1. The reason the doctor is selling and the doctor’s future plans.

2. A complete copy of the personal and corporation tax returns for the last
three years.

3. End of the year profit and loss statements for the last 3 years, and a profit 
and loss statement for the current year up to the last completed quarter.  
The seller should make notes as to which items are personal (those items 
will be taken out when a cash flow projection is prepared) and what is 
covered in broad category listings (for example, if the category ‘insurance’ is 
used, whether this covers malpractice insurance, workers comp, health 
insurance, disability insurance, general liability insurance, etc.)

4. Production/collection numbers for each month of the current year.  Indicate 
in percentages how much of the practice’s income is made up of indemnity 
insurance, PPO insurance, HMO insurance, Denti-Cal, and cash.

5. A current accounts receivable aging report.

6. A copy of all fee schedules.

7. A list of HMO insurance plans accepted and a copy of the last 3 months 
worth of capitation checks.  

8. A list of the PPO plans accepted and Union plans and a copy of the fee 
schedule for each.

9. A list of the number of new patients for the last 6 months and the source of 
the new patients (internal referral, advertising, yellow pages, etc.).  A 
description and cost of the advertising.

10. A breakdown in production/collection amounts between the selling doctor, 
any associate(s) and/or hygienist(s).

11. A copy of the bank statements for the last 12 months.

12. A copy of the previous year's 1099's from Denti-cal and other major 
insurance companies.

13. A copy of the lease. The name, telephone number and fax number for the 
property manager or owner.  A list of all utilities paid and/or any other 
services used (janitorial, drinking water, etc.)

14. A list of the employees, their current pay rate, how many hours they work 
per week, the date of their last raise and their benefits.  A copy of the W-2 
statements and the quarterly DE-6 statements for the last year.  A statement 
as to what each employee’s future plans are likely to be, especially whether 
you think they will stay with the practice under the new owner.

15. The name of the computer software, the date the software was last updated, 
and the transfer fee for the software (seller usually pays this item).

16. A list of items that will be excluded from the sale.

17. A complete office inventory.