Buyer toolkit

Can this practice pay the loan and you?

Put in the seller's numbers and the loan you are looking at. A plain Yes, Tight or No in ten seconds, and the questions to ask before you go further.

Please read. Educational software, not tax, accounting, legal, lending or investment advice. Your CPA reviews and owns your books and signs your returns. This does not value a practice or promise any lending outcome.

The sample is Maple Street Dental, an invented practice. Or drop your own seller's P&L or bank file below.

Drop your files. No typing.

The seller's profit and loss or bank file · CSV or PDF · or type the numbers below

Read on this computer. Nothing is uploaded, and patient names are never needed.

Enter the seller's collections and costs below, drop their files, or press Try it with sample numbers.

The seller's numbers, a year

Drop the seller's files above, or type the numbers.

Collections for the year$Operating costs for the year$Team, lab, supplies, rent, marketing and the rest. Not loans, interest, depreciation or the seller's own pay.Seller's own pay inside those costs$If the seller's W-2 runs through payroll, add it back here. You replace it with your own pay below.

Your loan and your pay

Loan amount$A starting value. Type the loan you are looking at.Interest rate%TermyearsWhat you want to take home each year$A starting value. Type your own.

Questions to ask before you go further

Four for each side. Their answers can change the result above.

The seller's broker

Are these numbers from filed tax returns, or from a profit and loss the seller prepared? Which years?
How much of the seller's own pay is inside these costs, and what else was added back?
What exactly is included in the sale: equipment, supplies, records, the lease?
How long will the seller stay, and how are patients introduced to the new doctor?

Your lender

What coverage do you require, and do you count my own pay before or after it?
Fixed or variable, what rate and term, and what fees at closing?
What down payment, working-capital reserve and collateral do you need?
What documents do you need from me and from the seller, and how long from application to closing?

A lender decides whether to lend, how much and on what terms. Practice CEO does not value a practice, name a price, recommend a purchase or promise any lending outcome. Bring these numbers and questions to your lender, your attorney and your CPA.

More in the Toolbox

Cash forecast Books and close Transition readiness Tax organizer Payroll audit Owner money Hygienist or chair ROI All tools