The Overlooked Basics
The Overlooked Basics
A summary of what every dental practice owner should know and implement in the day to day operations of their practice.
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Completing Due Diligence Before Burying a Dental Practice

Completing Due Diligence Before Burying a Dental Practice

3/28/2019 9:00:00 AM   |   Comments: 3   |   Views: 71
                                        
When considering the purchase of a dental practice, the dentist must perform the required due diligence. The dentist, his/her accountant and lawyer should educate themselves doing due diligence before ever signing a letter of intent. The potential buyer should always ask for the following reports:
                                        
• A detailed description of the office including whether or not the current seller owns the underlying building
            • A statement that describes whether the practice owner owns or leases the equipment that is being sold
            • A description of any contractual relationships of the patients, employees, or insurance companies
            • Profit and loss statements, balance sheets, and income tax returns (for the last 3 years)
            • A breakdown of practice expenses (Practice Profit and Loss)
            • Percentage of collections
            • A production and collections report broken down by each dentist and hygienist
            • An accounts receivable and aging report
            • The total number of active patients and the number of new patients per month
            • A list of referring dentists if the practice is a specialty practice
            • A report on how much revenue is based on insurance reimbursements 

OBERMAN LAW FIRM 

Stuart J. Oberman, Esq handles a wide range of legal issues for the dental profession including cyber security breaches, employment law, practice sales, OSHA, and HIPAA compliance, real estate transactions, lease agreements, noncompete agreements, dental board complaints, and professional corporations.
 
For questions or comments 
regarding this article 
please call (770) 554-1400
or visit 
www.obermanlaw.com
 
 Email Emily Scarborough at emily@obermanlaw.com to hear Stuart J. Oberman, Esq speak at your next event.

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