When a person finishes dental school, they usually have the option of working with an independent firm or choosing to start a clinic themselves. While the idea of being self-employed is appealing to many, it requires a significant upfront investment and the ability to carry the costs of the facility until a clientele is built. Another alternative is to purchase one of the many dental offices for sale in Arizona, which will fulfill a person’s entrepreneurial spirit while mitigating future risks.
Company Asset Listing
The assets that make up a business are one of the most critical items of value, and they are an integral component for buyers who are looking to secure financing when making a purchase. Ask for a complete list of the assets currently held by a corporation and make sure all of them convey with the practice. Having this beforehand will provide a buyer with a more accurate picture of what is included with a deal and help prevent financial devastation after the deal closes.
Monthly Financial Statements
Financial statements provide insight into the flow of cash within a corporation, and most are completed at the end of each month. In addition to showing revenue streams, statements will also detail information related to wages and the cost of operations. Most business brokers recommend reviewing a minimum of four years of statements, which allows a potential buyer to identify possible trends that are considered red flags.
Payroll Tax Payments
When a person buys dental offices for sale in Arizona, they are assuming the assets and liabilities of the corporation, including any payroll responsibilities. Failing to pay income taxes will result in significant fines and fees, leaving the new owner in the lurch. Ask for verification of past tax payments and make sure the current owner is fiscally responsible before submitting an offer.
If the idea of buying an established business seems lucrative and plausible, be sure to work with an experienced broker. The team at Western Practice Sales works with buyers and sellers and will help a licensed professional locate and purchase their dream practice. Click here to learn more and start browsing their listing of available clinics.
