Due Diligence Checklist for Selling Your Dental Practice
Buyers will conduct thorough due diligence before purchasing your practice. Being prepared with organized documentation prevents delays, maintains trust, and protects your sale price. This checklist covers everything buyers typically request.
Financial Documents
- Tax returns (last 3-5 years)
- Profit & Loss statements (monthly for 12 months)
- Balance sheets
- Bank statements
- Accounts receivable aging
- Production reports by provider
- Collection reports
- New patient reports
- Insurance breakdown
- Fee schedules
Patient Information
- Active patient count (seen in last 18 months)
- Patient demographics
- Recall report
- Treatment plan report
- Unscheduled treatment report
- Patient acquisition sources
Legal and Compliance
- Business licenses
- Dental license verification
- DEA registration
- Permits (nitrous, sedation, radiation)
- OSHA compliance records
- HIPAA compliance documentation
- Insurance policies
- Employee files
- Lease agreement
- Vendor contracts
Equipment and Assets
- Equipment inventory with ages
- Service records
- Warranty information
- Technology list
- Office furniture/fixtures
- Supply inventory
Staff Information
- Employee roster
- Compensation details
- Benefit plans
- Employment agreements
- Org chart
- Job descriptions
Preparation Tips
- Organize documents 6 months before listing
- Create digital file system
- Verify all information accuracy
- Address red flags proactively
- Prepare explanations for anomalies
Conclusion
Thorough preparation demonstrates professionalism and reduces buyer concerns. Organized due diligence materials can shorten the sale timeline and maintain your asking price.
Get Preparation Help
DentalBridge provides due diligence preparation services to ensure your documentation is buyer-ready.