Buying a Practice

Buying a practice may be a dentist’s most important financial and professional decision. To make the most informed business decision, you must evaluate a wide range of issues including, but not limited to:

• Patient profiles
• Quality of treatment records
• Employment and contractual agreements
• Financial assets and liabilities
• Clinical standards
• Legal compliance

Approaching the purchase with a considerable amount of diligence and the advice of an experienced practice transition attorney can assist with your success. 

In developing this resource, TDIC researched and talked to experts in the field of dentistry, law and insurance claims. However, the ideas and suggestions contained in this resource represent the experience and opinions of TDIC. There are no guarantees that any particular idea or suggestion will work in every situation. The ideas and suggestions contained in this resource are not legal opinions and should not be relied upon as a substitute for legal advice. For legal advice specific to your practice, you must consult an attorney. 

This resource addresses risk management considerations of buying a practice. Areas of importance when considering purchasing a practice include:

• Financial due diligence — reviewing the billing records, financial records, insurance status of patients and tax returns of the practice. 
• Legal due diligence — reviewing the lease and existing contractual relationships and negotiating the sales agreement. 
• Practice management due diligence — reviewing treatment records and patient demographics. 
• Clinical procedure distribution, fee schedules, recall procedures and growth potential.