WHEN BUYING A DENTAL PRACTICE
When buying a dental practice, there are several essential reports you absolutely must have in order to evaluate the practice. The reports are as follows:
- Minimum of 3 years Tax Returns and Financial Statements
- Minimum of most recent 3 years annual productions, collections and adjustments
- Most recent production by procedure code report
- Fee Schedule
- Patient demographic information
- Accounts receivable and insurance receivable aging
- Employee census information
- Copy of the lease
- List of included equipment and furniture
- Outstanding treatment plan report
Now that you have these reports, it’s essential you understand what they mean. If you don’t know how to read financial statements or tax returns, be sure you have a knowledgeable OMNI accountant on your team. If you need help with the practice management reports, hire a consultant or third party practice broker, like myself and my OMNI colleagues. We can help you evaluate the practice.
In the long run hiring OMNI experts to evaluate the reports will more than pay off.
-Rod Johnston, MBA. CMA