When you find a dental practice you’re interested in purchasing, you’ll almost always be asked to sign a Non-Disclosure Agreement (NDA). We assist clients on both the buying and selling side of dental practices in the St. Louis region, and an NDA is one of the first steps in the process.
Why an NDA is Required
To properly evaluate a dental practice, you need access to sensitive information—things like:
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Production reports
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Profit & Loss statements
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Fee schedules
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Employee details
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Patient statistics
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Tax returns
This information is critical for assessing whether the practice is a good fit for you. But it can only be shared under the condition that it stays confidential.
Your Responsibilities Under an NDA
By signing an NDA, you agree to keep all practice details private. You may share the information only with trusted advisors who are directly helping you evaluate the practice, such as:
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Your spouse
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Accountant
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Banker
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Attorney
Even if you decide not to purchase the practice, the confidentiality requirement remains. Discussing the practice’s income, overhead, or other private details with anyone else could be harmful to the seller.
Why Confidentiality Matters
If patients discover the practice is for sale, they may switch to another dentist. If staff members hear rumors, they might look for new jobs before a buyer is secured. Both scenarios can damage the value of the practice you’re considering.
The NDA protects the seller while giving you the detailed insight you need to make an informed decision.
Before You Sign
You should always read the NDA carefully before signing. In general, it’s simply a promise to:
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Use the information only to decide if you want to purchase the practice.
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Safeguard the information from anyone not directly involved in your decision.
We’re Here to Help
If you have questions about how NDAs work in the dental practice purchase process—or if you’re thinking about buying or selling a dental practice in the St. Louis region—get in touch. We’d be glad to guide you through every step.
– Bill Otten & Kim Rey
