Are there any known license, legal or financial problems that could negatively impact the practice?
Date this practice was established (long term vs. short term).
Dental School attended by the Seller and year graduated.
How much continuing education courses does the owner take each year?
What is the owner’s philosophy of Dentistry?
How was the purchase price established?
Is the staff aware of the owner’s desire to sell?
Is there any reason to believe that the current staff will not stay with a new owner?
Employee Manual. What is their position and what are their job descriptions/salaries/benefits? What days/ hours they work?
Does the owner’s spouse work in the office and at what compensation?
What is the number of Hygiene days in the practice and the average hygiene production per day?
Has there been an associate in the practice? How long?
What are the office/dentist’s hours? Review the appointment book and day sheets.
How much time away from the office was taken by the owner (days worked)?
Number of active patients (within the past 2 years).
Number of new patients per month. How are they generated (i.e. referrals from existing patients, advertising, religious or political organizations)?
Average number of patients per day seen by the dentist/hygienist. Approximate average age of patients.
Makeup of patient base (i.e. private/insured/Cap/PPO, etc.). What percentage of patients are covered by insurance and other 3rd party coverage?
Where are the patients coming from (i.e. demographics, the general ethnic mix)? What is the breakdown of services (procedures performed)?
What type procedures and dollar amount is referred out to specialists?
When was the last time the patient charts were cleaned out (purged)?
Do a chart audit to see if you can offer the mix of services needed by the patient population. Review the fee schedule – When was it last updated?
Is the practice computerized? What type software?
How far in advance is the appointment book filled for the dentist and the hygienist?
What is the current accounts receivable balance and the age analysis (0-30, 30-60, 60-90, over 90 days)? What is the collection history?
What type financial arrangements are made and who is responsible?
What type practice promotion/marketing is being used? Advertising? Website? Facebook?
Review the financials including tax returns and profit & loss statements.
What has been the growth rate of the practice?
Is the practice located in a desirable area and convenience of access?
What is the social/economic profile of the area (community)?
Check out the equipment and supplies on hand. Should be evaluated.This includes dental equipment, hand instruments, dental and office supplies and any leasehold improvements.
What is the age and serviceability of the equipment?
Office square footage – general description of office. How many ops? How many fully equipped? Is the space adequate? Is there room for expansion? How well designed is the office?
Lease for the office – terms and conditions. Is the lease a gross lease or triple net (NNN)? Is the lease assignable? Is the rent fair market? Is there an option to renew? Does the seller own the facility/building? Does the owner pay himself rent?
