Should a Dental Practice Buyer Keep the Existing Staff?

When someone buys a dental practice, the team that comes with it, hygienists, dental assistants, front desk staff, and sometimes other associates, often plays a big role in how smoothly the transition goes. Patients tend to feel more comfortable when familiar faces are still there, and staff who already know the systems can help keep things running while the new owner settles in.

That said, keeping the existing staff is not automatic, and it is not always the right call in every situation. Below, we look at some of the factors a buyer may want to consider before deciding.

Continuity Can Support a Smoother Transition

Patients often associate their comfort and trust with the people they see at each visit, not just the dentist. When staff stay on after a sale, patients may be less likely to notice a disruption, and may be more likely to stick with the practice rather than looking elsewhere. Staff familiarity with patient histories, scheduling habits, and office workflows can also reduce the learning curve for a new owner.

For these reasons, many buyers view staff retention as a practical way to protect the value of the practice they are purchasing, at least in the short term.

But Continuity Should Not Be Assumed

Even where a buyer wants to keep the team in place, it is worth reviewing each employee's situation individually rather than assuming everything will carry over automatically. Existing employment terms, including compensation, hours, benefits, and any written agreements, may or may not transfer to the new owner depending on how the transaction is structured and what is negotiated as part of the deal.

In some transactions, employees are formally offered new employment by the buyer, while in others, the buyer takes over existing employment relationships more directly. The approach can affect what obligations the buyer takes on, including things like accrued vacation pay or length of service.

Review Written Agreements and Compensation Structures

Before deciding who to keep and on what terms, a buyer generally wants to see any written employment agreements, along with details on how each employee is currently compensated. Dental staff compensation can vary quite a bit, sometimes including production-based incentives, commissions, or other arrangements that are not always obvious from a simple payroll summary.

Reviewing these details early may help the buyer understand ongoing costs, avoid surprises after closing, and decide whether any compensation terms need to be renegotiated going forward.

Consider Performance and Fit, Not Just Familiarity

Keeping staff for the sake of continuity is only part of the picture. A buyer may also want to understand how each team member has performed, how they interact with patients, and whether they are likely to work well under new ownership. This is not always something a purchase agreement can capture, and it often requires some direct conversation, ideally handled carefully and at the appropriate stage of the transaction to avoid disrupting the practice before closing.

In some cases, a buyer may choose to keep most of the team but make changes to one or two roles, depending on the practice's needs going forward.

Understand the Liabilities That May Come With Staff

Taking on existing staff can also mean taking on certain liabilities, depending on how the transaction is structured. This may include obligations related to notice periods, severance, or accrued entitlements if a position changes or is eliminated down the road. Buyers should understand these risks before finalizing the deal, rather than discovering them after the fact.

A lawyer who regularly works on practice purchases can help review these issues as part of the broader due diligence process, alongside the financial and clinical aspects of the transaction.

Keeping the existing staff after buying a dental practice can offer real benefits for patient continuity and day-to-day operations, but it should be a decision made with full information, not just convenience. Reviewing employment terms, compensation structures, and any liabilities tied to current staff can help a buyer avoid unexpected costs and plan a transition that works for the whole team.

If you are considering purchasing a dental practice, it is generally worth having a lawyer review the employment side of the deal alongside the purchase agreement itself.

Frequently Asked Questions

Q: Does a dental practice buyer have to keep all existing staff after a purchase?

A: No, there is generally no requirement to keep every employee. Whether staff continue depends on the structure of the deal and what the buyer decides, though there may be legal considerations depending on how employment is transferred.

Q: Do existing employment agreements automatically transfer to a new practice owner?

A: Not always automatically. Depending on how the transaction is structured, employees may be offered new employment by the buyer, or existing agreements may carry over. This should be addressed clearly in the purchase agreement.

Q: Why is staff continuity considered valuable in a dental practice sale?

A: Familiar staff can help patients feel comfortable during a change in ownership, and they often understand the practice's systems and patient histories, which may reduce disruption during the transition.

Q: What should a buyer review before deciding to keep existing staff?

A: A buyer generally wants to review written employment agreements, compensation and benefit structures, and any potential liabilities, such as notice or severance obligations, before making decisions about staffing.

Speak With DevLaws

If you have questions about the issues raised in this article, the team at DevLaws is here to help you understand how they may apply to your situation. Contact us to discuss the specific facts of your case.

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Disclaimer: This article is for general information purposes only and does not constitute legal advice. Every situation is different, and the outcome of any legal matter depends on the specific facts involved. If you have questions about your particular circumstances, you should speak with a lawyer.