If you are a professional dentist then moving on to a transition is pretty normal as long as you are aware of the things necessary to undertake one. A number of legal procedures have to be followed which unless you are unaware of will not lead to a foolproof work. It is best to opt for professional and legal help at this stage so that the work process is streamlined and focused. The first thing to check out is the audit and diligence which should give you a fair idea of the condition of the business that you plan to undertake.
What to check
Professionals will know that is it important to check the financial statements starting with the most recent one. The papers on the historical tax returns should also be checked for any anomaly because thetransitionsshould not become burden on you in any way. Purchasing one that has a clear track record is the best method. You will need the entire list of all the equipment and inventory that is being purchased in the deal. It helps in keeping track of whatever you are paying. The next most important detail is the employee record which shows how much each is drawing and how long they have been working here.
Fetch the records
Access to the patient records gives an idea of the length, extent and success of the practice. It also helps in connecting to the same patients once the practice starts, and you can cash in on an existing base of clients. You just have to maintain cordial relations with them so that you can convert them into your clients. A list of the insurance plans with which the company has been associated is also necessary for the Dental transitions. If the plans are feasible, then they can be renewed or else discontinuedand new ones started.
Reason for selling
A document pertaining to the reason for selling a business is very important as it will help in taking future business decisions which can have an effect on the profits and the long sustenance of the company. For successful Dental transitions, you will need a letter from the previous owner introducing you and that all future dealings will take place with you. It will be sent to all existing patients to maintain clarity. The aging summary is also an important document. Other papers include the addendums and office lease and a list of the contracts pertaining to the practice. Last but not the least is the fee schedule.
Check the financial records
Involving skilled professionals in the entire process can make it much easier for you but nevertheless you should also possess the knowledge of the procedures involved. The audit session should be approached step by step so that nothing is missed out. The financial reports should be checked three months before the dental practice is reviewed. It should consist of the tax papers, the income statement and a couple of other papers. It is, however, best to get them checked by a professional who is a specialist in the acquisition of such businesses. It will help all the papers to be in order.
Examining the patient records
Dentists are usually unaware of the number of patients they are treating. So the records pertaining to that are very important, and it needs the skillful handling of a professional to make out the number of regular patients and the profitability. They will also be able to get damages from the seller in case the records are found to be manipulated. The appointment system needs to be checked to make out the number of new patients and the resultant profitability. It will also help in getting an idea of the condition of the company and whether the reason furnished for the closure is true.
Check the staff records
The staff listings help to gauge an idea of the seller as an employer. It is important to know if any of the employees is a relative or how long have they been working. You can also review the weaknesses and strengths of the employees and figure if they are good enough. Additionally you can remodel the structure and put the employees in places where you feel their potentials can be utilized best.