Due Diligence – Buyer Beware!
Caveat Emptor is not a garnish at your local Italian restaurant. As you go through the steps in buying a practice, you should be cautious while going through due diligence. Due diligence is the thorough, in-depth analysis of the practice charts, equipment, systems, computers, and everything else in the practice. If you missed our buyers’ seminar last month, you would have received our very lengthy due diligence checklist. There is a lot to cover and a lot that can be uncovered in the process of due diligence, and there is a lengthy checklist involved, embezzlement, fraud, misstatements of numbers including active patient counts, faulty equipment over and under-treatment are just a few things that can be uncovered during the due diligence process. Do not take the word of the seller or broker, dig in and find the information yourself. Caveat Emptor is prudent advice when shopping for a practice.
-Rod Johnston, MBA. CMA