Dental Practice Buyer & Transition Representation

Purchasing and buying into a dental practice offer many opportunities for success, but unfortunately, the business side sometimes takes a back seat to the emotional side. Our team of Dental CPAs is equipped with a proven process that eliminates the surprises many dentists encounter when they try to buy a dental practice on their own, or hire counsel that has little or no experience in these types of transactions.

We will review the target practice financial information to help you assess the reasonableness of the asking price. We also dig into the performance of the practice to let the buyer know what we see in the practice performance, seeking to identify issues like, excess labor costs, low dentistry production, hygiene production & wage benchmarks & unusual procedures, etc. As we assess the asking price, we’ll use industry standard valuation methods and formulas to determine whether the asking price falls within a reasonable range. With our decades of experience servicing the needs of dental practice owners and providing them with practice performance feedback, we’re able to provide the same practice performance feedback to prospective buyers. Whether it’s a General practice or a specialty practice like Ortho, Perio, Pedo, Endo or Oral Surgery we understand the financial aspects of these practices and the performance related issues that are just as important to the prospective buyers, sometimes even more important than the asking price.
This includes the continued due diligence review and assessment regarding your potential purchase of the dental practice. We will help you analyze various lender proposals and advise you on the best option in our opinion. We may review the financial aspects of various legal agreements, proposed purchase methods and structures, financing arrangements, compensation arrangements, allocation of purchase price, and other matters that are typically addressed upon the purchase of a practice. This may include meetings, discussions, consultations, and analysis as you may require to complete the transaction and achieve your desired results within the time frame mentioned above. This phase will allow you to prepare or modify a letter of intent (LOI) for an offer on the practice. During this phase, we also drill down into the details of the transaction to ensure you, the buyer, is protected and the transaction occurs in a manner which meets your desired needs and goals. We even provide post-closing consulting for up to 30 days for any routine questions the new owner has under this phase.

We will advise you on how the transaction will impact your income tax return in the year of purchase, discuss the type of entity to purchase the practice and other matters to achieve income tax positioning to your advantage.
We will educate the prospective buyer on the various entities they should consider and how these entities may be impacted by both federal and state laws. For example, while many dental practices end up becoming S-corps at some point, rarely do they begin that way, and in some states, being an S-corp can cost you MORE income tax than other types of entities. By working with our team of experts, you are supported by a team that knows the various state regulations and can provide the best recommendation in entity selection from the beginning.

We also want to make sure the prospective buyer understands how the transaction could impact their income taxes in the year of purchase, so there are no surprises.

Much too often we acquire clients AFTER they’ve purchased a practice only to find out A. they may have selected the wrong entity from the beginning and B. they had no idea how the transaction would affect their income tax return.

Our team of Dental CPAs will assist you in setting up your computerized accounting data file using software such as Quickbooks, concurrent with the commencement of business operations and help you select a payroll service provider. We use a dental specific chart of accounts and make the initial accounting journal entries to “book” the initial transaction showing the assets purchased and the debt used to purchase those assets. We will also provide up to an hour of training to the prospective buyer and a team member if they desire to get them acclimated with the bookkeeping software so they can be up & running very quickly after the closing.

We want to prepare income tax projections for the year your start-up will open its doors for several reasons. We do NOT like surprises, we want you to be prepared for the impact this endeavor will have on your income tax returns for that year. This service will also allow us to advise you on various income tax strategies that we may deploy for the optimal income tax positioning, not only in your first year, for future years as well. We consider the timing of when deductions should be taken, how certain expenses should be categorized, such as capital and operating expenses, portions of the tax code that will benefit you like Code Sec 179 and 197 and so forth. Planning WHEN to take your deductions is imperative.

Lastly, We will be available to assist you with routine business matters on which you need assistance and seek our advice regarding your acquisition. We are here to help you through the process no matter the questions you have.

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