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Dental Practice Appraisal

What equipment records does a buyer need?

By Dimitri LopezLast updated 6 min read

On this page
  1. Key facts
  2. Why does equipment due diligence matter?
  3. The records to request
  4. Check for liens and leases
  5. Regulatory records that don't transfer automatically
  6. Inspect, don't just read
  7. What should the purchase agreement say about equipment?
  8. Red flags
  9. Which free tools help with this?
  10. How FloorStack helps
  11. Free tools for this step
  12. Frequently asked questions
  13. Sources

A complete equipment inventory with ages and model numbers, maintenance and repair records, service contracts, and every lease, loan or lien on the equipment (Jaffe Law). Add x-ray, DEA and amalgam filings and the admin logins. In 2026, the amalgam report alone is due 90 days after a transfer of ownership (40 CFR 441.50), so request everything before you sign.

This page is general information, not legal advice. Work with a dental transition attorney.

Key facts

RecordWhy it mattersSource
Inventory with ages and model numbersSets capital needs after closingJaffe Law
Maintenance, service contracts, repair historyEvidence of conditionJaffe Law
Equipment leases, financing, liensEncumbered items may not transfer cleanlyJaffe Law
DEA registrationCan't be assigned or transferred without written DEA consent21 CFR 1301.52
Amalgam separatorNew owner of an existing source files a One-Time Compliance Report within 90 days of transfer40 CFR 441.50
X-ray registrationExample: California requires registration within 30 days of acquiring a reportable source17 CCR 30110
Software supportDentrix no longer supports installs on Windows 10 after June 30, 2026Dentrix

Why does equipment due diligence matter?

Because equipment condition sets how much cash you'll need after closing. Jaffe Law puts it directly: outdated or failing equipment means investing significant capital beyond the purchase price, and an inspection costs little compared with finding out after closing that the compressor or panoramic unit is failing (Jaffe Law). The seller's equipment list also feeds the purchase-price allocation; equipment is generally an IRS Class V asset, and no asset can be allocated more than its fair market value (IRS Form 8594 instructions).

The records to request

RequestWhat to look for
Equipment inventory (make, model, serial, room, install date)Matches what's on the floor; no "fully equipped op" shortcuts
Original invoicesConfirms age and ownership
Maintenance logs and service contractsRegular service; transferable contracts
Repair history and costs (2–3 years)Repeated failures on the same unit
Digital radiography and imaging (sensors, pano, CBCT)Age, condition, software version
Practice management and imaging software licensesLicense transfers to the buyer; current version
Sterilization equipment and spore-test logsWorking, compliant, logged
Compressor and vacuum service recordsHours, oil/water changes, capacity
IT infrastructure and cybersecurity statusSupported OS, backups, firewall, who has admin
Equipment leases and financingTransfer terms, payoff, consent required
Liens, judgments, encumbrancesMust be released at closing

Most of these come straight from Jaffe's buyer checklist (Jaffe Law). Ask for the list in spreadsheet form; the equipment inventory template shows the columns.

Check for liens and leases

Equipment that's leased or pledged as collateral isn't the seller's to sell free and clear. Jaffe's list asks for equipment leases and financing agreements, all debt documents, and any liens, judgments or encumbrances (Jaffe Law). Lenders typically perfect security interests by filing a UCC financing statement; under UCC §9-501 that's usually with a central state office, while fixture filings go in the real property records (UCC §9-501). Your attorney or lender will run the search and require releases at closing.

Regulatory records that don't transfer automatically

  • DEA. A registration can't be assigned or transferred without written DEA consent (21 CFR 1301.52). Plan your own registration early.
  • Amalgam separators. For an existing source, the One-Time Compliance Report is due 90 days after a transfer of ownership (40 CFR 441.50). Ask for the seller's report, separator make and model, and maintenance records.
  • X-ray. States register x-ray equipment and owners. California, for example, requires a person who acquires a reportable source to register within 30 days (17 CCR 30110). Check your state's rules and get the seller's registration and inspection reports.

Inspect, don't just read

Paper tells you what should be there. An inspection tells you what works. Consider a dental equipment specialist for major systems, as Jaffe recommends (Jaffe Law). Some consultants bundle this into a buyer review; Core Dental Consultants, for example, lists a $1,500 practice evaluation that flags equipment age and lease concerns (Core Dental Consultants). That's one firm's published price, not an endorsement.

Check technology hardest. A workstation that can't run a supported OS has little value; Microsoft ended Windows 10 support on October 14, 2025 (Microsoft). Confirm sensors and imaging software work with the PMS you plan to run; see sensor and PMS compatibility and the technology audit.

What should the purchase agreement say about equipment?

Ask your attorney to turn the due diligence into contract terms:

  • An equipment schedule attached to the agreement, matching the inventory you inspected, by serial number.
  • Title and liens. The seller delivers the listed equipment free of liens, with releases or payoffs at closing.
  • Condition. Equipment in working order at closing, with a pre-closing walkthrough.
  • Excluded items listed by name, so nothing disappears between signing and closing.
  • Leases and service contracts either assigned with the counterparty's consent or terminated.
  • Software licenses and logins transferred, with admin credentials delivered at closing.

These terms are what make the records you collected enforceable.

Red flags

  • No serial numbers or invoices.
  • Repeated repairs on the same compressor, vacuum or pano.
  • Equipment under lease the seller didn't disclose.
  • Software licenses in the IT vendor's name, or nobody at the practice knows the admin passwords.
  • Workstations on unsupported operating systems.
  • A seller who won't allow an inspection.

Which free tools help with this?

The equipment inventory & appraisal report (free tool, coming soon) is planned to turn your equipment list into an appraisal-ready report. The free equipment inventory CSV (coming soon) will give you the columns to start the list in a spreadsheet. The device compatibility checker (free tool, coming soon) is planned to check sensors, imaging units and bridges against your practice software. The credential ownership checklist (free tool, coming soon) is planned to list every login, license and account the practice should own, with a "password hostage" letter template. FloorStack Studio (live, free plan) places every device on your floor plan and gives you a device schedule with rooms, ports and cable lengths (FloorStack FAQ).

How FloorStack helps

FloorStack is a dental build-out platform that gives buyers a clean, comparable equipment record. The free Equipment inventory & appraisal prep tool (coming soon) will structure the seller's list by room with age and condition. The free Compatibility checker (coming soon) will flag sensors and software that won't work with your plans. The free Credential ownership checklist (coming soon) lists the logins to get at closing. Floor Stack ($39/mo, billed yearly) keeps the inventory live after you take over and flags end-of-life gear (FloorStack). Ask the seller to fill in the inventory template (CSV). More in the Dental Practice Appraisal hub. Also use FloorStack Studio (live, free plan).

Free tools for this step

Frequently asked questions

When should I request equipment records?

Right after the LOI, during due diligence (Jaffe Law).

Should I hire an equipment inspector?

For major systems, yes; Jaffe recommends a dental equipment specialist if you have concerns (Jaffe Law).

Does the seller's DEA registration transfer?

Not without written DEA consent (21 CFR 1301.52).

What amalgam paperwork do I need?

The One-Time Compliance Report, due 90 days after transfer for an existing source (40 CFR 441.50).

How do I find liens on equipment?

Your attorney searches UCC filings, usually at the state filing office (UCC §9-501).

What does the equipment add to the price?

It's part of the valuation; see how dental practices are valued and the inventory checklist.

Sources

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