What Has The Attitude Of Management Been In Regards To Expansion With The Practice You Are Considering To Buy?

One should monitor the Cash Flow from Investing Activities (CFI), to get an impression of how money has been invested into the practice. This information should clue you into the style of management you are dealing with and indicates one of the more difficult to quantify attributes of practice value. You would find your CFI information on your Cash Flow Statement or the Statement of Financial Position. The value identified represents the change of investment funds from one year to the next.

Cash Flow from Investing (CFI) activities include the purchase of assets that are productive, like a digital x-ray and the sale of assets that are no longer productive. This also includes the buying and selling of shares in the stock market as an example of an investment the is run outside the practice, but still run through the practice's business structure. Investing activities are a good indicator of management attitude towards growth, of the dentist's attitude towards growth.