Supporting you to find the right practice
Due Diligence
Creating a Forecast for Financing Your Purchase of a Practice
We provide insight into the potential acquisition to determine if the practice value meets/exceeds the criteria of your personal income and the requirements of the practice cash flow. We conduct a thorough analysis of the practice to determine areas of opportunities and weaknesses. We forecast the financial outcome best / worst-case scenarios, providing you with full disclosure of your practice purchase. We also work with you, lenders, and lawyers to have a seamless closing.
Analytics to Make a Confident Purchase
Purchasing a practice is not an easy decision and picking the right practice is important to ease financial hardships later. We provide support throughout the process.
Our Seamless Process
Step 01
We determine your personal and professional financial goals for owning a practice. Then we review practice appraisals with you, we also match your needs with the appraisal offering. During the review of the appraisal, we provide pros and cons associated with the practice as well as an affordability check if the practice selling price meets your budget or not.
Step 02
Once an offer is accepted, we start working on Financial Due Diligence and Chart Audit. Our in-depth review examines financial statements, bank statements, patient management reports, patient ledgers, and key metrics. We validate whether the financial earnings of the seller are accurate to further substantiate the selling price. During our review, we raise pros and cons to the buyer for considerations that will need to consider during transition. We collaborate with the buyer to create a forecast to incorporate the current state of the practice, the goals of the buyer, and constraints of the patient base. This forecast with commentary is provided to your bank to assist in approval of financing.
Step 03
We are available to discuss and support: Lease Agreements, Transfer of Contracts, Sale Agreement Review, and Associate Agreement Review. We are a part of each email thread and provide our advice and experience, even before it’s asked for.
Step 04
Transition Planning and Take over: We want to ensure the practice experiences minimal changes during a sale. We lead the set up with payroll, vendor accounts, bank account, and debit terminal. After transition, we review the forecast that we created previously and discuss how the forecast can be implemented.
Reach Your Financial Goals Today
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ADC CPA are experts in the process of purchasing a dental practice. We pride ourselves in becoming a reliable accounting partner to successfully achieve the milestone of owning a practice.