Seller checklist

Resources for selling a dental practice

LHPS – resources for dental professionals

1. Conduct staff meeting(s) to inform of transition

  • Discuss reason for transition
  • Inform staff of use of transition consultant
  • Discuss time line and expectations
  • Discuss need for "status quo" in practice operation
  • Emphasize need for team effort in achieving success for all
  • Emphasize need for confidentiality- (Other dentists and their staff!)
  • Express hope that all staff will stay- give purchaser a chance
  • Discuss needs of office to prepare for sale- Cleanup, painting, repairs
  • Discuss possible scripting to handle patient inquiries

2. Contact professional advisors

Attorney

  • Do initial planning on sale impact

Accountant

  • Understand tax implications of sale
  • Discuss timing of sale

Bank

  • Discuss debts to be paid from sales proceeds
  • Be aware of prepayment penalties or obstacles

Landlord

  • Discuss need to notify landlord and understand options available for transfer/assignment

Others

  • Financial planners
  • Consultant
  • Insurance agent

3. Seller and purchaser conferences

  • Discuss employee's salaries, benefits, bonus
  • Discuss sick day and vacation policies
  • Provide/obtain employees' salary histories and work records
  • Review fee schedule with purchaser
  • Discuss historical policies for warranty work
  • Discuss office/personal policies for pro bono or discounted work
  • Discuss office policy manual
  • Review new patient procedures
  • Review case presentation procedures
  • Review minimum of ten active patient charts for diagnosis compatibility
  • Discuss current suppliers and labs
  • Discuss specialists used
  • Discuss office staff meeting policies/ frequencies
  • Review list of patient charts to be kept (family, friends)
  • Review ongoing treatments of special need patients

4. Prior to closing

Prepare letters of introduction

  • Patient letter
  • Referral sources
  • Other professionals
  • Send out concurrently with closing- not before closing
  • Seller normally composes, and purchaser revises and approves

Vendor termination

  • Prepare vendor termination letter

Lien holders

  • Notify current lien holders of impending sale
  • Obtain payoff amounts in writing good until at least five days after closing

Insurance

  • Investigate need for personal health insurance carrier change

Lease assignment

  • Contact landlord to complete lease assignment to purchaser
  • Prepare office lease if seller is landlord

Software licenses

  • Arrange for transfer of software license(s)
    • Dental software
    • Business software
    • Imaging software and hardware

Vendor contracts

  • Determine if any vendor contracts cannot be canceled with 30 day notice and notify purchaser of the need to assume
    • Computer hardware and software
    • Postage meter
    • Copy machine
    • Security system
    • Utility providers
    • Web site
    • Telephone
    • Sharps service

X-ray documentation

  • Locate last x-ray inspection report (EPE) and x-ray installation report
  • Provide copies to purchaser

Credit card processing

  • Arrange for termination of credit card servicing account

Telephone transfer

  • Request transfer of service agreement form from telephone company

Accounts receivables

  • Run accounts receivables report for planning
  • Write off uncollectable accounts
  • Write off or refund credit balances older than 18 months
  • Make a list of patients with internal payment plans

5. Concurrent with closing

  • Run final accounts receivables and credit balance report
  • Back up all practice data to the date of closing and archive

Service provider notifications

  • Notify service providers of termination of accounts
    • Oxygen and nitrous tanks
    • Waste disposal
    • Long distance carrier
    • Dental supply companies
    • Office supplies
    • Laboratories
    • Direct vendors
    • Display advertising vendors
    • Utility providers

Government notifications

  • Notify state board of dental examiners of practice sale
  • Notify texas workforce commission of practice sale
  • Notify bureau of radiation and health for x-ray registration termination
  • Notify secretary of state regarding status of business
    • Change of location
    • Termination of business
  • Notify county taxing authority of business ownership change

Professional association notifications

  • Notify the following of address change and/or retirement
    • Local dental society
    • Texas dental association
    • American dental association
    • Other professional societies
    • Malpractice insurance carrier
    • Magazine subscriptions
    • Bank and credit card companies
    • Other suppliers
    • Professional journals

Utility and service transfers

  • Schedule transfer of utilities
    • Electric provider
    • Gas company
    • City services- water and waste
  • Complete telephone company phone transfer
    • Obtain transfer of service agreement
  • Coordinate transfer of practice health insurance plan