DEBT SERVICE INTEREST $26, % PRINCIPAL $46, % TOTAL DEBT SERVICE $73, %

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1 New Orleans, Louisiana General Dentistry FINANCIAL DATA SUMMARY FOR PRACTICE /16/ :01 The following summary illustrates a projected year's income and expenses for the subject practice which incorporates a 4% increase in fees and overhead expense but no increase in production. This summary is not a representation or warranty of future practice performance. Purchasers should obtain qualified legal and accounting counsel prior to any purchase decisions. NOTE: Practice price does not include accounts receivable. PRACTICE INCOME EXPECTED GROSS COLLECTIONS $775, % HYGIENE COMPONENT $155, % DENTIST COMPONENT $620, % RETAINED SELLER PURCHASER $620, % VARIABLE EXPENSES WAGES, PAYROLL TAX, ETC. $244, % LABORATORY $73, % CLINICAL SUPPLIES $62, % OTHER VARIABLE EXPENSE $39, % TOTAL VARIABLE EXPENSE INCREASE $419, % FIXED EXPENSES RENT $37, % PHONE, UTILITIES $14, % LEGAL & ACCOUNTING $6, % INSURANCE $6, % OTHER FIXED EXPENSE $23, % TOTAL FIXED EXPENSE INCREASE $87, % DEBT SERVICE INTEREST $26, % PRINCIPAL $46, % TOTAL DEBT SERVICE $73, % SUMMARY EXPECTED COLLECTIONS $775, % EXPECTED EXPENSES $507, % DEBT SERVICE $73, % EXPECTED NET INCOME & PERCENT OF PERSONAL PRODUCTION $194, % PURCHASER PRODUCED PRODUCTION $620, % EQUITY INCREASE & PERCENT OF PERSONAL PRODUCTION $46, % TAX SAVINGS FROM DEPRECIATION & PERCENT OF PERSONAL PRODUCTION $24, % TOTAL ECONOMIC BENEFIT-CASH, TAX SAVINGS, EQUITY & % PERSONAL PROD. $265, % THIS CASH FLOW EXAMPLE IS BASED ON THE FOLLOWING ASSUMPTIONS: PRACTICE SALES PRICE & PERCENT OF GROSS $539,000 72% WORKING CAPITAL $37,000 TOTAL PRACTICE LOAN $576,000 PRACTICE LOAN INTEREST RATE 5.00% PRACTICE LOAN TERM IN MONTHS 120 PRACTICE MONTHLY PAYMENT $6,109 9% NA NA TOTAL OF ALL MONTHLY PAYMENT $6,109 9% ESTIMATED MONTHLY HYGIENE AND PROFIT $6,711 10% 6/16/20143:21 PM Page 1

2 New Orleans, Louisiana DATA SUMMARY FOR PRACTICE NUMBER 6878 The following data is provided by the owner of the practice. It is believed to the best of the owner's knowledge to be a true and accurate representation of the facts of the practice. It is the responsibility of any purchaser to verify all information contained herein and to seek qualified counsel in the interpretation and verification thereof. OFFICE DATA SQUARE FOOTAGE OF OFFICE 2,226 EXPANDABLE FOOTAGE If adjacent space become available CURRENT MONTHLY RENTAL i.e. "1200" 3,097 PRICE PER SQUARE FOOT 17 IS OFFICE HANDICAPPED ACCESSIBLE? Yes NUMBER OF PARKING SPACES 70 PROXIMITY OF PARKING PLACES Adjacent to building TOTAL NUMBER OF EQUIPPED OPERATORIES 4 NUMBER OF PLUMBED BUT UNEQUIPPED OPERATORIES 2 NUMBER OF OPERATORIES USED PRIMARILY BY DENTIST(S) 3 NUMBER OF OPERATORIES USED PRIMARILY BY HYGIENIST(S) 1 WORK SCHEDULE PLANS AFTER SALE OF PRACTICE NUMBER OF UNPLUMBED AND EMPTY OPERATORIES DO YOU OWN YOUR BUILDING? DO YOU WISH TO SELL THE BUILDING? WAS BUILDING APPRAISED? WHEN? APPRAISED PRICE IF NOT APPRAISED, ESTIMATED BUILDING PRICE IF NOT FOR SALE, MO. RENTAL AMOUNT ANNUAL REAL ESTATE TAXES ANNUAL REAL ESTATE INSURANCE COST DATE OF LEASE i.e. "1/1/99" 40,512 DATE LEASE ENDS - i.e. "1/1/04" 41,608 RENEWAL OPTIONS Negotiable IS THERE AN OPTION TO PURCHASE? BUILDING VALUE TO BE USED #NUM! PURCHASER MORTGAGE INTEREST RATE 0 PURCHASER MORTGAGE TERM - YEARS 15 PURCHASER MONTHLY PAYMENT PURCHASER CURRENT MONTHLY RENT PRICE PER SQUARE FOOT Relocate out of New Orleans DAYS/WEEK CURRENTLY WORKED 5.0 HOW MANY DAYS WOULD YOU PREFER TO WORK FOR BUYER DESIRED WORK DAYS/WEEK 1ST YR DESIRED WORK DAYS/WEEK 2ND YR DESIRED WORK DAYS/WEEK 3RD YR DESIRED WORK DAYS/WEEK 4TH YR DESIRED WORK DAYS/WEEK 5TH YR DESIRED WORK DAYS/WEEK 6TH YR 6/16/20143:21 PM Page 2

3 PRACTICE DATA MANAGEMENT CONSULTANT IN LAST 5 YRS? IF SO WHO? ne RESULTS DESCRIBE INTERNAL MARKETING ne DESCRIBE EXTERNAL MARKETING Postings on church bulletin; ad on Hispanic Business Guide HAS GROSS CHANGED SIGNIFICANTLY? WHY? LIST SEDATIONS USED - NITROUS, DOCS, IV SEDATION IS YOUR PRACTICE MERCURY FREE - NO AMALGAM? Mostly WHAT TYPE RECALL SYSTEM WHAT TYPE COMPUTER SYSTEM PURCHASER MUST PERSONALLY VERIFY PATIENT POPULATION DATA & REDUCED FEE PLANS ESTIMATE NUMBER OF PTS LAST 18 MONTHS 2,500 AVERAGE NUMBER OF NEW PATIENTS PER MONTH 60 AVERAGE NUMBER PTS TREATED PER DAY BY DENTIST(S) 15 AVERAGE NUMBER PTS TREATED PER DAY BY HYGIENIST(S) 8 HOW FAR AHEAD IS DENTIST SCHEDULED? 2 weeks HOW FAR AHEAD IS HYGIENIST SCHEDULED? 1 month PRACTICE DATA % INCOME FROM CASH 15% % OF PATIENTS PAYING CASH 10% % INCOME FROM FEE FOR SERVICE INSURANCE 60% % OF PATIENTS WITH FEE FOR SERVICE INSURANCE 65% % PRACTICE INCOME FROM REDUCED FEE PLANS 15% % OF PATIENTS WITH REDUCED FEE PLANS 20% % PRACTICE INCOME FROM CAPTITATION % OF PATIENTS WITH CAPITATION % PRACTICE INCOME FROM MEDICAID 10% % OF PATIENTS WITH MEDICAID 5% % PRACTICE INCOME FROM REDUCED FEE PLANS 25% % OF PATIENTS WITH REDUCED FEE PLANS 25% SCHEDULING DATA MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY 9 AM - 2 PM SATURDAY SUNDAY OWNER HOURS WORKED PER WEEK 35 HOURS WORKED PER WEEK HYGIENIST HOURS WORKED PER WEEK 16 DENTIST PATIENT VISITS PER YEAR 3750 HYGIENE PATIENT VISITS PER YEAR 800 NUMBER OF DAYS WORKED PER YEAR 250 NUMBER OF WEEKS WORKED PER YEAR 50 COLLECTION DATA WHAT IS YOUR COLLECTION PERCENTAGE 90% ACTUAL ACCOUNTS RECEIVABLE BALANCE $30,324 WHAT IS YOUR PATIENT CREDIT BALANCE ACCOUNTS RECEIVABLES - CURRENT ACCOUNTS RECEIVABLES DAYS ACCOUNTS RECEIVABLE DAYS ACCOUNTS RECEIVABLE >90 DAYS 6/16/20143:21 PM Page 3

4 WHAT PERCENTAGE OF THE PRACTICE INCOME IS: HYGIENIST PRODUCTION 20% OPERATIVE 24% PEDODONTICS 1% ORTHODONTICS 9% IMPLANTS 1% REMOVABLE PROSTHETICS 14% FIXED PROSTHETICS 10% ENDODONTICS 13% PERIODONTICS 2% ORAL SURGERY 5% COSMETIC TMJ TREATMENT 1% SOFT TISSUE MANAGEMENT DIAGNOSTIC TOTAL 100% WHAT SERVICES ARE REFERRED OUT? REVENUES SOURCES IS ANY OF YOUR REPORTED INCOME FROM ANY OTHER SOURCE THAN PATIENT TREATMENT FROM THIS PRACTICE? IF SO HOW MUCH IN CURRENT PERIOD? IF SO, HOW MUCH FOR LAST YEAR? IF SO HOW MUCH FOR THE PREVIOUS YEAR? WHAT IS THE SOURCE OF THIS OTHER INCOME? FEE SCHEDULE ADULT PROPHY $95 TWO SURFACE ANTERIOR COMPOSITE $105 CORE BUILD-UP $160 CROWN - GOLD/PORCELAIN $700 ANTERIOR CANAL ROOT CANAL $490 PANORAMIC X-RAY $110 TWO SURFACE POSTERIOR COMPOSITE $105 CROWN - PORCELAIN CERAMIC $700 LABIAL PORCELAIN VENEER $700 BICUSPID ROOT CANAL $525 AVERAGE OF FEES $369 PERCENT OF FEE PARITY 68% DEMOGRAPHIC DATA WHAT IS APPROX. POPULATION OF YOUR CITY OR TOWN 500,000 WHAT IS APPROX. POPULATION OF YOUR DRAWING AREA 50,000 APPROXIMATE NUMBER OF GENERAL DENTAL PRACTICES 150 WITHIN New Orleans MAJOR EMPLOYERS IN AREA DESCRIBE ANY MAJOR ECONOMIC CHANGES IN YOUR DRAWING AREA Gentilly is almost back to pre-katrina levels 6/16/20143:21 PM Page 4

5 STAFF DATA POSITION YEAR STAY? VALUE OF BENEFITS ANNUAL SALARY AND/OR COMMISSION PERCENT RECEPTIONIST OFFICE MANAGER 2008 Yes $12,000 $61,000 INSURANCE OTHER FRONT DESK BOOKKEEPER ASSISTANT 2008 $ 4,800 $29,000 ASSISTANT 2012 Yes $ 4,800 $27,500 ASSISTANT 2011 Yes $15,750 ASSISTANT ASSISTANT HYGIENIST 2012 Yes $75,000 HYGIENIST HYGIENIST HYGIENIST LAB TECHNICIAN LAB TECHNICIAN WHAT BENEFITS DO YOU PROVIDE FOR THE STAFF? Health insurance for full time staff COST OF BENEFITS PROVIDED FOR EACH EMPLOYEE DO YOU HIRE ANY UNPAID FAMILY MEMBERS? WHAT POSITION DO THEY HOLD AND WHAT IS THE ESTIMATED FAIR MARKET VALUE OF THEIR JOB? ARE THERE ANY EMPLOYEES WHO ARE PAID MORE OR LESS THAN THE NORMAL SALARY FOR THEIR POSITION? WHAT POSITIONS AND WHAT IS AMOUNT OF OVER/UNDER COMPENSATION FOR EACH COLLECTION CENTERS YEAR TO DATE LAST YEAR TWO YEARS AGO PERIOD 1/1/ /15 / GROSS COLLECTIONS $29,688 $751,016 $690,475 OWNER COLLECTIONS $25,188 $608,323 $552,380 HYGIENIST COLLECTIONS $ 4,500 $142,693 $138,095 COLLECTIONS $ $ $ COLLECTIONS $ $ $ COLLECTIONS $ $ $ COLLECTIONS SALARY IN DOLLARS OR COMMISSION PERCENT HYGIENIST SALARY IN DOLLARS OR COMMISSION PERCENT $ OR % 6/16/20143:21 PM Page 5

6 CONFORMITY DATA DOES YOUR PRACTICE MEET OSHA STANDARDS? WHY NOT? Yes DOES YOUR PRACTICE MEET HIPAA STANDARDS? WHY NOT? Yes ANY DISCIPLINARY ACTION IN LAST 7 YRS? EXPLAIN ANY DISCIPLINARY ACTION IN LAST 7 YRS? EXPLAIN ANY PRACTICE LAWSUITS FILED IN PAST TEN YRS. EXPLAIN DESCRIBE ANY HEALTH PROBLEMS WHICH WOULD AFFECT ne YOUR PRACTICE OF DENTISTRY INSURANCE EXPLANATION TOTAL EXPENSE FOR INSURANCE IN CURRENT PERIOD $35,039 HOW MUCH OF TOTAL IS FOR OWNER HEALTH INSURANCE? $13,704 HOW MUCH OF TOTAL IS FOR STAFF HEALTH INSURANCE? $11,900 HOW MUCH OF TOTAL IS FOR OTHER OWNER BENEFITS? $5,275 HOW MUCH OF TOTAL IS FOR MALPRACTICE INSURANCE? $3,200 HOW MUCH FOR TOTAL IS FOR BUILDING INSURANCE? $960 TAXES AND LICENSES EXPLANATION TOTAL EXPENSE FOR TAXES $16,733 HOW MUCH OF TOTAL IS FOR PAYROLL TAXES? $12,581 HOW MUCH OF TOTAL IS FOR STAFF PAYROLL TAX? $11,491 HOW MUCH OF TOTAL IS FOR OWNER PAYROLL TAX? $1,090 HOW MUCH OF TOTAL IS AD VALOREM (PRACTICE EQUIP)? $3,497 HOW MUCH OF TOTAL IS FOR REAL ESTATE TAXES? PENSION EXPLANATION TOTAL EXPENSES FOR PENSION PLAN $2,030 HOW MUCH OF TOTAL IS FOR STAFF $2,030 HOW MUCH OF TOTAL IS FOR OWNER? BENEFITS EXPLANATION TOTAL EXPENSE FOR EMPLOYEE BENEFITS $13,930 HOW MUCH OF TOTAL IS FOR STAFF? $13,930 HOW MUCH OF TOTAL IS FOR OWNER? REDUCED FEE PLANS NAME OF PLAN PAYS WHAT PERCENT OF YOUR STANDARD FEE 6/16/20143:21 PM Page 6

7 DESCRIBE YOUR PRACTICE, STAFF, PATIENTS, COMMUNITY, AND PRACTICE PHILOSOPHY AND THE BEST STRENGTHS AND WORST WEAKNESSES OF YOUR PRACTICE: We have a great staff. The hygienists have been as much a part of this practice as I have. They love their patients and are technically very sound. We treat patients like we would like to be treated. Try to work hard and have some fun in the process. 6/16/20143:21 PM Page 7