Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting.

📄 Key Review Areas

• Has owner compensation been normalized?
• Is the buyer assuming full production or hiring an associate?
• Are hygiene and support staff roles documented?
• Are recurring insurance reimbursements normalized?
• Is revenue concentration tied to the dentist or to the practice brand?

🏷️ Goodwill Transferability Test

• Is there a transition agreement in place?
• Is the patient base loyal to the provider or the clinic?
• Are new patients referred through brand, web, or reputation?
• Will the buyer be credentialed with insurance carriers in time?

👨‍💼 Compensation + Coverage Notes

• Compare owner comp to market-level dentist pay
• Include payroll tax adjustments when replacing doctor
• Adjust FCF if hygiene production must be rebuilt
• Review production reports to assess provider dependency

📌 SBA SOP Tip

If cash flow depends on a seller who is leaving, apply a personal goodwill discount or adjust deal structure.