I’ve been asked to provide an overview of the services of a Buyer Representative. I can only speak for my services, so here goes:
*While it is best to engage my services prior to the offer to purchase, it is not essential IF the offer to purchase is non-binding.
Requests I typically make for Pre-Due-Diligence: Financial Documents (3 years of Business tax returns with depreciation schedules, profit, and loss reports, and balance sheets), Last year and the year to date Practice Management Reports to include Production, Collections, Adjustments, A/R, Insurance Mix, Fee Schedules, Active Patients, Patient Demographics, Employee Census, Employee Contracts (if applicable). Copy of Lease or Real estate appraisal (as appropriate).
I will provide resources for and work with Lenders, and Legal Counsel, review all information collected, run a cash flow report, communicate with the seller’s broker as necessary, and provide recommendations regarding the offer to purchase.
Following the acceptance of an offer to purchase, full Due Diligence begins. Requests are made for expanded Employee data, a list of Leased Equipment, the number of weeks/months dentist/hygienists are booked in advance, the last page of the current Recall Report with names redacted, the last page of the Outstanding Insurance Claims report, and the Delinquent Accounts report with names redacted, the most recent End of Month Practice Management report, a Year to Date Profit and Loss report and Balance Sheet, last page of the current A/R Report with names redacted. A New Patient report for the past three years (separated by year), a list of any major equipment items purchased since the most recent tax return was filed.
Additionally, I will provide resources as needed to professionals who provide the following services (and more) CPA, Insurance, Financial Advisor, Website, Payroll, Merchant Services, and Marketing.
It’s impossible to apply an hour count for time spent requesting, and reviewing the above documentation, as well as the phone calls, emails, texts, and messenger communications with Clients, Brokers, Lenders, Attorneys, CPAs, Insurance Brokers, and more.
Note* Most purchasers review between one and three practices. A portion or all of the processes listed above are repeated for each practice a client reviews.
As you can imagine an incredible amount of time, and energy goes into this job. I do it because I believe that dentists should not have to make the most important decisions of their careers with only bits and pieces of the information needed. When dentists understand what they’re buying, it makes the transition smooth for both sides and helps to get the new practice owner off on the right foot.