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You’ve spent years obtaining your professional credentialing, honing your skills, and building client relationships—all to contribute to someone else’s bottom line. You’ve made the decision that it’s time—whether you’re ready to strike out on your own, looking to build equity, or seeking greater independence—purchasing a professional practice can be one of the most important and rewarding investments of your career.
But buying a practice involves much more than negotiating a purchase price. From securing financing and evaluating cash flow to managing the seller transition, successful acquisitions require careful planning and expert guidance.
Whether you’re a physician, dentist, veterinarian, optometrist, attorney, or accountant, if you’re considering buying a professional practice in Florida, here’s what you need to know before making an offer.
It’s easy to get excited when an ideal practice hits the market. However, the most successful buyers begin by defining their long-term goals before evaluating opportunities.
Ask yourself:
Having a clear vision helps you evaluate opportunities objectively and avoid purchasing a practice that looks attractive on paper but doesn’t align with your professional goals.
Buying a practice is not a do-it-yourself project. Having the right advisors in place before you begin your search can help you avoid costly mistakes and move quickly when the right opportunity arises.
At a minimum, your team should include:
No matter what type of practice you are purchasing, experienced advisors can provide valuable guidance throughout the process.
Successful acquisitions happen during the preparation phase, long before signing a purchase agreement.
One of the biggest misconceptions among professionals is that student loan debt automatically disqualifies them from obtaining financing.
Lenders who specialize in professional practice acquisitions understand that substantial student debt is common among physicians, dentists, veterinarians, and other licensed professionals.
What matters most is how your overall financial picture is structured.
Before pursuing a practice acquisition, consult with your banker to evaluate:
In some situations, restructuring existing debt can improve cash flow and strengthen your borrowing capacity. The objective isn’t necessarily eliminating debt; it’s creating financial flexibility as you transition into ownership.
A comprehensive business plan serves as both your roadmap and your accountability tool during the first years of ownership.
Before submitting an offer, develop a plan that addresses:
Just as importantly, develop a detailed budget that captures the full cost of ownership. Include a realistic scenario, an upside forecast, and a downside projection. It is important to show that you’ve thought through all possibilities.
Many buyers underestimate expenses such as:
A buyer who demonstrates a thorough understanding of the full cost of the business is more likely to gain the buy-in of lenders than a buyer focused solely on the acquisition price.
Professional practice acquisitions require specialized financing solutions. Working with a lender experienced in healthcare and professional service businesses can make a significant difference in both the financing process and long-term success of the transaction. Cogent Bank’s healthcare banking team works with physicians, dentists, veterinarians, optometrists, attorneys, accountants, and other professionals across Florida.
Common financing options include:
These loans are frequently used to finance both tangible assets and goodwill associated with acquiring a professional practice.
SBA financing often offers longer repayment terms and lower downpayment requirements, making it an attractive option for first-time practice owners.
Acquisitions may involve upgrading clinical, diagnostic, or office technology. Equipment financing can help preserve working capital while funding those improvements.
If the practice purchase includes a building, commercial real estate financing may be part of the transaction structure.
A line of credit can provide important liquidity during the transition period while revenue stabilizes and operational changes are implemented.
Many acquisitions utilize a combination of these financing solutions. Cogent Bank’s business term loans are structured with the flexibility professional practices require. Start the lending conversation before you make an offer, knowing your qualification range and expected timeline gives you a stronger negotiating position.
Because underwriting and approval timelines vary, it’s wise to begin conversations with a lender before making an offer. Understanding your financing capacity can strengthen your negotiating position and help prevent delays.
One of the most common mistakes buyers make is focusing exclusively on the acquisition price while overlooking the full financial commitment involved.
The actual cost of acquiring a practice often includes:
Maintaining adequate cash reserves after closing is critical to covering payroll, rent, supplies, and other operating expenses while the business stabilizes.
Outdated systems can create inefficiencies and negatively impact patient or client experience. Buyers often invest in upgraded equipment shortly after acquisition.
Renovations and facility updates may be necessary to meet current standards or support future growth.
Employee retention is often critical to a successful transition. Buyers should account for onboarding expenses, training, compensation adjustments, and retention initiatives.
Building these expenses into your financing request from the outset can help avoid the need for additional funding after closing.
In professional service businesses, relationships matter.
No matter what type of professional practice you are acquiring, clients and patients often have strong personal connections with the current owner.
A well-planned transition should include:
For dentists and veterinarians especially, patient and client loyalty is often closely tied to the existing provider relationship. A thoughtful handoff can significantly improve retention and long-term success.
Healthcare professionals should also prioritize insurance credentialing early in the transition process, as delays can create substantial cash flow disruptions after closing.
Before moving forward with a purchase, remember these essential principles:
The more preparation you complete before making an offer, the smoother your acquisition process is likely to be.
Not necessarily. Most lenders specializing in professional practice financing understand that physicians, dentists, veterinarians, and other professionals often carry substantial student loan obligations. What matters is your overall debt structure and projected cash flow.
Yes. Experienced practice lenders generally recognize goodwill as a legitimate asset when evaluating professional practice acquisitions. However, not all lenders are comfortable with goodwill-heavy transactions, making lender selection especially important.
Acquisitions involve purchasing the entire practice. A partnership buy-in allows you to acquire a partial ownership stake, often with a path toward full ownership over time. Cogent Bank supports financing both structures.
Timelines vary depending on loan structure, transaction complexity, and documentation requirements. Starting financing conversations before signing a purchase agreement can help reduce delays and streamline the closing process.
Purchasing a professional practice is a major milestone and having the right banking partner can make all the difference.
Cogent Bank works with healthcare providers, attorneys, accountants, and other professionals throughout Florida, supporting practice acquisitions, partnership buy-ins and buy-outs, equipment financing, expansion projects, relocations, remodeling efforts, and practice-related commercial real estate needs.
If you’re considering purchasing a professional practice in Florida, connect with the experienced professionals at Cogent Bank before making an offer, signing a purchase agreement, or finalizing your transition plans. Contact us today! Early planning can help position your acquisition and your future practice for long-term success.
Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.
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