PART 2 - Due Diligence

Confirm that what you are buying matches what was represented -

Due diligence is where a dental practice acquisition is won or lost. It is your opportunity to verify the seller's representations and uncover problems before they become yours. Build a document request list and track responses against it.

Financial and operational

• Three years of financial statements, tax returns, and production/collection reports.

• Accounts receivable aging and historical write-offs.

• Patient counts, new-patient flow, recall rates, and payer mix (PPO, HMO, fee-for-service, Denti-Cal).

• Fee schedules and any in-network insurance contracts that may or may not transfer.

Legal and regulatory

• Status of all professional licenses, DEA registration, and any past or pending Dental Board actions.

• HIPAA compliance posture, including the practice's policies, risk assessment, and business associate agreements.

• Pending or threatened litigation, malpractice history, and audit exposure.

• Existing employment and independent contractor arrangements, including any associate dentists.

How West Coast Health Law Can Help!

We help buyers build and work through a diligence checklist, flag the findings that should change the deal terms, and translate red flags into protections in the purchase agreement.

West Coast Health Law offers a FREE consultation which you may schedule by clicking the button on our website.