Practice Buyer Consulting
Know Before You Buy
Here in the San Francisco Bay Area, the impact of Delta Dental's policy changes to its Premier network have significantly impacted practice values and post-sale practice cashflow. Yet, we continue to meet buyers who didn't understand these changes and have significantly overpaid for the practices they purchased. After the first year or so, collections drop quickly and cashflow becomes a major problem. This is when dental practice owners become desperate for solutions; many find us at this point and ask for help. But we can help you avoid this problem. It could be the best money you'll ever spend.
Buyer Practice Consulting
We work with dentists one-on-one once they've identified a practice that they'd like to buy. Given that most good practices that are priced competitively result in a bidding war and sell very fast—and often over asking—it is imperative you have a dental CPA that can get up to speed quickly and provide you with competent advice. This is one of our core services and we are ready to help you on short notice. Benefits include:
- Independent dental CPA review of Seller's financial statements and income tax returns to uncover problems and identify opportunities.
- Evaluation of Seller's asking price versus actual practice value.
- Guidance on how much you should offer for the practice based on industry standards and recent practice sales in the Bay Area.
- Cashflow modeling to help you understand what you can expect to earn after the sale closes.
- Financial modeling to quantify financial impact of loss of Delta Premier contracts to PPO contracts.
- Recommendations and negotiations with Seller's team (CPA, attorney, broker) about purchase price allocation to realize maximize tax savings.
- Recommendations on whether to buy the assets or corporation stock from the Seller.
- Recommendations on whether to buy the Seller's accounts receivable (and what to pay for it if you do).
- Assistance with lender selection, evaluating loan packages, and loan qualification.
- Integral cooperation, assistance, and involvement with your attorney to ensure your Letter of Intent, Asset Purchase Agreement, employment contracts, associate agreements, leases, and other documents are drafting in your best interest from a tax standpoint.
- Communication with Seller's broker and other representatives on your behalf.
- Entity selection.
- Obtaining your new federal employer identification number (FEIN).
- S Corporation tax election.
- Multi-owner practice structuring (e.g. partnership of multiple S Corporations).
- Tax guidance about depreciation and amortization options
- Our service typically saves on legal fees since our hourly rates are significantly lower than attorneys' rates and our input reduces their time negotiating key contract provisions (purchase price allocation, consulting agreements with Sellers post-sale, etc.)
- Services billed by the hour at $275 and total costs are typically between $1,750 and $2,500 (depending upon how complex the deal is).
Are you ready to schedule your free consultation?