1. Three years of collections
One great year is a story. Three years is a trend.
2. Adjusted EBITDA, receipts included
A useful health check, and your bank will want it. But it's calculated differently from firm to firm. Ask for every add-back and the paper behind it.
3. Debt coverage
Can the practice pay the bank and still pay you?
Adjusted EBITDA ÷ annual loan payments. Above 1.0 means the practice covers the loan. The further above, the better you'll sleep. Your lender sets the minimum.
4. Hygiene production
Hygiene is the engine. It's steady revenue, and it fills your restorative chair. Check its share of production and how far out it's booked.
5. Active patients, defined
"2,000 active patients" means nothing until you know what "active" means. Seen in the last 18 months? The last five years? Ask.
6. New patients per month
Is the practice growing, or coasting on its reputation?
7. Lease term
Great practice, two years left, no renewal option? That's not a practice. That's a countdown. Your bank will notice too.
Most buyers end up negotiating with the seller's advisor. We sit on your side and check all seven before you sign.
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