In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, welcomes attorney Justin Morgan, JD, MBA, founder of Morgan Advisory Group, to share real-life “war stories” from dental practice transitions. Together, they unpack legal and financial pitfalls dentists should avoid—and opportunities that can change the trajectory of a career.

From hidden Botox expenses in med spas to phantom patient credits wiped off the books, and even a “Bitcoin blowout” practice fire sale, Wes and Justin reveal how careful due diligence, smart deal structures, and the right advisory team can protect buyers while uncovering hidden value.

Key discussions include:

• Why every practice transition carries risk—and how buyers should assess it.
• How undisclosed irregularities in expenses can lead to litigation.
• The importance of understanding accounts receivable (AR) vs. patient credits, and how mismanagement can derail a deal.
• The critical role of financial reports like aging AR in evaluating practice health.
• A shocking story of a dentist who used EIDL COVID relief loans for Bitcoin investments, lost it all, and was forced to sell at a massive discount.
• Why partnering with skilled advisors—legal, financial, and operational—is the best way to safeguard your investment.

Justin also explains the legal frameworks behind dental transitions, including asset sales, goodwill valuation, and common structures for financing deals. Wes brings a financial lens, connecting these stories to practical lessons every dentist-owner should apply before buying, selling, or expanding a practice.

This episode is packed with cautionary tales, legal insights, and practical takeaways to help dentists think like business owners and avoid costly mistakes.

Key Points

• Every practice transition carries risk—smart buyers weigh risks against upside potential.
• Hidden expenses, irregularities, or non-disclosures can result in litigation.
• Accounts receivable (AR) and patient credits must be carefully reviewed before closing a deal.
• Proper due diligence includes analyzing aging AR reports and patient credit balances.
• Practices sold below market value may offer high upside but come with added risk.
• Misuse of EIDL loans highlights how financial mismanagement can create rare buying opportunities.
• Buyers need a strong team: legal, financial, and operational advisors.
• Asset sales focus on goodwill, not stock or tax IDs—key for understanding practice valuation.