New Practice Buyer Due Diligence Checklist
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New Practice Buyer Due Diligence Checklist
Buying a practice? The seller's broker won't tell you these 42 things. Free DD checklist.
The seller's broker has done this before. You may not have. That information asymmetry is priced into every transaction — in the seller's favor. This checklist levels it.
42 inspection points across 7 categories. Sourced from ADA Health Policy Institute 2024, Dental Economics benchmarking data, and ADCPA guidance on practice valuation and due diligence.
What's Inside (5 Pages)
- → 42-point checklist across 7 categories — financials (10 items), patients (7), staff (6), equipment (6), lease (4), reputation (5), and compliance (4). Each marked CLEAR / FLAG / DEAL CONCERN.
- → 5 red flag patterns that most commonly kill acquisitions mid-process — and why most are actually negotiable if identified before the letter of intent.
- → Valuation sanity check table — typical multiples by practice type. Solo GP with stable collections: 60–75% of annual collections. Growing with strong systems: 75–90%. Specialty practices: up to 120%.
- → Attorney + CPA decision matrix — exactly when to call each one during the due diligence process, not after you've signed.
What the checklist covers that most buyers miss: Net collections rate below 95% transfers with the practice. Lease term under 7 years may prevent SBA financing. Production concentrated in the selling doctor is revenue at risk. These aren't surprises after close — they're negotiating points before LOI if you know to look.
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Benchmarks sourced from ADA Health Policy Institute 2024 Dentist Income and Expense Survey (collections rate, supply cost, staff cost, hygiene production ratios), Dental Economics published benchmarking data (new patient volume, hygienist productivity), and ADCPA guidance (normalized EBITDA methodology, net collections benchmarks, valuation multiples by practice type).
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Related resources: M&A Timing Calendar · Associate Hiring Playbook · Staff Wage Benchmark Card