BUYING A PRACTICE
Once you locate a practice that you would like to purchase, it is important that you perform a thorough due diligence. We have created a guideline of items to ask the Broker and the selling dentist during the due diligence period. It is imperative that you understand all aspects of the practice and are comfortable with your new practice. The process of purchasing a practice is never easy and can be very complicated, therefore you should be very diligent and thorough in your analysis.
- What year was the practice established?
- Has the practice always been in the same location?
- What is the reason for the sale?
- What are the current office hours?
- 3 years of corporate Tax Returns
- Current P&L
- 2 years of bank statements
COMPUTER SOFTWARE REPORTS
- Fee Schedule
- UCR and top utilized insurance companies
- 3 years of Production/Collection Reports
- For each provider, including hygienists
- Patient Demographic Report
- New Patient Report, by month
- Current Accounts Receivable Report
- Active Patient Report, by year
- 2 years of employee W2’s
- 2 years of employee 1099’s
- Is there an employee manual?
- What is the current pay rate and days worked?
- What is the length of employment for each employee?
- Has an associate ever worked at the office? If so, what is their daily production?
- How many days of hygiene and what is the daily production?
- Has any staff recently left the practice?
- Has anyone new been hired?
- Original office lease
- How many years remain on the lease?
- Are there any options to extend the lease?
- Is the lease gross or triple net?
- Are there any additional monthly costs?
- Office inventory list
- List of PPO plans
- List of HMO plans
- For HMO, what is the monthly capitation amount for the last two years?
- What is the breakdown collections, by insurance?
- What promotions are currently in effect?
- How many new patients does the practice get from each practice promotion?