Due Diligence

Helping you make informed, confident decisions before you invest

Buying into a medical, dental or specialist practice is a significant personal and financial commitment. Whether you're acquiring equity, entering a business partnership, or purchasing commercial premises, it’s essential to have a clear understanding of the commitment involved.

Our Business Due Diligence Service is designed to give you clarity, confidence, and control — so you can invest with your eyes wide open.

due diligence services​

what we do

We conduct comprehensive financial, structural and tax due diligence for healthcare professionals. Our service is tailored for:

  • Medical and dental professionals buying into a practice 

  • Specialists acquiring equity in an existing group 

  • Doctors investing in practice premises or unit trusts 

  • First-time practice owners and entrepreneurs

why it matters

Due diligence isn’t about finding a reason not to invest—it’s about making sure your investment is the right fit for your goals, risk appetite, and financial position.

We help you avoid:

  • Overpaying for shares 

  • Tax surprises 

  • Unfavourable shareholder arrangements 

  • Short-term personal cash flow issues 

OUR PROCESS

We take the time to understand your goals, family structure and financial position. Then we assess the opportunity through a structured lens, reviewing key risks and opportunities across:

  • We analyse the practice’s financials and assess whether the valuation is fair. We also calculate your estimated dividend income and payback period on the investment.

  • We identify the tax implications of the proposed ownership structure, including compliance with:

  • We prepare 24-month rolling forecasts to assess the impact on your personal and family cash flow—including scenarios where profits may not be fully distributed.

  • Where property is involved, we review rent obligations, ownership structures, loan repayments, and expected distributions from unit trusts.

  • We assess your current and future goals to advise on the most suitable ownership structure—be it company, trust or partnership—ensuring it supports asset protection, tax efficiency, and long-term planning.

  • We work closely with your solicitor to review shareholder agreements, non-compete clauses, and exit provisions—ensuring they align with your expectations and long-term plans. Our role is to support your legal team with financial and structural insights, so you can make informed decisions with complete clarity.

our experience

We’ve advised on a wide range of buy-ins, practice acquisitions, and equity partnerships across medical, dental and specialist sectors. Our reviews are practical, independent, and tailored to your unique circumstances.

 

We also collaborate with your solicitor, accountant, and lender to ensure all aspects of your decision are supported.

let’s talk

If you’re considering buying into a practice, don’t go it alone.

CONTACT our team

Frequently Asked Questions

  • Medical due diligence provides a structured financial and tax review before committing to a practice investment. In due diligence for healthcare, the focus is on understanding valuation assumptions, projected income, ownership terms and tax exposure so doctors and specialists can assess whether the opportunity aligns with their financial goals and risk appetite.

  • Professional due diligence can identify risks such as inflated valuations, unsustainable earnings assumptions, restrictive shareholder agreements, inequitable profit allocation models and unforeseen tax liabilities.

    In healthcare settings, risk is often embedded within partnership structures, service entity arrangements, compliance obligations and distribution policies not immediately apparent in summary financial reports. A detailed review ensures these risks are identified before capital is committed.

  • Due diligence in healthcare clarifies ownership rights, loan obligations, lease or rent structures, service fee arrangements and distribution policies before funds are invested.

    Without a rigorous review, doctors and dentists may inadvertently expose themselves to cash flow pressure, compliance breaches or structural constraints that limit flexibility and future growth. Early analysis allows these issues to be negotiated or restructured before settlement.

  • In many medical practice transactions, sellers prefer a share sale because it may provide them with a more favourable tax outcome. For the buyer, this means purchasing the shares in the company that operates the practice rather than the individual business assets.

    Because the company itself continues unchanged, the buyer effectively takes ownership of the existing entity — including any historical liabilities it may hold. Due diligence is therefore essential to ensure there are no undisclosed risks within the company before the transaction proceeds.

  • If a buyer acquires shares in a company, they may inherit obligations that already exist within the business. These can include:

    • GST and income tax liabilities

    • Payroll tax exposures

    • Employee entitlements

    • Contractual obligations with suppliers or service providers

    • Financing arrangements or security interests

    • Potential disputes or contingent liabilities

    A thorough due diligence process helps identify these risks early so they can be addressed or negotiated before settlement.

  • Seller guarantees or warranties can provide some protection, but they are not a substitute for proper due diligence.

    For example, a seller may offer personal guarantees for historical liabilities, but these protections are only effective if the seller has the financial capacity to honour them in the future. In some cases, additional safeguards — such as legal warranties, indemnities or security arrangements — may be required to properly protect the buyer.

  • A structured due diligence process reviews the financial performance of the practice, the fairness of the proposed valuation and the legal and tax structure of the business. This ensures that buyers fully understand the financial, structural and tax implications of the investment before proceeding, allowing them to negotiate appropriate protections and make informed decisions about the opportunity.

  • ASTUTEMED provides due diligence services exclusively for healthcare professionals. Our approach combines financial modelling, tax structuring expertise and deep industry insight specific to medical, dental and specialist practices.

    We assess your investment through a healthcare lens, not a generic business advisory framework, ensuring risks unique to private practice structures are properly evaluated.

    To better understand potential risk areas before committing, enquire now for a confidential discussion.

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