Dental Practice Acquisition Tax Checklist
Coordinate financial review, tax structure, financing and closing accounting.
Start the acquisition pathway →Dental financial resource center
Dental Practice Guides for Every Ownership Stage
Choose where you are today. Each pathway puts the guides in decision order so you can understand the financial evidence, risks, tax consequences and next step.
Looking for ongoing support? JH Group CPA provides bookkeeping and part-time CFO services to dentists and dental practices. Explore dental practice accounting, tax and planning services.
Acquire
Buy the right practice on terms the cash flow can support.
Follow the sequence from initial evaluation through closing.
Valuation and Normalized Cash Flow
Determine whether transferable cash flow supports the purchase price.
Evaluate practice value →Due Diligence and Financial Red Flags
Reconcile the records and quantify exceptions before closing.
Review acquisition risks →Asset Purchase versus Stock Purchase
Compare basis, liabilities, contracts and tax reporting.
Compare deal structures →Financing, Working Capital and Debt Service
Test loan terms, liquidity, downside cases and buyer cash flow.
Model acquisition financing →Letter of Intent and Closing Conditions
Coordinate economics, diligence, consents and accounting deliverables.
Prepare the LOI and closing →Operate
Build reliable numbers, then improve the practice.
Begin with the accounting foundation and move into focused operating decisions.
Monthly Accounting and Fractional CFO
Build reconciled books, reporting, forecasts and accountable follow-through.
Build the financial foundation →California Dental Practice Financial Benchmark Guide
Separate national reference points, California labor context and the practice's own reconciled trend.
Use the financial benchmark guide →Dental Practice KPI Benchmarks
Define each metric before comparing performance.
Use the KPI guide →Accounts Receivable and Collections
Control claims, balances, aging, adjustments and deposits.
Improve collections →Provider Profitability and Break-Even
Measure contribution, clinical-hour economics and capacity.
Analyze provider economics →Hygiene Profitability and Capacity
Measure chair utilization, reappointment and downstream demand.
Review hygiene capacity →Payroll, Staffing and Associate Compensation
Define payroll controls and compensation formulas.
Review staffing and pay →PPO Payer Mix and Profitability
Compare realized fees, costs, chair time and contract terms.
Analyze PPO economics →Equipment ROI, Financing and Tax
Model utilization, contribution, financing and tax timing.
Evaluate equipment decisions →California Dental S Corporation Tax Planning
Coordinate compensation, distributions, PTE tax and retirement planning.
Review S corporation planning →Dental Owner Real Estate Tax Planning
Coordinate rental records, ownership, debt, depreciation, passive losses and transaction timing.
Plan practice-owner real estate taxes →Transition
Protect transferable value and compare after-tax outcomes.
Prepare early, define ownership changes and model the final economics.
Sale Readiness and Exit Timeline
Organize financials, systems, people, valuation and diligence records.
Prepare the practice for sale →Associate Buy-In, Partnership and Owner Buyout
Define valuation, compensation, governance, tax basis and exit terms.
Plan the ownership transition →Sale Tax and After-Tax Proceeds
Compare allocation, payment timing, real estate and offer risk.
Model after-tax sale proceeds →DSO vs. Individual Buyer Offers
Compare cash, rollover equity, earnouts, employment and risk-adjusted after-tax value.
Compare buyer offers →Seller Notes, Earnouts and Installment Payments
Compare enforceability, collection risk, tax timing and after-tax present value.
Evaluate deferred consideration →Employment, Compensation and Restrictive Covenants
Separate future-service pay from purchase price and test every termination outcome.
Review post-sale employment →Closing Accounting and Post-Closing Tax Reporting
Reconcile the settlement, allocation, opening books, returns and later adjustments.
Complete closing accounting →Sell, Retain and Lease, or Separate the Building
Compare liquidity, rent, tax, financing, reassessment and concentration risk.
Evaluate practice real estate →Sale Proceeds, Estimated Taxes and Retirement Cash Flow
Protect tax liquidity and convert collected proceeds into a year-by-year plan.
Plan post-sale cash flow →Choose an adviser
Need a dental CPA before choosing a pathway?
How to Choose a Dental CPA in California
Compare credentials, dental experience, communication and implementation support.
Use the dental CPA selection guide →Know which decision comes next.
The introductory call confirms fit, urgency and the right paid next step.
Request a Dental CPA Intro Call