What the checklist covers
Buying a practice is usually the biggest financial decision of a dentist's or physician's career, and most of the risk sits in the details. The checklist works through four areas:
- Price and deal terms: valuation, normalized earnings, holdbacks, the seller's handover and non-compete, and whether you buy assets or shares.
- Lease, financing and closing: lease assignment and renewal, personal guarantees, financing conditions, staff, equipment and a cash reserve.
- What to insure: disability, overhead expense, life, critical illness, professional liability and property coverage, ideally in place before you sign.
- Walk-away flags: the signs that a deal needs to be repriced, restructured or left alone.
How your punch list works
Tick each item you've confirmed in writing, and any red flag that applies to your deal. You'll see right away whether you're close to ready, not ready, or should hold off. Enter your name and email to get the full punch list: every open item and red flag, each with a plain-language note on what to do about it.
Why insurance belongs in the deal
A practice loan doesn't pause if you get sick or hurt. Lenders usually ask for life insurance, and disability and overhead coverage decide whether the practice survives a few months off. Coverage depends on your health when you apply, so arranging it before closing is easier than after.
Common questions
Who is this checklist for?
Dentists and physicians in Canada who are buying a practice, buying into one, or seriously considering an offer. It's also useful for associates thinking about ownership in the next few years.
Should I buy the assets or the shares of a practice?
It depends on the deal. Sellers often prefer selling shares because of the lifetime capital gains exemption, while buyers often prefer buying assets for depreciation and fewer inherited liabilities. Decide it early with your accountant and lawyer, because it affects the price.
What is a holdback or earn-out?
Part of the price is paid later, depending on how the practice performs after closing, often based on revenue or active patients over the first 12 to 24 months. It shares the risk if patients leave after the seller does.
When should I arrange insurance for a practice purchase?
Before you sign. Coverage depends on your health at the time you apply, and lenders often require life insurance as a condition of financing.
Does this replace a lawyer or accountant?
No. It helps you ask the right questions. Every purchase should be reviewed by a lawyer and an accountant who work for you, not for the seller or the broker.