Preparing the Asset for Sale
A practice that is highly profitable but poorly organized will fail due diligence. Seller readiness means the business is legally and financially transparent.
Checklist for Readiness
- Clean, accrual-based financial statements with clear owner add-backs.
- Active, transferable commercial lease with at least 5 years remaining.
- No pending board actions, lawsuits, or unresolved compliance citations.
- Staff contracts and associate non-competes clearly documented.
Frequently asked questions
What kills a dental practice sale during due diligence?
Deals typically fall apart due to messy financial records, undiscovered compliance liabilities, or landlords refusing to assign the commercial lease to the buyer.
How long does it take to prepare a practice for sale?
Owners should begin preparing 12 to 24 months in advance to clean up financials, resolve legal issues, and maximize their TTM EBITDA.