1. How to Avoid Financial Pitfalls of Purchasing a Practice by Charlene White www.charlenewhite.com

2. Warning Signs

3. A Nice Person

4. Lack of Business Training

5. Personal and Friend Experiences

6. Beware of the Selling Doctor

7. Advice from Your Professional Team

8. Don’t be Afraid to Fire Staff Members

9. Grammatical Errors are Red flags

10. It’s a Fallacy

11. Location, Location, Location

12. Evaluate 3 Year Trends

14. Rehire Employees

15. Non-compete Clause for Retiring Doctor

16. Study the Overhead and Calculate Your Numbers
November 2008 Income $42,865 Retiring Doctor Salary $10,000 Rent $5,500 Payroll $18,000 BAC $8,595 Student Loan Payment $1,600 Former Doctors Supply Bills $5,000 Lab Bills $4,500 Major Expenses $53, % Overhead for November 2008

17. Renegotiate Your Lease
Start-up
Office

18. Research State Labor Laws

19. Do Your Own Bookkeeping

20. When to Say “You’re Fired”

21. Do Not Pay in Full

22. It’s No Fun to be in the Red

23. Study the Demographics

24. Questions to Ask Prior to Purchasing a Practice

25. The number of exams, records, and starts for the past three years.

26. A list of active patients with start and projected deband dates.

27. A list of retention patients with their deband dates.

28. A list of observation recall patients with last appointment date.

29. A list of active patients who are still in braces and paid out.

30. A copy of the patient contract and financial policies.

31. Current aging report and total contract amount due.

32. A profit and loss statement from the last three years.

33. A list of staff member’s names, salaries and benefit packages.

34. A list of referring doctors names and the number of patients referred by each doctor for the past three years.

35. Just Remember

36. If you don’t know what to do, don’t do anything.

37. Look carefully at multiple options.

38. Why ask for advice if you don’t follow it.

39. If your spouse has reservations, don’t do it.

40. Make the transition 3-6 months.

41. 65% Rule

42. Old facility and new doctor don’t mix.

43. Do a clinical assessment.

44. Visit us at www.charlenewhite.com