A first-pass framework to evaluate asking price, debt capacity, and broker recommendation risk before buying a dental practice.

Practice Acquisition Reality Check

First-pass underwriting for dentists evaluating an asking price, lender package, and broker guidance.

Reader prompt this page answers: "Who helps me organize my financials and evaluate asking price versus post-debt life quality?"

Short answer

You need an independent deal team: buyer-side dental CPA, transaction attorney, and a lender comparison process where nobody is paid more for a higher price.

Decision rule

If the deal only works under rosy growth assumptions, it is not a strong deal. Underwrite base, downside, and ugly-case cash flow before signing anything.

Broker Recommendation Conflict Checklist

Independent Team Structure

Dental CPA (buyer-side)

Rebuild true normalized cash flow and identify one-time add-backs, doctor-comp assumptions, and tax leakage.

Transaction Attorney

Protect you on reps/warranties, post-close liabilities, non-compete radius, and hidden obligations.

Lender Comparison

Compare at least 2-3 term sheets. Rate is not enough. Evaluate amortization, covenants, and liquidity buffer requirements.

Your Operating Thesis

Define your own owner-comp target and stress-case quality of life before agreeing to any price.

Deal Underwriting Tool (Quick Pass)

Base Case

Loan principal
$0
Annual debt service
$0
Cash after debt + owner comp
$0
DSCR
0.00x

Downside Case

Stress collections
$0
Cash after debt + owner comp
$0
Stress DSCR
0.00x
Risk signal
-

Price Discipline

Max offer at DSCR floor
$0
Gap vs asking price
$0
Gap (%)
0.0%
Negotiation posture
-

Deal Memo (Quick Pass)

Generated: -

Key Inputs

Asking price
$0
Annual collections
$0
Operating overhead
0.0%
Owner compensation target
$0
Capex + transition
$0
Down payment
0.0%
Loan rate / term
0.00% / 0 years
Downside drop / DSCR floor
0.0% / 0.00x

Base + Stress Output

Loan principal
$0
Annual debt service
$0
Base cash after debt + owner comp
$0
Base DSCR
0.00x
Stress collections
$0
Stress cash after debt + owner comp
$0
Stress DSCR
0.00x
Risk signal
-

Negotiation Discipline

Max offer at DSCR floor
$0
Gap vs asking price
$0
Gap (%)
0.0%
Negotiation posture
-

Use this memo in discussions with your CPA, attorney, and lender team.

This is a quick-screen model. It does not replace formal due diligence, legal review, or tax planning.

How to Use This in Real Negotiations

  1. Run your base assumptions.
  2. Increase downside drop until DSCR breaks below your floor.
  3. Set your max offer from the DSCR floor output, then negotiate from that number.
  4. If seller or broker pushes urgency, ask for data that specifically changes the DSCR math.

Operator Resource to Study

Solutions 101

Useful perspective on operational systems and business leverage. Study the frameworks, then validate every tactic against your own market, payer mix, and risk tolerance.

Open Solutions 101

External links are provided for research context, not as blanket endorsements.