Sell a Dental Practice: Prepare Collections, Clinicians and Patient Obligations

Reconcile fulfilled dentistry, hygiene and collections

Separate actual clinical and other offered activities by consistent period, clinician and location. Trace completed services through invoices/claims, contractual reductions, denials, refunds, settlements and receipts. Explain cash versus accrual timing; a treatment plan, scheduled appointment, billed charge and receipt are distinct. Have appropriate accounting/billing professionals investigate unreconciled differences and open claims.

Prepare receivable aging, subsequent receipts, disputes and recovery costs. Reconcile dentist/hygienist/support payroll, supervision, lab work, supplies, equipment, rent, software/billing and shared overhead. Include actual remake/refund costs and unfinished lab cases. Use the dental financial guide to distinguish hygiene contribution, supported annual earnings and historical sold comparisons.

Prepare patient evidence and continuing clinicians

Define the purpose, date window and qualifying completed-service event for each patient count; distinguish total historical charts, unique patients, repeat visits, scheduled activity and actual collections. Use permitted aggregate reports with documented parameters and explain changes without declaring an industry-standard active window or retention rate. See the patient-chart evidence guide. Patient choice and future attendance need separate consideration.

Map the owner’s dentistry, supervision, administration and patient/referral-contact work. Verify available appropriately licensed/credentialed dentists, hygienists and staff, actual capacity and recurring compensation/benefits through the coverage worksheet. Seller training and continuing employment need their own terms; they do not independently establish permanent staffing or every buyer’s billing.

Resolve protected records and actual offered rights

ADA outlines record custody/access options and consultation with counsel and the liability carrier.

Have dental/privacy counsel assess permitted diligence material, access, custody, retention, notices, migration and post-sale professional access for this proposal. Begin with approved aggregate evidence. An NDA alone is insufficient grounds to upload identifiable charts. Agree on controlled access, vendor rights and who funds record duties; do not assume one universal retention period or transfer procedure.

Inspect offered chairs, imaging, sterilization, laboratory and office equipment appropriately. Reconcile title, leases, liens, maintenance and required investment. Have responsible advisors/boards and payers assess the proposed entity, clinicians, services and locations. Use the consent register for premises use/rent/assignment and actual payer, lab and software conditions. A DSO label, device or existing contract does not establish every right.

Compare actual buyer terms and fund unfinished work

SBA sale guidance addresses agreement assets and liabilities.

Define included/excluded receivables, supplies, equipment, deposits, prepaid services, lab cases, refunds, remake questions and continuing patient duties through the delivery guide. Identify who performs, collects and funds each; avoid adding equipment or goodwill already included in price.

Compare individual, associate and DSO proposals using the actual cash at closing, adjustments, contingent amounts, retained equity, required clinical employment and control terms. Have counsel/accounting/valuation advisors assess ownership, compensation, referral, allocation and restrictive-covenant arrangements. A higher headline offer may carry different obligations; preparation does not guarantee a fixed premium, patient retention or closing date.