The Essential Dental Practice Transition Checklist

A smooth dental practice transition comes down to three things: organized financials, a verified compliance checklist and a post-closing plan ready before day one.

Financial Documentation You’ll Need

Buyers, lenders and attorneys all request the same core set of records. Having these ready before due diligence begins keeps the process moving and avoids delays at closing.

	Document / Task	Detail
	Tax returns for the past three yearsLast 3 years — required for income verification.	Last 3 years — required for income verification.
	Current profit and loss statementsCurrent, prepared by your accountant.	Current, prepared by your accountant.
	Balance sheetsCurrent snapshot of assets and liabilities.	Current snapshot of assets and liabilities.
	Bank statements for all business accountsLast 12 months for all business accounts.	Last 12 months for all business accounts.
	Accounts receivable aging reportValue of outstanding patient payments.	Value of outstanding patient payments.
	Accounts payable summaryCurrent balances owed to vendors.	Current balances owed to vendors.
	Equipment appraisals and depreciation schedulesFull documentation of physical assets.	Full documentation of physical assets.
	Lease agreementsOffice space, equipment and contracted services.	Office space, equipment and contracted services.
	Malpractice insurance policiesCurrent coverage and claims history.	Current coverage and claims history.
	Employee payroll recordsW-2s, 1099s and contractor documentation.	W-2s, 1099s and contractor documentation.
	Loan documentationCurrent balances and payment histories.	Current balances and payment histories.

PTS reviews your financials before you go to market and helps you identify gaps before buyers do.

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Pre-Closing Dental Practice Transition Checklist

These tasks involve your lender, attorney, vendors and incoming owner. Starting early prevents bottlenecks from stacking up as closing day approaches.

	Document / Task	Detail
	Settlement statementFor receivables and prorated expenses.	For receivables and prorated expenses.
	Loan documentsSigned well before the closing date.	Signed well before the closing date.
	Insurance credentialingSettle early — Medicaid can take several weeks.	Settle early — Medicaid can take several weeks.
	Complete list of suppliers and vendorsSo the buyer can set up accounts immediately.	So the buyer can set up accounts immediately.
	Vendor accountsSet up before closing to avoid supply gaps.	Set up before closing to avoid supply gaps.
	Patient notification letterDrafted and ready to send before closing.	Drafted and ready to send before closing.
	Continuity of careCoordinate with incoming owner for all active patients.	Coordinate with incoming owner for all active patients.

Due Diligence Items to Verify

Due diligence is where deals slow down or fall apart. Every item below needs to be reviewed and confirmed before your dental practice transition moves forward.

Category	Item	Verify
Legal & Compliance	Legal & ComplianceInsurance contract transferabilityConfirm all agreements can transfer to the new owner.	Confirm all agreements can transfer to the new owner.
	Current licenses and certificationsDental license, DEA, state permits and specialty certs.	Dental license, DEA, state permits and specialty certs.
	Business permitsHealth dept, business license and zoning compliance.	Health dept, business license and zoning compliance.
	Staff employment agreementsConfirm key employees and review non-competes.	Confirm key employees and review non-competes.
Operations & Staff	Operations & StaffPatient records complianceHIPAA compliant, complete and ready for transfer.	HIPAA compliant, complete and ready for transfer.
	Personnel filesAll documentation current and legally compliant.	All documentation current and legally compliant.
	Vendor contracts and supplier agreementsTerms, transferability and ownership-change clauses.	Terms, transferability and ownership-change clauses.
Equipment & Technology	Equipment & TechnologyEquipment conditionService reports and warranty docs for major assets.	Service reports and warranty docs for major assets.
	Equipment lease agreementsTransfer procedures and remaining obligations.	Transfer procedures and remaining obligations.
	Practice management softwareMigration confirmed and team trained before closing.	Migration confirmed and team trained before closing.
	Digital and paper record systemsBackup and data migration confirmed.	Backup and data migration confirmed.
	Patient communication systemsTransfer requirements and backup confirmed.	Transfer requirements and backup confirmed.
Real Estate	Real EstateCommercial real estateLease terms and property valuations reviewed.	Lease terms and property valuations reviewed.

Post-Closing Practice Transition Checklist

These steps complete the handoff and protect both parties after closing. The order matters.

	Document / Task	Detail
	Settlement statementFinalized with all figures confirmed.	Finalized with all figures confirmed.
	Patient notification lettersSent to officially introduce the new owner.	Sent to officially introduce the new owner.
	Supplier and vendor accountsActive before the new owner opens for business.	Active before the new owner opens for business.
	Insurance companiesNotified and payer relationships updated.	Notified and payer relationships updated.
	All employeesNew-hire paperwork including I-9s and W-4s.	New-hire paperwork including I-9s and W-4s.
	Wire funds transferConfirmed and documented before releasing keys.	Confirmed and documented before releasing keys.
	Open house at the officeIntroduce the new owner to patients and staff.	Introduce the new owner to patients and staff.
	Line of credit or operating capitalSecured to cover day-one operating expenses.	Secured to cover day-one operating expenses.

Work With a Specialist for a Smoother Transition

Every item on this checklist involves a different professional: attorneys, lenders, accountants and brokers all working at the same time. Professional Transition Strategies coordinates the full process for both buyers and sellers at no upfront cost.

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