TT Ep 4 – What to Ask for – Buyers Diligence

In Episode 4 of Transition Talk, we discussed when, and more importantly, HOW, to ask for the financials and operational data of the practice opportunity.  Once you have practiced your spiel and are ready to ask it’s important to know what to ask for.

Our initial request list, which we use to give you a high level thumbs up (or thumbs down), is the following list of documents:

  • Last two completed years of business tax returns for the practice;
  • Most recent year end profit and loss statement for the practice;
  • Current year to date profit loss statement for the practice;
  • Production Reports for last three years (by Provider if available);
  • Building or lease information (if available); and
  • Valuation of the practice (if available)

Of course, once you are ready to move forward with a practice there are many, many more questions and items to review and get comfortable with.  Our Buyers Checklist lays out 90+ diligence items to consider.  Click here to get that checklist now!

We know buying your first practice is a HUGE decision – both financially and personally  – so make sure you ask the right questions, review the right documents and have the right people on your team.  Have an opportunity and need some guidance?  Contact us today!