Accounting
Buying or Selling a Dental Practice
Dental Practice Acquisition Specialists
Expert Accounting Support for Buying or Selling Dental Practices
Buying a Dental Practice is a complicated process that requires expert financial and legal guidance. At Redwood Accounting Group, beyond managing the day-to-day financial needs of our Dental Clients, our Chartered Certified Accountants provide full due diligence, assessing both the current and future financial viability of the practice you are acquiring.
We carry out a comprehensive financial analysis of the business being sold and collaborate with financial partners to deliver a professional valuation tailored to your acquisition.
It is essential to engage with qualified accounting and legal professionals to ensure a smooth transition of ownership from one Dentist to another.
We also work closely with Business Brokers who can assist in finding the right dental practice to purchase—or support you in selling your existing practice.
Selling your Practice (For sellers)
Plan early: Start planning 3–5 years before you intend to sell your practice. Seek guidance from Redwood Accounting Group or a Business Broker. Having solid financial results for at least three consecutive years is crucial to a successful sale.
Professional valuation: Obtain an accurate business valuation from an experienced valuer. If you don’t have one, we can connect you with a trusted expert.
Confidentiality: Keep your intention to sell confidential to maintain staff retention. A stable and engaged team at handover increases the appeal of your practice to potential buyers.
Transition: Working with the new owner for around six months post-handover can be highly beneficial. Ensure you are prepared to assist or remain available during this period.
Financing options: Seller financing can be an attractive option for buyers, particularly when structured with buyout clauses. Contact us for more information on how this can be effectively implemented.
Buying a Practice (For buyers)
Buy a practice that fits your goals: When evaluating a practice, ensure it is profitable, has strong cash flow, and uses modern software and equipment aligned with your operational standards and long-term objectives.
Location and demographics:
Conduct thorough research on the local market and competition. Assess accessibility for patients and understand the demographic profile of the area—identify the type of patients living locally.Current patient base:
Review the existing patient list to determine whether growth potential exists and anticipate any possible attrition that may occur following the ownership transition.Transition from the seller:
Ensure the seller is prepared to remain involved for at least six months post-handover. This supports patient retention, maintains team stability, and builds confidence among both staff and patients.
Professional Support for Buying or Selling a Dental Practice
Accounting Professionals: As experienced Dental Accountants, we can guide you through buying or selling a dental practice. Our team is highly familiar with the financial and operational considerations involved from an accounting perspective.
SBA Loan Officers & Seller Financing: We can advise on seller financing structures and connect you with credible, experienced SBA Loan Officers from reputable banks should you require a business loan.
Business Attorney: We recommend engaging a business attorney to help you review and understand all sales contracts, including non-disclosure agreements (NDAs) and property lease agreements.
Business Valuers & Brokers: If you are looking to buy or sell a practice, we can refer you to experienced Business Valuers and Brokers who will guide you through the entire acquisition or sale process.
Contact us now for a consultation if you are considering selling or buying a Dental practice.