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Dental Group Practice Buy-In

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  • #31
    For the doctors and dentist’s that wish to spend time, accounting for Goodwill has book and tax considerations. One point not made, from purely and accounting viewpoint, impairment of goodwill (loss of value) requires a write down. Different options are available for SEC companies, other public companies, and others. Write down will impact your bottom line.

    There is a niche of firms that specialize, groups in the large firms that handle the big dollar issues.
    Smaller accounting firms will look up the issues and run threw the minimum testing. Just keep in mind, it is based on value and can be too high. I posted one article if anyone chooses to start getting into the weeds (and soil conditions to be tested!). This is out of my wheelhouse now. Just pointing in the direction of the literature. Good luck.

    https://www.cpajournal.com/2018/09/26/the-new-guidance-for-goodwill-impairment/

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    • #32
      That’s interesting.

      If the good will is depreciable, what stops you from depreciating the goodwill to zero and structuring it such that you obtain a small business CGT exemption, so that you pay little CGT on sale of the depreciated asset ?

      Also, Not having sold a practice, I wonder why vendors load up the sale price with good will, if they are able to obtain small business CGT concessions ?

      Those are question for an accountant or tax lawyer I guess.

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      • #33
        Just as in asset protection, the legal form of your business will impact how you are taxed upon exit.
        https://exitadviser.com/selling.aspx?id=tax-considerations-selling-business

        Simple overview attached.

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        • #34
          No deprecation?

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          • #35




            Please please please get professional advice.
            Click to expand...


            Any good recommendations on attorney and/or CPA . Are there any dental specific CPAs or attorneys ? Please advise thanks!

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            • #36
              Phase 2 associates or Radman White are both endo practice brokers who might help you evaluate the deal.

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