We have established in part I and II that you are well suited to own your own dental practice and we have established what your advisor will need and what they will do to help you make sure the practice that you are interested in buying is listed at the correct price and is a good practice to buy.
Now we will cover what you need to do. Your job is to evaluate the feel of the practice, the location, and the level of function or dysfunction of the team. You need to evaluate whether you think you will fit into the style of the practice. For example if the selling doctor has a very different treatment philosophy, then it may be very difficult for you and your treatment philosophy to fit in and connect with the team and the patients.
Another thing you need to evaluate will be the charts. You need to get in, get your hands dirty and review the charts. This chart audit should be of at least 15% of the charts. Make sure you are allowed enough time to go in and carefully review and analyze the charts. You should be allowed to do this without the selling doctor hovering over your shoulder. If you have a friend you can bring in, that knows how to read charts, and can help you, I would recommend you do so. You are looking for any work you think you might have to redo, you want to review the chart notes, look to see if you agree with the treatment plan, and make sure there is still some work for you to do. If you find that all the work on these patients has already been done, then you may be buying an empty box.
Your accountant/advisor can help you know if the price is right and they can help you spot potential issues or challenges, but you are the one that has to decide if it feels right and you have to look at the charts and decide if it makes sense. Don’t get caught up in the excitement of owning a practice, be critical and do not rush in if it doesn’t feel right.
Please contact us when you are ready to start evaluating dental practices to purchase.
Click the following links for Part I and Part II of Dental Accountant’s Due Diligence.