Due Diligence for Evaluating Dental Practices
Don't rely on the seller's P&L. We uncover the truth by diving deep into the Practice Management Software (PMS) to verify the true financial performance. We expose the risks—from insurance fee drop-offs to staffing bloat—so you know exactly what you are buying.
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Data-Driven Confidence
Buying a practice is an investment in data. We are experts in mining that data from all major PMS platforms (Dentrix, Open Dental, Eaglesoft & others). We uncover the “grandfathered” fee schedules, credentialing delays, and cultural risks that rarely show up on a tax return but can destroy your ROI.
- Forensic PMS Revenue Verification
- Insurance Fee Schedule Analysis
- Ongoing quarterly reviews and forecasting
- Delta Dental Premier & MediCal "Drop" Impact
- Provider Credentialing Roadmap
- Staff Retention & Culture Assessment
- Centralization & Economy of Scale Plan
The Due Diligence Playbook
Verify Everything. Assume Nothing.
The Data Detective
Tax returns can be manipulated; the PMS tells the truth. We audit the production reports, adjustment codes, and accounts receivable aging directly in the software. We find the "inflated" revenue and "hidden" write-offs to reveal the practice's true cash-flow potential.
The Insurance Trap
Revenue often drops the day you buy. We analyze the seller's "Grandfathered" status (like Delta Premier) & reliance on MediCal fees that are subject to change by the Legislature. We forecast the exact revenue loss you will face when you reset to new, lower fee schedules, ensuring your purchase price reflects this new reality.
The People Strategy
You are buying a team, not just a building. We identify the key personnel you must retain and spot opportunities to merge your existing team for "Economies of Scale". We build the plan to centralize administrative tasks like hygiene recall, call center and Revenue Cycle Management (RCM), creating immediate efficiency post-close.
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The Desktop Audit
We start fast. We review the seller's tax returns and reports to spot immediate red flags. We verify EBITDA, normalize owner expenses, and give you a "Go/No-Go" recommendation before you spend money on legal fees.
2
The Deep Dive (PMS & Insurance)
We go deep. We access their software to audit patient retention and case acceptance. We simultaneously run an insurance analysis to calculate the "Credentialing Lag" and fee schedule impact, adjusting your cash flow forecast accordingly.
3
The Transition Plan
We prepare for Day One. We deliver a report outlining exactly how to integrate the staff, which systems to centralize immediately, and how to communicate the change to patients to minimize attrition.
Why Smart Buyers Choose Us
- We know where to look in all major PMS programs (Dentrix, Eaglesoft,, Open Dental & others).
- We calculate the real impact of losing Delta Premier status and how reductions in MediCal reimbursements could impact future profitability
- We spot "inflated" production that won't collect.
- We help you merge teams to create instant efficiency.
- We prevent you from overpaying for a "declining" asset.
Dental Practice Transactions & Valuations Services
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Frequently Asked Questions
Can’t I just trust the seller’s tax returns?
No. Tax returns show what the seller wanted to pay taxes on, not necessarily how the practice performs. They often hide aggressive write-offs or don’t reflect the “cash” reality. We validate the revenue directly against the patient software
What happens if I drop Delta Premier status?
You will likely see an immediate revenue drop of 20-30% on those specific patients. We calculate this “cliff” before you buy, so you can negotiate a lower purchase price to account for the lost revenue.
Do you physically audit the patient charts?
We focus on the digital audit. We analyze the Practice Management Software to look for “ghost charts” (inactive patients marked active) and treatment planning trends. If a physical clinical chart audit is needed, we can refer you to clinical specialists while we handle the financial forensics.
What if the collection rate is low?
A collection rate below 98% is a red flag, but also an opportunity. It means the seller was bad at billing. If you buy the practice and implement better RCM (Revenue Cycle Management) systems, you can instantly increase revenue without seeing a single extra patient.