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Dental practice acquisition, due diligence checklist

 Buying a dental practice is not an easy task. It can often be a long and complicated process which can leave you wondering why you ever thought it was a good idea in the first place. 

As an acquirer, there are many important steps you must take to ensure that the investment you are making is a viable one…

Both in the short term and the long term! 

This checklist consists of some of the most important factors you need to be aware of during your dental practice acquisition due diligence. 

As you may already be aware, due diligence is all about finding out as much information about your new practice as possible. 

It is probably one of the most vital steps to undertake because it will help you highlight any issues early on and give you time to decide how you want to proceed.

There are two types to carry out…

Dental due diligence and property due diligence. 

With the latter, it is your responsibility to ensure that you are buying a structural sound property so be prepared to hire surveyors and carry out searches. 

Make sure that there is no restrictive covenants attached to the property so you can ensure you are permitted to practice in the building. 

Restrictive covenants may very well be a factor, so extensive due diligence is required in this area to investigate any prohibitions that may be in force, before you carry full steam ahead with the acquisition. 

If you cannot release any restrictions or make variations then it would be wise to walk away from the acquisition because if you go ahead and then break the covenant, you will most likely be liable for an injunction or fine. 

If the property is not currently a dental practice then you may have to apply for planning permission to practice there.

And regardless of whether it is a current running dental practice or not, permissions are always a good thing to check.

As above, Dental specific due diligence is also necessary as this determines the state of the business you are acquiring.

This covers everything from: 

The practice’s goodwill…

The number of employees and associates that are on the payroll…

The equipment inventory…

And the maintenance certificates to ensure everything is in good working order.

Ultimately the carrying out of extensive due diligence will tell you whether or not the investment you are making is worthwhile and sustainable for the future. 

But how do you know that you have covered all the basis? 

If you want to scale up profitably through Dental practice acquisition you need some serious fire power…

And for a limited time only, I am sharing with you these select dental due diligence tips so you don’t end up with a leaky investment that is haemorrhaging your hard earned cash! 

I also strongly recommend following the steps here before you start with your Dental practice acquisition. 

Best wishes, 

Kimberley Hagues

PS. If like you, you have friends or colleagues who want to turn their Dental careers to pure gold and maximise their profits through acquisition, then feel free to share this post with them and get them to click here,  content available for a limited time only! 

Dentists: Are You Ready For A Bargain? 

During negotiations on the sale of your dental practice, it is likely that you and the acquirer are going to come into conflict at some point during the process.

Whether these conflicts come from differing priorities in regards to:

Payment structures

Handovers

Operations

You will ultimately be able to fix any arising issues just by recognising the two different routes of negotiation and communication.

Leading you to make the right choice and ultimately…

End up with a higher price for your practice!  

The two ways you can enter into negotiations are through:

Distributive bargaining.

Integrative bargaining.

Click here to download our eBook to read all about these two negotiation approaches.

Because not being able to recognise these approaches is the fundamental reason that you will end up signing away your Dental practice…

For less than a premium offer!

So if you definitely don’t want to sign away your life’s work for anything less than a premium offer, then here are 3 ways I can help:

Download our FREE guide to The 9 Key Steps so you can stop unwittingly losing cash during negotiations on the sale of your Dental practice by clicking here.

Speak to one of our highly trained consultants who can answer any questions you have and give you a full no obligation valuation of your Dental practice by clicking here.

Do you want access to the most elite acquirers on the market right now? Reply back to this email with the word ‘Access’, and I will be in touch.

Best wishes,

Kimberley Hagues

PS. Click here to download our underrated tool that is essential to understanding the acquirers positioning and how you can use it to your advantage!

Dentists: Is it Your First Time? 

Buying a dental practice is definitely a game changer in your career. You can earn more whilst being your own boss. 

But it comes with a lot of responsibilities too. 

Here are 4 fundamental things you need to think about before starting the acquisition process: 

Location. 

Do you want to stay close to where you are? Or is there potential to earn more away from your current area? 

It is important to think about what your key demographic will be and whether your prime location supports that! 

If you aim your service towards children and their families and your current area isn’t seeing growth in new families. Or you already have several practices who are already well established in the family community, the likelihood is you are going to struggle fitting in. 

Numbers. 

Understanding important aspects of the practice is key to a successful acquisition. Factors such as: 

Patient numbers and behaviours. 

The financial records and cash flow of the practice. 

Statistics of the business

Preferred payment methods. 

Understanding these (and other factors), will help you determine if the practice is a financially viable concern. Lack of research and understanding of what you should be looking for is a fatal error.

Downloading our eBook here will save you from committing the 5 Fatal Errors made when buying a dental practice. Errors such as…

Not asking the question of why the dentist is selling up or taking what they say at face value without doing your due diligence. 

They will all leave you stripped of your budget with a practice that will not earn you what you thought at the start of the process! 

Practice potential. 

Is there any potential for growth? 

Undertaking research to find out about your competition in the area and factor in your costs of reaching out to potential new patients. 

The practice attributes. 

Does all the equipment you need come with the practice? 

If so, is it up to date and in good working order? 

It is imperative that you do an equipment inventory. If you don’t you will end up acquiring a practice that isn’t fit for purpose and you will have to put your hand back in your pocket to make it so. 

So if you are new to acquiring – or you have acquired before – but need steering in the right direction for that premium acquisition then here are 3 ways I can help: 

Download our eBook on the 5 Fatal Errors when buying a dental practice. Access to this and your very own due diligence checklist will reap dividends when it comes to acquiring. It costs you nothing but 5 minutes of your time so go ahead and get your FREE copy by clicking here. 

Book in for a free no obligation telephone appointment with us! We can answer your questions on acquiring and give you an update on what the market is doing right now. Just click here. 

Want a head start on acquiring with access to premium Dental practice sellers in the country? Reply back to this email with the word ‘Guild’ and I will get straight back to you! 

Best wishes, 

Kimberley Hagues

PS. Download our eBook here to get the tools to make sure your acquisition doesn’t fail immediately after completion!