For those who are currently looking to grow their own medical practice or are considering investing in one, it is important to do your due diligence.

Due diligence can be defined as "the study that ought to be taken" and involves the process of extensively investigating and substantiating all information provided by the seller with the aim of becoming deeply informed and better placed to judge commercial risk.

We recommend you look at the business's operations, financial performance, legal and tax compliance, customer and supplier contracts, intellectual property, assets and other details. We can assist in defining the scope of your investigations.

The information you collect during due diligence is highly sensitive and confidential. The seller might want you to sign a non-disclosure agreement before you access this information.

We have developed a checklist that contains potential questions you need to ask when investigating the business of a medical practice you are considering buying.

You can download this PDF to view the extensive checklist as compiled by Anne Hurley.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.