S9E3: What Makes a Dental Buyer “Ready” in the Eyes of a Banker

FREE "Ready" Kit — everything my clients use to get ready to buy a practice:

https://www.dentalbuyeradvocates.com/ready

RESOURCES

• The book, How to Buy a Dental Practice:
• Book an Intro Call to Learn More: Book a call with our team, here.

Buying a dental practice feels scary for a reason—but the bank may already be telling you you're closer than you think. Brian Hanks and returning guest Mike Pakula, a healthcare lender with Bank of America, break down what “ready” actually looks like to an underwriter and why so many dentists overestimate the amount of perfection they need before they can buy.

If you've been sitting on the fence because you don't “feel ready,” this conversation gives you a reality check and a roadmap. Mike explains how banks evaluate dental buyers using two major filters; 1. production and 2. liquidity.

In this episode you'll discover:

• Why dentists are considered one of the safest small-business bets a bank can make
• The difference between being underprepared and simply feeling nervous
• What lenders mean by production, liquidity, and debt-service coverage
• The 20% to 25% cash-flow buffer most banks want to see
• Why seller or practice issues usually kill deals more often than the buyer does
• How a near-miss buyer lost sleep over two tiny issues—and almost walked away from a life-changing deal

Mike also shares what underwriters flag most often, how student-loan payments affect lending decisions, why buying the whole practice usually beats buying in, and why purchasing the building can be a major wealth move.Most importantly, he gives one simple action you can take this week to become more fundable: know your production number and raise it if needed.Essential listening if you're considering practice ownership, wondering whether your finances are strong enough, or trying to turn anxiety into an actual acquisition plan.

Brian Hanks is the host of the Practice Purchase Podcast, owner of Dental Buyer Advocates, and author of How to Buy a Dental Practice.

Mike Pakula is a lender in Bank of America's Practice Solutions Division, with 15 years of experience financing healthcare and dental deals across the U.S.