Basic Understanding of Key Dental Practice Purchase Agreement Elements Understanding key elements in a dental practice purchase agreement are necessary to ensure a successful dental practice transition. Making the decision to buy or sell a dental practice is a major life event.  Once that decision has been made, navigating legal documents can certainly feel daunting. […]

Contracts, and the negotiations that surround them, are a significant part of the dental transition process. The most common contracts include the asset purchase agreement, real estate lease or sale agreement, and employment contract. Having the right team in place is essential to navigating this area successfully. Types of Contract Agreements for Dental Practices The […]

I agree with Madeleine Albright, former Secretary of State, when she said, “Every step in life should be more exciting than the last.” If you are contemplating an exciting new stage in your life, from buying your first practice to retiring from dentistry, then a roadmap is critical to your success. However, it is the […]

Do you know the value of your dental practice if something were to happen to you? It’s important to know the value of your dental practice. We are emerging from the most surreal time that we are likely to ever encounter in our lifetime. All of us have paused to reflect on what has happened […]

Due diligence is a phrase becoming more commonly used by buyers in the market. However, it does mean different things to different people. Typically, when marketing a practice, prospective buyers visit the office and meet the seller. If they are interested, the broker will send financial statements and additional data. This is enough to make […]

Whether you’re buying or selling a dental practice, one of the most important initial documents is an Offer to Purchase (OTP).

None of us want to discuss or think about death or long-term disability. Humans cope with the possibility of death by ignoring it, which leads to a lack of preparation when the inevitable happens.

Dental practice buyers and sellers may think that a sale is complete when the sale agreement is signed, the check issued, and handshakes completed. However, a successful transition needs much more work. Since 1984, I have sold over 250 practices. With this experience, I developed a practice-transition checklist. Results include the following: • Less than […]

Author’s Note: I received an email not long ago from a dentist in my state regarding credit balances, or money owed patients. Here is the message. Names have been changed to keep identities private. “I don’t know if you remember me or not, but I worked with Dr. Smith several years ago, and I’m currently working […]

There is a need for employers to have appropriate protection in maintaining customer relationships after an employee leaves. In general, courts recognize this. The two basic types of restrictive covenants are “noncompete,” which precludes a former employee from working in the same business as the employer for a certain period of time, and “nonsolicitation,” which restricts […]

A dental practice transition requires expertise in many different areas of business and the law. I will narrow my advice as it applies to the U.S. federal income tax laws as they may apply in dental practice transitions. Proper tax planning and preparations in the sale of your dental practice can afford the seller of […]

PRACTICE TRANSITIONS often require buyers to deal with leased facilities and a host of unfamiliar issues. Stability is the name of the game in a transition, so leaving a practice in its current location is wise. This does not mean you’re stuck without options on the lease of the current facility. The seller has one important […]

If you’ve ever watched one of the popular trauma ER documentaries, you’ve probably thought, “I’m glad that wasn’t me!” After reading these actual practice purchase traumas, you may think, “I’M GLAD IT WASN’T ME.” FUTURE SALE DATE: A practice had $300K collections. Nearby, a young dentist agreed to buy the practice to merge it into […]

Dental practice sales are very difficult transactions. They typically involve a young buyer with limited experience in the world of business, and an older seller who has great concerns regarding the perpetuation of his or her legacy. To compound the problem, this is usually a once-in-a-career event for both parties, and neither party is very […]

(Please note that the following article is not intended to be a legal opinion or to address other legal issues that might arise in the case of marriage dissolution. Typically, divorce law is governed by state statute and state legal precedence. Accordingly, one should seek competent legal advice from an attorney familiar with marriage dissolutions.) […]

When practicing as a partner, one key agreement that should be in place is the buy-sell  agreement.  This stipulates the orderly purchase of a partner’s share of the practice if a partner  dies, becomes disabled, retires, or leaves the practice prior to retirement. Here are 10 questions to ask about your buy-sell agreement: 1. Is […]

In order to maintain the best possible relationship between buyer and seller during a practice sale, it’s important to have an intermediary or buffer such as a broker, attorney, or accountant to assist in the negotiation of the sale of the practice assets. Selling a dental practice usually requires some negotiation, and having this  intermediary […]

The emergence of women in dentistry has been a slow but steady phenomenon that has challenged many of us to examine our preconceptions and stereotypes of how women practice. Besides the many influences women are having on the clinical side of the profession, they also are impacting the management and transitioning of practices. Recently, Gretchen […]

With a book and a little bit of free time, it is possible for a dentist to perform his or her own electrical work. The problem with this approach to a dental practice sale is that disputes and liabilities resulting from the sale may be more significant than a blown electrical fuse or a little […]

In the course of a year, we will receive several calls from a grieving spouse or staff member, informing us that the doctor has suddenly passed away. The spouse or staff member has been given our name by other dentists, the dental society, the dental association, or the dental board. The question is always the […]