Buying a Dental Practice: Red Flags Checklist

I've purchased 17 dental practices. Some were home runs from day one. Others were a struggle from the moment I signed the papers, filled with surprises I wish I'd seen coming. This is the pre-flight checklist I wish I'd had before those deals: the five traps that show up most often, and the specific action to take against each one.

It's a short list on purpose. Print it and run it against a listing before you get emotionally invested in the deal.

What's inside#

• Red Flag 1: Poor cash flow and an overvalued price tag
• Red Flag 2: Disorganized or dysfunctional team dynamics
• Red Flag 3: High facility costs
• Red Flag 4: Hidden liabilities and vague contracts
• Red Flag 5: Poor financial policies

How to use it#

1. Read through all five flags before you tour a practice, not after you've fallen for it.
2. Check off each action item as you confirm it during your own review of the listing.
3. Take anything you can't check off to your attorney, your CPA, or back to the seller for an answer before you write an offer.