Every practice transition is unique and we put our skills and expertise to use in listening and understanding the needs of the parties involved. One of our greatest strengths as attorneys is that we are deal makers, not deal-breakers. When our clients tell us what is important to them, we take it to heart and negotiate the transaction with that in mind. With decades of legal experience, we also know what the important issues will be for the other party and we work to develop fair "win-win" outcomes for everyone.
We represent buyers and sellers, partners and associates in every stage of a transition.
- Outright sales
- Partnerships and group practices
- Family transitions
- Associate employment and independent contractor agreements
In the case of an outright sale, the contracts will address the key components such as purchase price, the allocation of the purchase price for tax purposes, how to handle the accounts receivable, real estate, redo work, work in progress, restrictive covenants, records maintenance, the seller’s transition responsibilities, and more.
The issues are different in the case of a buy-in to a group practice. Proper planning will greatly increase the chances of a successful long-term relationship. In the buy-in transaction, the key issues include the buy-in price, the tax allocation, how to compensate the partners in a way that recognizes the efforts that each partner contributes, practice management, and what happens if a partner exits the practice for one of a number of reasons.
Ultimately, the key to a successful transition is finding an arrangement that is fair to all of the parties involved and ensures that our client’s interests are protected.
The goal is to have the transaction a “win-win” for both doctors and to ensure the on-going success of the practice.
While the most common reason to value a practice is to plan for a sale, there are many reasons to seek valuation services. Often, the valuation is performed prior to bringing in a new associate who has the potential to become a partner. An appraisal is also typically required in sale transactions but may also be necessary in the context of a group practice dissolution, divorce or estate, and gift tax planning.
The goal is to provide both owners and third parties with a fair value of the practice. It is also usually a requirement for a purchasing doctor to secure bank financing.
We have appraised over two thousand dental and specialty practices, and our techniques have become recognized as industry standards.
OUR DENTAL PRACTICE TRANSITION PROCESS
After initial discussions to determine your needs, we send you our appraisal questionnaire. You will then return the completed questionnaire along with the requested financial information, tax returns, etc. We will then prepare the appraisal getting additional input from you and your accountant along the way, and then send you the completed appraisal. This usually takes about four weeks from the time we receive the requested documentation.
This appraisal is a powerful tool. Not only will it set forth the practice value and explain why the purchase is affordable to the buyer, but it will also contain a roadmap for structuring the transition, including allocation of the purchase price, the method of financing, and the expected tax consequences for each party.
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