Financial Due Diligence

Financial due diligence

What is financial due diligence?

Financial due diligence from a buyer's perspective allows them to achieve a higher level of insight into a proposed acquisition. It allows them to verify and investigate the deal opportunity in order to gain a level of comfort. It is essentially a buyer doing their homework and mitigating any risks.

When you buy a dental practice, what do you need to consider?

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• Analysis of historical revenue
• Quality of net assets
• Working capital requirements
• Forecasted financial results

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Why do I need financial due diligence?

Buyers often borrow to fund the acquisition of a dental practice and as such must meet strict lending criteria prior to the purchase and adhere to financial covenants with their lender post-acquisition. A thorough financial analysis and appraisal of the target business is therefore of paramount importance.

If you are considering acquiring a dental business, financial due diligence is a critical aspect of transaction planning and is a crucial aid to buyers in assessing the suitability of the practice they propose to acquire.

The team at Mayfield Practice Sales have a wealth of knowledge and experience in the production of Financial Due Diligence, having been involved in the process from both a buyers' and sellers' perspective and for all types of dental practices.

If you are a buyer looking to appraise a potential practice acquisition, call us to see how we can help you gain valuable insight prior to your investment.