01 / Understand
The financing decision
Can practice cash flow support the building and equipment after relocation or expansion?
A practice acquisition and a dental building purchase have different repayment and collateral questions. Start by separating patient collections, the owner’s clinical compensation, equipment obligations and property costs. A landlord leasing to an unrelated dentist analyzes lease income; a dentist buying the building also needs a sustainable practice cash-flow case. The questions and documents below are analytical preparation suggestions, not universal lender requirements.
Provider continuity before chair capacity
An additional operatory creates physical capacity, not verified patient demand. Reconcile collections by provider and service category, then identify the work the departing owner performed. Replace unsupported compensation add-backs with a documented staffing plan. Show whether hygienist availability, patient scheduling or treatment acceptance constrains the forecast rather than assuming every installed chair produces revenue.
Clinical systems have a cash and ownership trail
CDC identifies infection-prevention responsibilities in dental settings. EPA guidance separately addresses amalgam-related wastewater requirements for affected offices. Ask qualified providers and the applicable control authority which obligations apply. For financing, translate identified work into an equipment/building responsibility schedule with quotes, downtime and funding sources; do not treat this guide as a clinical compliance assessment.
Sources: CDC: Standard Precautions in Dental Settings · EPA: Dental Effluent Guidelines
Practice earnings are not additional rent
Keep the property entity’s lease and the practice accounts visible, then eliminate matching intercompany rent when viewing combined cash. The same patient receipts cannot support both an unadjusted practice cash-flow figure and a second rent stream. Allocate acquisition price among real estate, equipment and business value with appropriate professional support; a practice multiple is not a property appraisal.
A hypothetical decision
Hypothetical: four new rooms, one remaining provider
A buyer adds operatories while the seller plans to retire soon after closing.
The acquisition forecast keeps the seller’s historic collections and adds revenue from every new room. Rebuild it around signed provider arrangements and a supported patient transition, then schedule equipment payments before incremental collections arrive.
The takeaway: Financing capacity depends on the staffed, collecting practice and its cash obligations, not the number of chairs purchased.
Dedicated to dental practice properties
Download your niche underwriting package.
Use this dedicated Excel workbook with its lender guide and document checklist. Read the workbook instructions, replace illustrative assumptions with your evidence, and keep the guide beside your analysis.
Model scope and limitations
This model combines business and property cash, deducts listed business obligations, and tests the cash remaining for proposed property debt. It does not calculate standalone landlord NOI or establish lender-defined global coverage.
Net collectible billings are collected partly in the current month and the balance next month. Opening collectible receivables are collected in month 1. No additional receivable/working-capital deduction is made. Reconcile actual aging, denials and payment timing separately.
Doctor visits cannot exceed entered provider-hour capacity. Hygiene visits are separately supported throughput; do not count them as doctor visits. Fees exclude contractual adjustments; realization represents additional uncollectible amounts. Provider compensation is an actual cost, not an automatic seller add-back.
- All numerical values are illustrative; no market facts or lender approval are asserted.
- The twelve-month operating model omits taxes on investor returns and future refinancing costs except expressly entered items.
- Legal, licensing, environmental, engineering and lender-specific recognition require actual diligence.
Excel .xlsx · PDF .pdf · No email required. Preparation materials do not constitute a loan offer or a lender’s document requirements.
Package reviewed by Jason Taken ·
Next: gather your lender documents ↓Related core asset model
Compare the existing core workbook.
The scope below describes the related core asset workbook. The dedicated niche package above has its own instructions and limitations.
The Owner-occupied commercial property workbook can organize a supported consolidated cash-flow starting point.
Model scope and additional analysis
It does not forecast dental production, reimbursement, provider retention, practice value or clinical compliance.
Prepare an additional schedule: Add provider collections, staffing, equipment replacement and monthly transition cash schedules.
Test property-level loan sizing · Check post-closing liquidity
Questions to prepare for a lender
Use these questions to organize a financing discussion. A lender sets its own credit requirements and determines which evidence applies to your transaction.
What collections survive the seller’s departure?
Provide provider-level collections and adjustments, appointment capacity, compensation terms and a transition timetable. Avoid patient-identifying records; aggregate evidence should explain revenue continuity.
Which clinical or plumbing work must precede the projected revenue?
Connect qualified assessments, applicable authority correspondence and vendor quotes to the opening schedule and available cash.
References: CDC: Standard Precautions in Dental Settings · EPA: Dental Effluent Guidelines
Can the combined entities pay all external obligations?
Bridge practice cash to real estate costs, equipment debt, acquisition debt, taxes and necessary owner compensation without counting related-party rent twice.
03 / Prepare
Build your document checklist.
Check off what you have. Your selections stay on this page while it is open; they are not sent to Jaken Finance Group or analytics.
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Print uses your browser’s PDF option. Checklist selections are for your preparation, not a lender’s completeness determination.
Continue the learning path.
Medical office debt: temporary liquidity or a durable payment reset?
Compare a medical office dependency shock against reserve funding, debt-service capacity and the equity needed for a durable loan adjustment.
Owner-occupied debt: when no intercompany rent satisfies both entities
Test the operating company’s sustainable rent against the property’s standalone debt requirement before relying on strong global coverage.
Specialized equipment and real property value separation
Identify collateral value dependent on equipment or an operating business. Includes component collateral valuation evidence schedule.
Sources and applicability
The references support the specific points identified above. Preparation questions, checklists and hypothetical decisions are the publication’s analysis, not instructions issued by the source or a lender.
- CDC: Standard Precautions in Dental SettingsBackground; Standard Precautions · Checked 2026-10-21
Supports infection-prevention practices as an operating consideration. The capital budget, collection reconciliation and lending questions are our analytical suggestions, not CDC financing guidance.
- EPA: Dental Effluent GuidelinesReporting Requirements; Who is my Control Authority? · Checked 2026-10-21
Supports checking applicability of dental wastewater requirements with the control authority. It does not establish a particular practice’s compliance, costs or lender eligibility.
AI-assisted research and preparation. Published by Jaken Finance Group. Reviewed by Jason Taken on 2026-10-21. Report a correction.