Buying a dental practice can affect your career as a dentist for a long time and is one of the biggest investments of your lifetime. Being able to acquire a practice can provide you with a sense of accomplishment and satisfaction. But buying the wrong practice can leave you wasting your hard-earned money and precious time. Thus, before you make your final buying decision, consult with an Anaheim Dental Attorney first. Your attorney can review the legal side of things for you and ensure your best interests are protected. They will do their due diligence with you, so you can determine whether a dental practice matches your present and future needs. Your due diligence is your opportunity to learn more about a practice and verify any representations made about it. Here’s what your due diligence must include:
Reviewing the Financial Reports of the Practice
Review the last three months of the practice’s financial reports. These reports must include an interim income statement, and the last three years tax returns. Usually, it is best to get such information analyzed by an accountant or acquisition consultant to make sure you do not miss any related details.
Looking Into Patient Records
Ensure you know how many active patient files the dental practice has. You can turn to a practice consultant for helping compile such information if the current practice owner is not aware of the specific numbers. The consultant can set careful parameters as they examine file samples. Also, they can secure an agreement that allows for claiming of damages when the seller seriously misrepresents information in their summary report. This agreement can easily be drafted by your dental attorney.
Examining Staff Records
These records will show how long staff members have been with the dental practice and whether anyone is associated with the seller. Also, they should demonstrate the benefits the staff is currently getting, so you can decide which benefits you will give in the future. Consider meeting with every staff member, so you can get a new perspective on the dental practice and evaluate the staff’s strengths and weaknesses.
Assessing the Practice’s Condition
You must determine if the dental practice requires repairs or cleaning or if it is in good shape. You might need to replace furnishings and carpets or repair an area once the purchase of the practice has been completed. In this case, you need to calculate how much you need to get the work done. This way, you can consider it when you discuss the price you will have to pay for the practice.
