Practice Acquisition Financial Review

What this delivers

A written financial picture you can actually rely on

The review produces a written report covering everything a dentist needs to evaluate a practice purchase with financial clarity — historical revenue and expense analysis, patient base review, equipment valuation context, and forward projections under new ownership. Delivered in a format suitable for sharing with lenders, advisors, and anyone else involved in the transaction.

The goal isn't to make the decision for you — it's to make sure the financial picture you're working from is complete and accurate, so the decision you make is based on what the practice actually is, not just what it's being presented as.

Historical review

Revenue and expense history examined to understand true practice performance — not just reported figures.

Patient base analysis

Active patient count, retention trends, and demographic profile reviewed for sustainability.

Equipment context

Equipment inventory and condition reviewed in the context of the asking price and projected capital needs.

Forward projections

Financial performance projected under new ownership, suitable for lender and advisor review.

The challenge

What the seller's numbers don't always show

Practice acquisitions typically involve a set of financial documents provided by the seller or their broker — tax returns, profit and loss statements, a patient count, and an equipment list. These documents are a starting point, not a complete picture. They show what the seller chose to present, organized in a way that serves the transaction.

What they often don't show clearly: how the revenue actually breaks down by procedure and payer, how stable the patient base is and what the retention trends look like, what the true owner-adjusted expense structure is, how much of the production depends on the seller personally, and what capital expenditures are likely in the first few years under new ownership. Those details matter — both for the purchase decision and for the financing.

An independent financial review doesn't assume the seller's numbers are wrong. It simply examines them from a different angle — looking at what the practice has actually produced, what it costs to run, and what a realistic financial projection looks like for a new owner with no prior relationship to the seller's patient base.

What tends to be unclear in seller-provided financials

Owner compensation adjustments that don't reflect what a new owner would actually take home

Patient retention trends that don't surface in a single-year revenue figure

Production concentration — how much of the revenue depends on the selling dentist's patient relationships

Deferred capital expenditures — equipment that's functional now but will need replacement within the financing period

Payer mix composition — whether the insurance contracts are assumable and at what reimbursement rates

True operating expenses once one-time or seller-specific items are removed from the reported figures

Our approach

An independent review built around the buyer's perspective

The review examines the practice's financial history and current state from the standpoint of someone considering ownership — not someone trying to maximize the sale price. That difference in perspective shapes what gets examined and how it's presented.

01

Historical revenue and expense analysis

The practice's financial history is examined across multiple years — not just the most recent period. Revenue trends, expense patterns, and owner-adjusted figures are reviewed to produce a picture of what the practice has actually generated and what it genuinely costs to operate. One-time items are identified and treated appropriately so the normalized figures reflect ongoing performance.

02

Patient base and practice sustainability

Active patient count, new patient flow, recall rates, and demographic composition are reviewed for what they suggest about the practice's sustainability under new ownership. A practice with strong production but declining active patient count tells a different story than one with steady patient retention — and that distinction matters for both the purchase decision and the financing structure.

03

Forward projections and transition considerations

Financial performance is projected under new ownership, accounting for transition-related factors — patient retention risk, payer contract continuity, staffing continuity, and any near-term capital needs identified in the equipment review. The projections are built to reflect a realistic range of outcomes, not a single best-case scenario that serves the seller's asking price.

Working together

What the engagement looks like

Practice acquisition timelines can move quickly, and the financial review needs to fit within that pace. The engagement is structured to be efficient — we gather what we need, work through the analysis, and deliver the report in a timeframe that works with your transaction timeline.

The report is written to be readable by someone who isn't an accountant — not just by your lender or advisor. The findings are presented clearly, with the context that makes each element of the analysis useful rather than just factual.

If questions come up while you're reviewing the report — or if your lender or attorney has specific questions about the methodology — we're available to clarify. The deliverable isn't just the document; it's confidence in what you're looking at.

01

Initial conversation and document request

We discuss the practice being evaluated and what's been provided so far. We then outline the specific financial documents and data we need from the seller to complete the review.

02

Document review and analysis

We review the provided financials, identify any gaps or items requiring clarification, and work through the historical analysis, patient base review, and equipment assessment.

03

Projections and report preparation

Forward projections are built from the historical analysis, accounting for transition-related factors. The full report is prepared in a format suitable for sharing with lenders and advisors.

04

Report delivery and follow-up

The completed report is delivered. We're available to walk through the findings with you, answer questions from your lender or attorney, and clarify any aspect of the analysis.

Investment

One-time engagement, fixed fee

Practice Acquisition Financial Review

$2,000

One-time fee — no recurring charges

Historical revenue and expense review across multiple years
Owner compensation normalization and adjusted expense analysis
Patient base analysis — active count, retention trends, demographic profile
Equipment inventory review and capital expenditure assessment
Forward financial projections under new ownership
Written report formatted for lender and advisor sharing
Follow-up availability for questions from you, your lender, or your attorney

The $2,000 fee covers the complete engagement — from initial document review through report delivery and follow-up. There are no additional charges for revisions if the seller provides updated documents, or for answering questions from your lender or advisors after delivery.

How the fee relates to the transaction

A practice acquisition typically involves a purchase price in the hundreds of thousands of dollars — often significantly more. The financial review is a modest expense relative to the transaction size, and one that addresses a specific risk: making a major financial commitment based on incomplete or unexamined financial information.

Most dental practice lenders expect the buyer to have done some form of independent financial analysis before approving acquisition financing. A written review from Thornveil meets that expectation and gives your lender a clear document to work from.

Timing and transaction pace

Practice acquisitions can move quickly, and the financial review needs to fit that pace. Once we have the required documents from the seller, the typical turnaround for the completed report is one to two weeks. If your timeline is tighter, reach out to discuss what's feasible for your specific situation.

Framework

What the review examines and why each part matters

Each component of the review addresses a specific question a buyer needs answered — and that lenders typically want documented before approving acquisition financing.

Revenue history

Why multi-year history matters more than recent figures

A single year of strong revenue may reflect a genuine trend — or it may reflect one-time factors, a particularly productive associate who has since left, or an insurance contract that changed shortly after the review period. Multi-year analysis surfaces the difference between durable performance and circumstantial results.

Patient base

What patient base analysis reveals about transition risk

Practices where a large share of production comes from patients with long-term relationships to the selling dentist carry a different transition risk profile than practices with broad, steady new patient flow. The patient base review surfaces that distinction — which affects how projections are built and what retention assumptions are reasonable.

Equipment and capital

Why equipment condition affects the real cost of acquisition

Equipment that's functional but aging represents a deferred capital expense — one that may not appear on the seller's books but will affect the buyer's cash flow within the first few years of ownership. Identifying those near-term capital needs as part of the review allows them to be factored into the purchase price negotiation and the financing structure.

Projections

How forward projections are built — and what they don't claim to predict

The projections in the review are built from the historical analysis and account for known transition factors. They reflect a reasonable range of outcomes based on the available data — not a guaranteed figure. Lenders understand this, and a well-constructed projection with documented assumptions is more useful to them than a single optimistic number without support.

3+

Years of history reviewed

Multi-year analysis distinguishes durable performance from single-year results

4

Core analysis areas

Revenue history, patient base, equipment, and forward projections — each examined independently

1

Written deliverable

A complete report formatted for sharing with lenders, attorneys, and advisors

Our commitment

How we approach this engagement

Independent perspective

The review is conducted from the buyer's standpoint — not the seller's. The analysis reflects what the numbers show, not what makes the transaction more attractive.

Lender-ready report

The written report is formatted and documented to meet the expectations of dental practice lenders and advisors — not just useful for your review, but usable in the financing process.

Follow-up included

Questions after delivery — whether from you, your lender, or your attorney — are part of the engagement. There's no additional charge for clarifying the analysis.

The first conversation is just a conversation

If you're in the early stages of evaluating a practice and want to understand what a financial review would cover — or whether it makes sense at your stage of due diligence — reach out and we'll talk through it. You don't need to have made any decisions to start that conversation, and there's no pressure attached to it.

Next steps

How to get started

The engagement moves at the pace your transaction requires. Here's what the process looks like from first contact to completed report.

1

Reach out with the basics

Use the contact form to share what you know about the practice being evaluated — size, location, what stage of due diligence you're in, and what financial documents you currently have access to.

2

Initial conversation

We discuss the transaction, review what you have, and outline exactly which documents we'll need from the seller to complete the analysis. We'll also confirm the timeline and delivery schedule.

3

Document collection and analysis

We gather the required documents, conduct the historical review, patient base analysis, and equipment assessment, and build the forward projections. If anything needs clarification mid-review, we'll reach out directly.

4

Report delivery

The completed written report is delivered in a format you can share with your lender, attorney, and advisors. We're available for follow-up as the transaction progresses.

Common questions before starting

What documents do I need to provide?

The core documents are typically three years of practice tax returns or profit and loss statements, a patient count report, an equipment list, and any existing fee schedule or payer contract information. We'll provide a specific document request list after the initial conversation.

How long does the review take?

Once we have all required documents, the typical turnaround is one to two weeks. If your transaction timeline is tighter, reach out to discuss what's feasible.

What if the seller provides additional documents after we start?

If updated or additional documents arrive during the review, we incorporate them. There's no additional charge for revisions based on seller-provided information received during the engagement.

Can the report be used for SBA or bank financing?

The report is written to be suitable for sharing with dental practice lenders, including those offering SBA and conventional acquisition financing. We're also available to answer questions from your lender directly if that would be helpful.

What if I decide not to proceed with the acquisition?

The review is an analysis of a specific practice opportunity — not a commitment to proceed. If the financial picture changes your view of the transaction, that's the review doing its job. The fee applies regardless of outcome, as the work is done either way.

Get started

Evaluating a practice purchase? Let's look at the numbers together.

Tell us about the practice you're considering and where you are in the due diligence process. We'll follow up with a clear outline of what the review would cover and how the engagement would work.

Start the conversation

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After you've completed an acquisition, ongoing accounting keeps the practice's finances clearly visible month to month.

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Monthly reporting on provider production, collection rates, supply costs, and compensation — structured around how dental revenue actually flows. Useful from day one of a newly acquired practice.

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Insurance Reimbursement Reconciliation

Detailed matching of submitted claims against payments received — underpayments identified, denials tracked, aging balances surfaced. Particularly valuable in a newly acquired practice where payer relationships are still stabilizing.

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