When looking at purchasing a practice, watch out for these red flag
issues.  You might want to ask a lot of questions before you proceed!

1.  A practice that is less than 10 years old.

2.  A practice with more than about 10% of its revenue from Denti-Cal.

3.  A practice where a practice sale broker insists that you use a particular
attorney or a particular accountant to evaluate the practice.

4.  A practice in which the seller is relocating close by.  A seller should
warrant in the contract what his/her future plans are.

5.  A practice in which the seller is not retiring.

6.  A practice with primarily new staff members.

7.  A practice in which more than 10% of the patient base lives more than
5 miles away from the practice.   

8.  A practice that has been on the market for an extended period of time.

9.  A practice in which the selling doctor will not give a covenant not to treat
patients, a covenant not to derive income from patients of the practice,
and a covenant not to hire employees of the practice.

10. A practice in which you must sign a sales agreement before doing your
due diligence.
Bette Robin                                                                                      714-421-4407
Dentist, Attorney, Real Estate Broker                                                                                                                                      
17482 Irvine Blvd., Ste. E
Tustin, CA  92780