Buying a practice? Here’s Why Skipping Due Diligence is a Costly Mistake

Hi everyone,   

Buying a dental practice is one of the biggest financial moves you’ll make in your career. But too often, buyers focus on the price tag and overlook the financial risks lurking beneath the surface.  

A practice may look profitable on paper, but hidden liabilities, overestimated revenue, or underreported costs can turn a seemingly great deal into a costly mistake. 

The reality?

The question is, do you know exactly what you’re buying? 

The Reality Behind the Numbers 

A set of accounts can tell you a lot—but not everything.  

Profit and loss statements and balance sheets are just the starting point. Without a deep financial review, you might be missing key red flags that could impact cash flow, profitability, or even the ability to run the practice successfully. 

We’ve seen buyers fall into traps where reported earnings looked strong, but patient retention was on a downward slide. Others have walked into deals where NHS contract values were overestimated, leading to a shortfall in expected revenue.  

Uncovering the Red Flags 

Not all practices operate as they appear. While financial statements provide a snapshot, they don’t always reveal the full picture.

Staff costs, lease obligations, tax liabilities, and supplier agreements can all significantly impact the financial viability of your acquisition. 

We’ve helped buyers uncover issues like: 

• Unreported tax liabilities, leading to unexpected HMRC bills post-sale.

• Overinflated goodwill values, making a practice seem more profitable than it truly is.  

• Hidden cost structures, such as pending refurbishments or outdated equipment requiring immediate replacement. 

• Overly optimistic revenue projections, which can mislead buyers into assuming steady profits that may not exist. 

Without proper due diligence, you could be walking into a deal that drains cash flow and creates unnecessary financial stress. 

The Price of Overlooking the Details 

I’ve seen buyers who assumed a practice’s performance would remain steady, only to experience declining revenues due to poor patient retention or an ineffective handover process.

Others have struggled with unexpected costs, such as staff wage increases or compliance updates that weren’t factored into their purchase decision. 

The last thing you want is to realise six months down the line that you overpaid or, worse, that the practice isn't financially viable. A thorough financial due diligence process ensures you're not just hoping for success but actually setting yourself up for it. 

How Samera Ensures a Safer Deal 

Having bought, sold, and worked with hundreds of practices, we know exactly what to look for. Our Financial Due Diligence service provides a clear, risk-assessed breakdown of a practice’s financial health—before you sign anything. 

Whether you’re looking at your first acquisition or expanding your portfolio, our due diligence process ensures you invest with confidence, not uncertainty. 

If you’re considering a practice purchase, don’t leave it to chance. Book a call with us now:

Cheers, 

Arun