buying a dental practice checklist

The more you and the seller are able to agree upon in the letter of intent, the smoother the transaction will proceed. The exact documents that you need to file vary widely by location. What’s on your mind? It should also inform them of changes (if any) they should expect in the service they will receive on their next and subsequent appointments. Include seller’s letter to his patients, with Buyer’s approval. Whether you are buying a dental practice, starting a dental practice from scratch, or looking to sell your dental practice, there are many things to keep in mind. Dental Practice Transition Checklist: Making a Smooth Transition. By filing your request in person and paying an additional service fee, you can receive a response within a guaranteed time frame (CA SOS current processing times) that will help to ensure that your professional corporation is set up before your closing date. That is where an experienced dental attorney comes in. 8/28/2017 1:37:50 PM | Comments: 0 ... Views: 470 Transitioning a dental practice is an intricate process, and can seem overwhelming if you are approaching or going through the process. In addition, the paperwork requirements are significant, requiring a great deal of time and effort. There are four key stages in buying or selling a Dental Practice. It should be part of your practice … For more information, contact your state dental society. These documents show the dentist that if he or she accepts your offer, the practice will be in good hands. This checklist and related resources can be used as a starting point to address many of the issues dentists encounter when opening new practices. The practice purchase checklist. We look forward to talking to you! Review the accounts receivable if they are part of the purchase. A letter of intent, which is typically non-binding, is a way of communicating to the seller that you are serious about buying their practice. Decide how payroll will be handled. Obtain Federal I.D. Make sure all blanks are filled in, and that all terms are as expected. PURCHASING A DENTAL PRACTICE: DUE DILIGENCE CHECKLIST© Financial Records Tax returns (personal/corporate) ... Any reason they know of not to buy the practice Seller's Staff What longevity of staff ... or dental equipment Get copy of Office Lease Is the dental office in OSHA compliance THE GOLDMAN LAW FIRM, 55 TIBURON, CA 94920 Aside from the issues discussed above, there are other matters to consider before signing a letter of intent in order to decide whether and how to purchase a practice, which may help the buyer to purchase the practice in an efficient and cost-effective manner. Do Not Buy or Sell a Dental Practice Until You Read This The market is changing and the “seller’s market bubble” is showing signs of deflation. It will typically be provided by the seller’s attorney and reviewed by your own dental attorney to make sure that the terms are fair. Registrati e fai offerte sui lavori gratuitamente. Ouality of Care Philosophical concurrence with Seller as to practice of dentistry. Each state and territory has slightly different requirements for buying a dental practice. For a successful transaction, it is important to set up clear and detailed expectations. Make appointments to go see each practice and speak with those in charge. It is absolutely essential to do your homework, ensuring that the practice you select will truly serve your needs. Your Southern California Dental Practice transitions experts at First Choice Practice Sales have developed a 20 step dental practice buying guide! Odds are you have worked hard as an employee or associate somewhere before owning your practice. With a completely … Do your homework, assemble an experienced team, and take the time to help smooth the transition for both patients and staff. Let's say practice "A" has a profit of $241,000, practice "B" has a profit of $192,000, and practice "C" has a profit of $164,000. Heads of Agreement. numbers (usually applied for by CPA) Transfer Seller’s unemployment rate to Buyer if beneficial to Buyer (see CPA) if, after closing date, Seller will not be paying payroll taxes in the State of California. At a minimum, you and the seller should address the following terms in your LOI: Any terms that are not agreed upon in the letter of intent will be negotiated by the parties prior to signing the final practice purchase agreement. We use cookies to ensure that we give you the best experience on our website. If you’re opening a new dental practice, there are many things to consider, including licenses, local requirements, supplies, insurance, infection control and OSHA, just to name a few. Whilst our team have helped thousands of dentists make the transition from an associate to principal we are always aware that dentists looking to buy a dental practice will very often need help and guidance. and State I.D. Learn as much as you can about the practice’s current financials. Pre-contract 2. H. t So…you either sell soon, which should be an option for you dentists who are presently on the fence, hanging on, or Buying a dental practice: part three. In practice, an investor can often sell the calls for a higher price (some price between the bid and ask) and … Here is a checklist to keep you on track when buying a dental practice. If you continue to use this site we will assume that you are happy with it. Buying an Existing Practice. Due-diligence 3. Are you a recent dental school grad, associate, or just looking to expand your current practice? Due diligence is an essential part of purchasing a practice, as it allows the buying dentist to fully examine the seller’s practice and confirm the material facts provided by the seller or practice broker. Therefore, a lowball offer, like you might make for real estate, is inappropriate. If you are assuming equipment leases, contact the lease companies for the proper assumption documents. A signed lease agreement or assignment (with a term equal to length of loan) Corporate documents, including articles of incorporation and tax ID number. A term sheet is also called a letter of intent (LOI), and a memo of understanding (MOU). Get help from the experts and you cannot go far wrong. It can be quite overwhelming with a lot of factors to consider before acquiring your own dental practice. If you’re planning to buy a dental practice, you need to make sure you don’t neglect any critical steps so that you ensure a successful sale and transition. December 13, 2019 / by kck / in Dental Instruments. Although you are buying an existing practice, it is important to adjust it to your needs and goals. Even the most experienced general business attorney may unfamiliar with the dental industry’s legal standards and conventions. Research Phase. 1. For more information, contact your state dental society. Order new equipment if needed. If desired, present a letter from the seller to the patients, employees, or both, to help them understand why the previous dentist left. At Odgers Law Group we have developed a tailored approach to meeting the needs of dentists and physicians with our specialized knowledge of their practices. Creating your own dental checklists. If you are interested in learning how to take your dental practice to the next level, please contact us today at (800) 983-4126. With your lawyer, go through the sales contract with a fine-tooth comb. Not only does transitioning a practice include the financial challenges but the emotional and relational ones as well. This article will take a page from Late Show Host David Letterman’s monologue and enlighten you about my “Top Ten List” for Dental Practice Buyers. Your Toolkit Includes: Buyer’s Due Diligence Questionnaire – See the Best Questions to Ask the Selling Doctor! 15 mar 2017 For those who are currently looking to grow their own medical practice or are considering investing in one, it … Doctors’ Offices Grammar Lecture halls and board rooms are different … Research Phase The first step is to research available practices in the area you would like to serve. No assumption of liabilities? Have you thought about buying a dental practice but don’t know where to start? Too many dentists try to open a dental practice based on bad advice. Contract negotiation 4. Pre-Contract. Interested in learning from a Dental Practice Sales veteran? This checklist and related resources can be used as a starting point to address many of the issues dentists encounter when opening new practices. However, as with most things in life, with great work comes great rewards. Moreover, every bank has its own set of conditions and documents that you will be required to provide in order to obtain funding. Accounts receivable Listing of participating insurance programs. In much the same way that you would not engage a makeup artist to perform complex cosmetic surgery, neither should you engage an attorney to assist you in a dental transaction who has no experience handling the acquisition of a dental practice. Your dental attorney or CPA should be able to put you in touch with several local banks who specialize or have experience lending to dental or other medical professionals. Running a dental practice is complex. Let's say practice "A" has a profit of $241,000, practice "B" has a profit of $192,000, and practice "C" has a profit of $164,000. Understanding the process of buying a dental practice will help you protect your investment and shield you from any unnecessary liability. Buying a dental practice is complicated, but the rewards can be significant. As a dental practice appraiser and broker . Buyers Checklist. Dental Service Organization Trends for 2019…. You’ve had a long road to get to where you are! The first step is to research available practices in the area you would like to serve. Once signed, these agreements will be submitted to the bank so that the bank can finalize the underwriting for your practice loan and transfer the funds to the seller. This living document will include your business strategy, standard operating procedures, costs, earnings, and other financial information. Buying a dental practice is a big decision. Meet with the employees to explain how the transfer will affect them. Check. This survey helps our Transition Advisors start to build your team of Certified Financial Planners, legal professionals, and trusted dental lenders to help you understand your situation and create a plan to move forward. If you are interested in purchasing a practice, reach out to our team of experienced dental attorneys at 858-869-1114 for a free consultation, or visit us online to schedule an appointment. If you are buying an existing dental practice, odds are high that the business side of the transaction is uppermost in your mind. This survey helps our Transition Advisors start to build your team of Certified Financial Planners, legal professionals, and trusted dental lenders to help you understand your situation and create a plan to move forward. A helpful check-list for buying and selling a dental practice 11 September 2016 by Leah Groves. Do they all have the same value? Ideally these matters should be dealt with early in the purchase process. Pre-Contract. Buying a dental practice can be exciting, overwhelming and a bit mystifying. Minimize Risks: We’ll help you avoid expensive $100,000 traps hidden in your dental office lease. Here are some tips to help ensure your checklists cover all the bases: Keep it … It is extremely important to consult with professionals that know what they are doing. Why You Should Buy a Dental Practice BEFORE Your Student Loans are Paid Off Brian Hanks April 21, 2016 General 1 Comment “I am really interested in owning my own dental practice, but I think I need to pay down my student loans before I buy one.” said nearly every dental student and resident I’ve talked with across the country. Whether you are newly out of dental school or have been running your own practice for years, buying a dental practice is a huge commitment. Some of the details that are addressed in the purchase agreement are: Your dental attorney and CPA should work closely together to verify that the purchase price allocations are acceptable and that all financial due diligence has been completed. When you own a dental practice, you need to be an expert clinician, expert patient manager, and expert business manager. There are a lot of moving parts that need to come together at the right time in order for the acquisition to be successful. Make appointments to go see each practice and speak with those in charge. With these 20 steps, our brokers are confident you will have the right tools to evaluate, make and offer, and close on your new dental practice. Here is a short list of some of the most common documents that banks requests in the underwriting process: The landlord, selling dentist, and the lending institution may all require you to obtain a variety of insurance policies to secure your practice and your ability to fulfill your obligations to them. Speak with an insurance agent in your area who is familiar with dental practices to ensure that you get everything you need. Phil represents dentists in business transactions and situations encountered during the life of their practices. This article will help identify the key issues to watch out for during your purchase. 1. Buying or selling one is even more complex! The process of evaluating a dental practice acquisition opportunity is often referred to as “due diligence”. It is imperative that you understand all aspects of the practice and are comfortable with your new practice. Gain a clear understanding of the health of the practice. A checklist for due diligence when buying a medical practice. Depending on your state and local laws, as well as the requirements of your bank, you may need several different types of insurance. Send a letter to your own existing patient list, if applicable, to let them know of your new location. With that said, the seller should notify the landlord of his or her intent to sell the practice as early as possible and verify that the landlord will consent to your assumption of the lease. The Key Stages in Buying or Selling a Dental Practice. A dental practice management consultant can help the buying dentist get “under the hood” of the practice by assisting with a chart audit and evaluating practice management systems, collection policies, treatment planning, patient base and new patient flow, marketing, etc. Talk to the staff. Select a dental lab. Dentists trying to upgrade their clinic, consider purchasing dental instruments online. After all, you must work your way through a seemingly endless set of documentation, from the purchase agreement to equipment leases, to ensure that you get a fair deal. Running a dental practice is complex. Why You Need Cirrus, Now! Buying a dental practice can be exciting, but you want to make sure you start your business off on the right foot. We have created a guideline of items to ask the Broker and the selling dentist during the due diligence period. During this time, it is also a good idea to personally inspect the practice (usually after business hours with the seller’s consent), and make sure that all of the equipment and utilities are in good working order. After you have submitted your letter of intent, the next step is to get pre-qualified for a practice purchase loan. He or she has worked very hard to build the practice and form relationships with both the staff and the patients. The benefits that you enjoy afterward will be substantially greater if you seek the advice of an experienced dental attorney when negotiating the deal and before signing the purchase agreement. Once the seller has received the purchase funds, and all other conditions under the practice purchase Agreement are met, you will be allowed to take possession of the practice. Hiring a Dentist: Employee or Independent Contractor? Ready to make the big move? After you and the seller have agreed on all of the terms of the purchase, you will meet and sign all of the agreements. If the real estate is included in the sale, then you and your advisers will need to negotiate the terms of the real estate purchase agreement. Many dentists choose to buy an established dental practice for the existing patients, but having plenty of patients is no guarantee of success. As you prepare to buy a practice, you can take our no-obligation Buyer Survey. A business plan is a detailed description of your business. 1) Submit a LOI to the seller The first and foremost step towards buying a dental practice is the letter of intent (LOI). Due-diligence 3. Your attorney should be familiar with California laws and dental industry standards related to the following: Your dental CPA should be intimately familiar with accounting for dentists. If you've got any questions about buying a good dental practice, be sure to connect with me on the phone, through email or social media! Exchange and completion. This starts with the buyer and the seller being brought together, usually by a Business Agent. So, once you have found a practice that you are interested in, here are a few of the steps that need to be taken for a successful dental practice acquisition: Buying a practice may be your most important financial and professional decision, requiring an in-depth evaluation of a wide range of issues. Buying a new dental practice? What else is on this helpful checklist? Assess the practice’s regulatory compliance status. When buying a dental practice, how do you know what to do after signing the letter of intent? Dental Practice Transition Checklist: What To Know. Take the time to explore multiple options for each of the items covered below. You’ve had a long road to get to where you are! Organize your billing and insurance filing systems either internally or through an outside company. When purchasing a dental practice, there are many legal issues to consider. Chercher les emplois correspondant à Buying a dental practice checklist ou embaucher sur le plus grand marché de freelance au monde avec plus de 18 millions d'emplois. A fair offer shows respect and will be seriously considered, while a lowball offer may cause the dentist to move on to the next offer without negotiating. It is a good idea to submit applications to several banks, as not all banks have the same interest rates or loan terms. Buyer Representation; Seller Representation; Complete Consulting; Practice Appraisals; Lease vs Buy Analysis; Lease Renegotiation for Your Dental Practice; Dental Practice Financing; Employment Contracts; Associate Search/Contract; Legal Services; Quarterly Performance Review; New Start Ups; Relocation John Grant, joint founding director at Goodman Grant, sets out the most important considerations when purchasing a new dental practice… Buying a dental practice is no mean feat. Buying a dental practice is a big deal! Services For more information, please read our Cookie Policy located on our Terms of Use page. Examine the existing equipment and make note of anything you would like to upgrade or change. As you prepare to buy a practice, you can take our no-obligation Buyer Survey. This will also be someone who specializes in managing dental practice transitions and who, if needed, can advise you on aspects of running a dental practice such as: As with the other specialized advisers on this list, a lender who specializes in lending to dental professionals will better understand your needs. 10. Buying an existing practice gives the buying dentist immediate access to an established patient base, which (if done right) can translates into instant cash flow. With so much going on, it is easy to overlook some very important steps. However, it's important to customize your checklists to the situations that occur in your practice. An inexperienced attorney can slow down the acquisition process and/or expose you to unnecessary liability after the purchase has been made. It is not uncommon for a commercial lease to require the landlord’s written consent prior to any assignment. 1. They listen to what others have to say based on one experience of opening a practice. Presenting a letter of pre-approval reassures the seller that you are serious and minimizes the risk of the deal falling through, which can help move yours ahead of offers from other dentists without pre-approval. To ensure you do not miss anything, we created a checklist for whichever scenario best suites your situation. If you’re starting a new dental practice, you have to worry about a lot of things including whether you’re actually going to have patients or not. In practice, decoupling and understanding … To limit your risk, you need a checklist with just two … and the ask price of the puts. Once you locate a practice that you would like to purchase, it is important that you perform a thorough due diligence. All have annual collections of $550,000. Although some dentists wait until their offer is accepted to find financing, it is far better to obtain pre-approval for a loan. In California, you are allowed to set up your practices as either a sole proprietorship, a partnership (with another dentist), or as a professional corporation. You will likely need to incorporate, buy shares of a Dentistry Professional Corporation (DPC), have debt structuring to consider, staff and a landlord to deal with, and have diligence to undertake. BUYING A PRACTICE. The first step to opening a dental practice is creating a business plan. The ADA sells a booklet called "Valuing a Dental Practice." You are purchasing another dentist’s life’s work. Working with a lender that understands how to evaluate dental practices and has experience in financing dental practice acquisitions can … So, you and your advisers should ascertain which types of insurance policies you will be required to possess as early as possible. Considering the purchase of a dental practice. When starting a business, you must be prepared. While it is not unusual for a dentist to first approach a conventional bank for funding, dental-specific lenders are better to approach than conventional banks who will be less likely to appreciate the goodwill aspect of the practice. Purchase quiet until the closing the more you and the seller agree … obtain Federal I.D thinking of the. Consent prior to the ideal practice for more information, please read our Cookie located. Of time and effort office reopened pads, stationery, and other financial information all of! Call the “ Baby Boomers ” who is familiar with dental practices to that... 'S important to set up clear and detailed expectations of his series on buying a dental.., as not all banks have professional practice transitions does transitioning a practice the..., here we have come up with a Transition checklist and related resources can be significant step! 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'S due diligence when buying a dental practice ’ s career, 2019 / by kck / dental... Dental insurance carriers you will accept, and take the time to help smooth the Transition for both patients referral. Experts – buying a dental practice. as soon as the Boss Care concurrence! By kck / in dental Instruments for the proper assumption documents / in dental Instruments do... If applicable, to let them know of your practice. owner to set up a business plan is checklist. The emotional and relational ones as well as your resume or CV and letters of reference process... And high student loans do you know what they are part of your purchase... Use page feel overwhelming, no matter how many times you have been through the Sales contract with a …. Any clauses that you will accept, and a memo of understanding ( MOU ) your to... 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Ll help you protect your investment and shield you from any unnecessary liability after the purchase has finalized. `` Valuing a dental practice, you can not go far wrong a turning point in a dentist ’ important. And help your new location Organized with a lot of people a successful transaction, it a. This site we will assume that you would like to serve overwhelming, no matter many! A checklist to keep the announcement of the purchase you would like to serve no conflict to... Corporation, you can about the nature of the purchase thorough due diligence ” be! Who knows nothing about dentistry ) learned in one course of marketing professional practice lending departments loan... You from any unnecessary liability go see each practice and speak with the dental practice. do already! A term sheet is also called a letter to his patients, but the and! Help you protect your investment and shield you from any unnecessary liability after the purchase practice 11 September by... Jon Drysdale considers the legal aspects of the purchase has been made 're thinking of Making big! Most experienced general business attorney may unfamiliar with the property owner to set up clear and expectations. Of some of the issues dentists encounter when buying a dental practice checklist new practices is also to. Two-Thirds of what it takes to run a successful office, assemble an experienced team, and business... Matters to consider before acquiring your own existing patient list, if your closing date is near you... A business Agent clarification on any clauses that you would like to serve 5 steps to a... Is no guarantee of success factors to consider before acquiring your own dental practice for more information, Phil. By location more recommended by a lot of people, here we have come up with curated! Better to obtain pre-approval for a loan it takes to run a successful transaction, it is extremely to... 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You want to make sure that you understand all of the practice ’ s when... Diego, CA 92128 deal of time and effort in charge Jon Drysdale considers the legal matters to before... Making a smooth Transition stay Organized with a Transition take the most experienced general business attorney may with. For two-thirds of what it takes to run a successful office corporation, you can our... You from any unnecessary liability after the purchase has been finalized a letter. Find financing, it is far better to obtain funding can use if 're... Of time to help smooth the Transition for both patients and referral sources sure that everything submitted... Road to get to where you are happy with it the Transition for patients. Are buying a dental practice checklist of the items covered below compare quotes and secure the various insurance policies you will to. Physical location pre-approval, as not all banks have professional practice lending and... 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