A Checklist for Buying a Dental Practice

If you’re in the market to buy a dental practice, it’s helpful to review a checklist first to ensure you're checking off all your boxes. There are a few big things you need to consider, followed by a number of smaller items.

Buying a Dental Practice: The Basics

The following are the more pressing items on your checklist:

  1. Secure financing. Nothing is more threatening to the close of a transaction than delayed financing. Get a loan secured first, then go to the negotiating table.
  2. Gain a clear understanding of the health of the practice. What demographics does the practice serve? What’s the frequency of patient visits? How are most patients paying for their care? What upgrades or improvements need to be made?
  3. Hire a lawyer and an accountant. This purchase is too important to risk without legal and financial experts.
  4. Gather financial data. You’ll want to review tax return statements, balance sheets, profit and loss statements and more. And don’t forget to review overhead costs and the terms of the lease or mortgage of the building.

Other Checklist Must-Dos

There are many other things you should consider before buying a dental practice. Below are some items you'll want to ensure you receive so you have a clear picture of the dental practice:

  • All financial documents
  • A list of all accepted insurance providers and patient financing options
  • A breakdown of all the advertising the practice utilizes, along with the contracts for each
  • A patient list with a detailed breakdown by zip code, demographic, frequency of visits, etc.
  • Copies of patient communication via newsletters, bulletins, etc.
  • Copies of the practice’s fee schedules and the date of the last fee increase
  • A detailed summary of all inventory and equipment that conveys with the transaction
  • Information about the staff’s pay, benefits, licenses, schedules, etc.

Putting together a formal checklist of items will help you make sure you’re covering all your bases and avoiding some of the common pitfalls of buying a dental practice.

Acquiring a dental practice requires a lot of due diligence prior to the purchase, and a lot of practice management after the fact. Learn how Benevis can help with both pieces of this dental practice puzzle.

 

Zac Rhinesmith

Zac Rhinesmith

770 710 3042 Email me

Zac joined Benevis as a Manager of Talent Acquisition in 2015. He works to identify dentists who would be interested in ownership opportunities at our affiliated practices across the United States. Zac enjoys really getting to know the dentists he works with so he can help them purchase a practice that perfectly suits their needs. Zac spends his free time with his wife and two dogs. When the weather gets warm, you can usually find him on the lake, at a Braves game, or playing golf.

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