If you are considering a dental practice for sale, schedule a confidential review before you commit your earnest money.
Reach out to the Schilling Team and connect with Burnett Facer at (949) 212-1346 for a confidential consultation and real numbers on your next move.