Practice Impact serves members of the dental profession with practice valuations, practice sales/transitions, associate buy-ins, and consulting.

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Practice Impact

The Importance of Sending Updated Information

Every January, Practice Impact starts making our yearly calls to request updated information from our current selling doctors.  Although we make these calls throughout the year at various times, especially just after tax day to get updated tax returns for all of our practices, the year-end information we request is usually the most substantial.  If we have your yearly tax returns and you have already filled out our practice questionnaire you may wonder why we are asking about much of this information again.  The simple answer is that PI needs to stay informed in order to better represent your practice.  Below we have listed some of the typical information we request throughout each year, but especially at the beginning along with the reasons we need this information.

  • Year-end financial statements, i.e., Profit and Loss or Income/Expense Statements: This information allows us to see how you did in the previous year-were your collections and expenses on pace with previous years?  With that information, we can update our marketing for your practice as well as the listing price and your average net if it has changed
  • Year-end Production by Procedure/Code or Category report: did you start referring out a lot of procedures you used to do or did you add some procedures to your practice?  These added procedures may attract doctors who enjoy doing them and referred out procedures attract buyers because it’s a way they can quickly grow the practice if they are willing to perform the work you currently refer out.  Did one category (i.e. cosmetic procedures) have a significant change?  This can tell a lot about your patient base, their financial situation and trends in elective procedures they may request in the future.
  • Collection Summary/Analysis: are you percentage of services paid by cash/ insurance/ PPO/ Medicaid consistent with previous years?  If not, then why?  Did you change the number of PPO’s you accept?  Did you start marketing to a new sector?  Any potential buyer will want to know what plans you participate with and what recent changes you have made concerning them.
  • Updated Fee Schedule: if you increased your fees we will need an  updated copy to include with your practice information booklet and also to see how they compare to similar practices since this is another factor buyers consider.
  • Updated Employee Information: did you increase wages or change benefits?  Hire any new employees or did any leave the practice?  Is your hygienist working more hours and how did this affect your production and collection for the year?  These wages and figures affect the practice’s profitability and stability.  Buyers like to see a staff that has been with the practice for a significant time so they are well trained, dependable and know the patients, but they do not want to see a staff that is overpaid, unhappy or ready to leave the practice when the current doctor leaves.
  • New equipment: did you make any upgrades or new equipment purchases?  A complete equipment list is part of the info book and will also be an exhibit to the purchase agreement so PI will need to know of any changes.  Some new equipment and technology will also be something extra to attract a potential new buyer as most buyers prefer practices that don’t need too much updating.
  • Lease: if you signed a new building lease we will want a copy not only for the cost aspect of your practice but so we can relay some of the basic terms to prospective buyers.
  • Tax Returns: whenever your fiscal year ends and your taxes are due, we will need a copy.  Since this is the information that you file, it is the most requested piece of information by buyers and their accountants.  A buyer will not move forward without current tax returns.


Although these are not all of the reports and information we may request, it is an overview of the most common.  All of this information includes various facts and figures that are included in our marketing for your practice and can also help PI answer questions about your practice for buyers.  By sending this information on a timely basis after PI requests it, or even as soon as it’s available before we request it, we can update the marketing on your practice and be proactive about talking to potential buyers about changes.  We never want there to be a time lag of a buyer showing interest in your practice until they receive the critical information.  That delay allows their interest to cool and give them time to look for other practices or change their mind about a practice.