Jun 23, 2019
In this interview, Dr. Drew Byrnes sits down with Dr. Sonny
Spera to talk about practice transition and acquisition. Sonny has
years of experience buying FFS practices and making them
successful. He shares:
- Income and expenses- how profitable is the business?
- 3-4 years tax returns incl YTD
- 3-4 years P & L incl YTD
- 3-4 years balance sheets incl YTD
- Lease agreements, software agreements, loans (equip etc)
- Does the dentist own the building? If so is it for sale? Could
- What’s the rent?
- What’s included?
- Is it expandable? Can you increase the size if needed? Any
restrictions in the lease?
- What’s the term? Read the lease agreement-who’s paying the
taxes and if so which ones? Are there any grandfathered in things?
Such as tax abatement which won’t transfer to new owner or won’t be
applicable because it’s based on age of owner?
- Be great to have layout of practice (floor plan)
- Production collection by provider
- Production collection breakdown by category
- Types of procedures not being done almost as important as
what’s being done
Employee list with salaries and benefits- written and
- Job titles and job descriptions
- Pay rates
- Perks- free dental? Day care? Travel? Extended family?
- Insurance? Days off? Sick days? Retirement plans?
- We can debate the specifics however it’s good to have something
- Equipment list and approx value (again highly debatable)
- Practice wants/ needs and any future purchase agreements or
If you have good enough information you can predict some cash
flow based on what’s being done, who’s doing it and what’s it gonna
take to continue? Increase? Minus purchase financing costs and
purchases needed and what the incoming Dr needs to
Do you have a FFS practice? Would you like to be interviewed?
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