Gross average: 1.5 million
Net: a little over 800k
Patient active 12 months: 1800
NP/month: approximately 12
Building owned and for sale separately
8 chair practice
95% C&B, Implant and removable
FFS+ Delta premier only
Hygiene only generates 280k/year. I believe 8 hygiene days. Very little soft tissue management.
Dentist takes a month off a year.
Sale price: 1.05 million
I’ll start the list of questions:
1. How many docs? If one, can you produce $1.2mill/yr?
2. 8 hygiene days equates to approx. 1,500 patients going through hygiene recall with a good recall system and approximately 6 weeks off. How was the 1,800 arrived at, any idea? Hygiene gross of $280k is about right for 1,500 patients.
3. Average doc prod should be about $900k, here its $1.2million. Any procedures being done that you won’tcan’t do?
4. Selling doc staying on board? Leaving ASAP?
5. How’s the equipment? Facilities? Any major investments that need to be done?
6. Location good for future growth or at least maintaining of existing patient base?
7. Must real estate be sold with practice? If not, what’s the lease arrangement? First right of refusal an option?
1. If net is accurate, looks fantastic
2.If net is accurate, price seems good
3. How much due diligence have you done so far?
Go to either http://www.dentalcpas.com/ or http://www.newdocs.com/ and grab the checklist for a practice purchase. From a financial perspective it provides a good bit of the initial documents you’ll wantneed to see and once you’ve analyzed that info it usually generates more questions. newdocs.com also has other checklists for this type of project you’ll find helpful.
So specifically, there’s nothing more I can add w/o seeing a lot more specifics…..