📖 Approx. 3 minutes ／ Updated 2026.06.24
In this article, an M&A advisor specializing in the healthcare industry explains from a practical perspective how the transfer of licenses and permits becomes a key issue in dental business succession and medical M&A. We will share specific measures based on the balance of insurance and self-pay treatments, securing dental technicians, notifications to public health centers and regional bureaus of health and welfare, and avoiding operational gaps.
1. Industry Background of License and Permit Transfers in Dentistry
According to the Dynamic Survey of Medical Institutions by the Ministry of Health, Labour and Welfare, the business environment for medical institutions, including dental clinics, has become increasingly challenging in recent years due to a combination of factors such as medical fee revisions, rising labor costs, and the burden of capital investment. In particular, interest in third-party succession M&A is growing from the perspective of the balance between insurance and self-pay treatments, as well as securing dental technicians.
At the same time, the transfer of licenses and permits is a critical issue in medical M&A practice. By properly planning notifications to public health centers and regional bureaus of health and welfare to avoid operational gaps, a succession that benefits both the seller and the buyer can be achieved.
2. Key Practical Points
- Preparation: Organize dental-specific workflows, patient bases, and equipment status to clarify the terms of the transfer.
- Valuation: Calculate an appropriate transfer price range considering the characteristics of the clinical department. In dentistry, the balance of insurance and self-pay treatments and securing dental technicians are key evaluation factors.
- Designing License and Permit Transfers: Select the optimal scheme based on notifications to public health centers and regional bureaus of health and welfare, as well as avoiding operational gaps. Verification from tax, legal, and labor perspectives is also required.
- Sourcing and Matching: Select potential buyers that match the characteristics of the clinical department from a nationwide network. Carefully align the desired conditions of both parties.
- Due Diligence: Conduct thorough investigations from financial, legal, labor, and clinical practice perspectives. Dental-specific licenses, permits, and facility standards will also be verified.
- Final Agreement & Closing: Execute the final agreement, including representations, warranties, and indemnification clauses. The transfer of licenses and permits, along with staff announcements, will proceed in parallel.
3. Specific Considerations in Dentistry
In dental M&A, the balance of insurance and self-pay treatments, and securing dental technicians hold the key to a successful succession. There are numerous individual issues depending on the characteristics of the clinical department, such as the continuity of the patient base, retention of staff (dentists, nurses, and allied health professionals), the condition and replacement plans of equipment, and the maintenance or acquisition of facility standards.
In addition, strategic design based on market characteristics unique to dentistry—such as the balance of insurance and self-pay treatments, the status of regional medical cooperation, and relationships with neighboring competing clinics—is crucial. Leveraging our track record in supporting dental successions, we provide practical support from an industry-specialized perspective.
4. Practical Details of License and Permit Transfers
The transfer of licenses and permits is an area that requires specialized consideration in medical M&A. Designing the process based on notifications to public health centers and regional bureaus of health and welfare, while avoiding operational gaps, is the key to success.
- Review of Relevant Laws and Practical Standards: Compliance and preparation based on the Medical Care Act, tax laws, and labor regulations
- Collaboration with Experts: Working with certified public accountants, tax accountants, attorneys, and labor and social security attorneys
- Risk Assessment: Identifying potential risks and formulating mitigation strategies
- Consensus Building Between Parties: Designing mutually agreeable terms for both the seller and the buyer
- Proper Documentation: Clearly defining terms in the Letter of Intent (LOI) and the Definitive Agreement (DA)
Frequently Asked Questions
Q. What documents are required for the initial consultation?
A. It will facilitate a smoother process if you can prepare financial statements for the last three fiscal years, patient volume trends, staff composition, an equipment list, and lease agreements (if applicable) in advance. We will collect these after executing a Non-Disclosure Agreement (NDA).
Q. What is the average market price for transferring a dental clinic?
A. For dental clinics, the valuation is based on the balance of insurance and self-pay treatments and securing dental technicians. As a general guide, clinics without beds are valued at 0.5 to 1.5 times annual revenue, while clinics with beds or hospital-scale facilities are valued at 3 to 7 times EBITDA. We can provide more details through our free preliminary valuation.
Q. What should I keep in mind when transferring licenses and permits?
A. Prior planning that accounts for notifications to public health centers and regional bureaus of health and welfare, as well as avoiding operational gaps, is essential. Seamless execution through collaboration with experts is the key to success.
Q. Will my staff or patients find out about the consultation?
A. Information is disclosed on a strictly limited basis only after executing an NDA, and no disclosure is made to stakeholders prior to the final agreement. We guarantee absolute confidentiality.
Related Columns
- Complete Guide to Hospital and Medical Corporation Business Succession | From Shortage of Successors to Success Stories in Medical M&A Practice
- Complete Guide to Clinic Sales and Transfers | Market Prices, Process, and Key Considerations Explained by Medical M&A Experts
- How to Proceed with Medical M&A and Hospital Succession | A 6-Step Guide from Consultation to Closing with Real Examples
- Complete Guide to Tax Schemes in Medical Corporation M&A | Key Issues for Tax Accountants and CPAs
Contact M&A Medical for Consultations on Dental License and Permit Transfers
Strict Confidentiality • Free Initial Consultation • Success Fee Basis