When purchasing a dental practice, the banker and your CPA will be looking at the practice data.
However, do you really know what you are buying?
- Does any of the equipment need replacing within the next couple of years?
- Does the office properly diagnose and present treatment? Evaluate at least 50 charts (depending upon the size of the practice). Does your practice philosophy match the sellers? Do they “under-diagnose” or “overdiagnose”?
- How much pending treatment is there on the active patients?
- Do you know how many active patients are in the practice?
- Where do the patients currently come from primarily? (Is the current doctor heavily involved in a community or religious group that provides a steady stream of new patients?)
Other things to consider include:
- What outstanding bills for labwork, supplies, or equipment are outstanding?
- Does the office have any ongoing service contracts with suppliers, Medical waste providers, other service providers, or Yellow Pages, or website companies?
- Who will handle any “redo’s” on treatment and within what time frame will they cover it?
For a detailed list and help with the practice purchase, call Tanner Management 916-791-2720
or email JoAnne@TannerMgmt.com