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DUE DILIGENCE & TRANSITION SERVICES

Know Exactly What You're Buying — or What Your Practice Is Worth

Buying or selling a dental practice is likely the largest financial transaction of your career. The purchase price is only part of the story. The real outcome is decided by what the financials show under the surface — production quality, collections, overhead, tax exposure, and how the deal itself is structured.

 

Levy CPAs works with dentists and practice owners through every stage of a transition: evaluating an opportunity, verifying the numbers, structuring the deal, and getting to closing with no surprises.

Business Analysis Focus

FINANCIAL DUE DILIGENCE FOR BUYERS

A seller's asking price is a starting point, not a conclusion. Our due diligence process verifies whether the practice's financial performance supports that price:

  • Quality of earnings review — analysis of revenue, collections, and profitability over the past three to five years

  • Production and collections analysis — procedure mix, payer mix, hygiene production, and adjustment/write-off patterns

  • Overhead benchmarking — staffing, lab, supplies, rent, and other costs compared against industry norms

  • Owner compensation and add-backs — identifying which reported expenses are personal, one-time, or won't continue under new ownership

  • Working capital and debt review — what you'll actually need on day one, beyond the purchase price

  • Tax exposure check—  entity structure, prior filings, and any liabilities that could follow the practice

You get a clear written summary of what we found, what it means for value, and where the risks are — before you sign.

SUPPORT FOR SELLERS

The best time to prepare a practice for sale is one to three years before you list it. We help sellers:

  • Clean up and organize financial records so a buyer's due diligence goes smoothly — and doesn't chip away at your price

  • Identify profit improvements that increase practice value before you go to market

  • Understand the tax impact of a sale under different deal structures (asset sale vs. stock sale, allocation of purchase price)

  • Coordinate with your broker, attorney, and lender so the transaction stays on track

PRACTICE VALUATIONS

Every sound transition starts with knowing what the practice is worth. Our valuation services support:

  • Buyers evaluating an asking price

  • Sellers setting a realistic listing price

  • Partner buy-ins and buy-outs

  • Estate, divorce, and retirement planning

Valuations are based on your practice's financial performance, operations, assets, and market conditions — not rules of thumb. See our Dental Practice Valuation Services page for details.

HOW A TRANSITION ENGAGEMENT WORKS

  1. Discovery call — we learn your goals, timeline, and where you are in the process

  2. Information gathering — financial statements, tax returns, production reports, and practice data

  3. Analysis — due diligence and/or valuation work, with questions flagged as they come up

  4. Findings review — we walk through the results together and what they mean for price and deal terms

  5. Through closing — we stay involved alongside your attorney, broker, and lender until the deal is done

Thinking About a Transition?

Whether you're buying your first practice, bringing on a partner, or planning your exit, the numbers should drive the decision — not guesswork.

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