Dental Practice Acquisition Due Diligence Checklist

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!