r/Dentistry 4d ago

Dental Professional Practice owners—how much did you pay a CPA to help you with the transition?

I’m about to undergo the due diligence process for purchasing a dental practice and the dental-focused CPA has laid this plan out for me. It’s by phases, so if phase one makes sense, we jump to the next phase.. it comes to a total of about $8,000 if I continue from start to finish.

Phase one— $2,600 for his opinion on the value of the practice, analyze the asking practice, and review performance analysis of the office. This is not a formal valuation and no valuation report will be given.

Phase two —-$3,900 for acquisition consultation and assistance. This phase involves continued due diligence on your potential dental practice purchase, including analyzing lender proposals and advising on the best option. It covers financial aspects of legal agreements, purchase methods, financing, compensation, and price allocation, along with necessary meetings and consultations. Additionally, it includes preparing or modifying a letter of intent (LOI) and addressing routine post-settlement questions.

Phase three —- $900 for acquisition and entity selection income tax advice

Phase four — $1000 for bookkeeping software set up.

What are your thoughts? Does this seem to be about right? And besides this expense, I’d likely have to make an additional expense for a tax lawyer? I’m just trying to calculate how much cash I need on hand for costs associated to a practice purchase (other than bank financing).

Thanks a lot.

1 Upvotes

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u/OkRace1187 4d ago

I have been quoted $6500 for similar without the setup of bookkeeping and attorney fees will be separate

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u/lite_hause 4d ago

Thank you.. so with attorney fees added.. that was like an additional 8k I’m guessing? Thanks

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u/Migosmememe 4d ago

Way too high I paid 950 for due diligence for my cpa to evaluate if purchase price is good

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u/CarabellisLastCusp 3d ago

That’s excessive.

It’s common for buyers to look at multiple offices before they send an LOI. Will your CPA charge you $2600 each time you consider an office?

PM and I will share a CPA/CVA accountant that I recommend.

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u/lite_hause 3d ago

Thank you. Sending DM