---
title: "What Is Due diligence? Dental Practice Glossary"
description: "The buyer's review of a practice's records, contracts and finances before closing a purchase, to confirm what is being bought."
url: https://joncopeland.multisites.ai/glossary/due-diligence
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Ownership and transitions

# Due diligence

The buyer's review of a practice's records, contracts and finances before closing a purchase, to confirm what is being bought.

Due diligence is the careful review a buyer does before closing a deal. Cornell's legal reference defines the term as the level of reasonable care or attention expected to avoid liability, especially in legal and financial matters.

In a [practice acquisition](https://joncopeland.multisites.ai/glossary/practice-acquisition), buyers often review financial statements, tax returns, contracts, leases and patient and staff records. The SBA's guide to buying an existing business sums up the point this way: do your due diligence.

A review of documents is not the same as a [practice valuation](https://joncopeland.multisites.ai/glossary/practice-valuation), which estimates worth. The scope of a review depends on the deal. Buyers should ask an attorney, a CPA and a lender what to check. This entry is a general definition only.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Practice acquisition](https://joncopeland.multisites.ai/glossary/practice-acquisition)
-   [Practice valuation](https://joncopeland.multisites.ai/glossary/practice-valuation)
-   [Letter of intent](https://joncopeland.multisites.ai/glossary/letter-of-intent)
-   [Practice transition](https://joncopeland.multisites.ai/glossary/practice-transition)

## Sources

1.  [Cornell Legal Information Institute, due diligence](https://www.law.cornell.edu/wex/due_diligence)
2.  [SBA, Buy an existing business or franchise](https://legacy.sba.gov/business-guide/plan-your-business/buy-existing-business-or-franchise)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)