Buy-Sell Agreements for Dental & Medical Practices

First, let’s make sure there is no confusion about what buy-sell agreements are and are not. Buy-sell agreements are not asset or stock purchase agreements that are drafted to buy or sell a dental or medical practice between unrelated parties. Our healthcare attorney in Maryland and DC draft and review buy-sell agreements as part of business planning for our dental and medical practice clients and are intended to foresee and address any ownership issues that may arise in the future if a practice has more than one “owner.” In fact, buy-sell agreements are rarely a separate document; instead, they are provisions that are usually included in shareholders’ agreements, operating agreements, and partnership agreements.

THE PURPOSE OF BUY-SELL AGREEMENTS IN DENTAL & MEDICAL PRACTICES

The purpose of entering into a buy-sell agreement is to deal with certain contingencies if one or more owners wants to sell her/his interest in the practice, passes away, becomes disabled or incapacitated, divorces, or if there is a partnership dispute among the owners. You can immediately tell by reading the tealeaves that if your partner suddenly decides to sell her/his interest in your mutually owned practice, you may find yourself to be partners with a complete stranger, a nightmare that no one wants in their lives. 

Similarly, if your partner passes away, the estate of your deceased partner could potentially sell your deceased partner’s interest to another licensed professional without your approval, unless you have the proper documentation in place. Please read my article on divorce law for doctors and dentists who own private practices to learn more about what happens to the private practices of dentists and doctors in divorce cases.

But it is worth mentioning here that a practice owner’s interest may be considered martial property (or partial marital property) and subject to equitable division of marital assets. Buy-sell agreements are one of the provisions that you could put in place now to avoid and/or minimize the effects if you or your partner will be divorced. Please read the article for more details.

HOW BUY-SELL AGREEMENTS WORK

Our healthcare attorneys in Maryland and DC draft buy-sell agreements so that they devise a process and/or formula regarding what should happen to a partner’s interest in a mutually owned dental or medical practice should one of the scenarios mentioned above occur. A buy-sell agreement should provide you with an option to buy your partner’s interest in your dental or medical practice, which is usually referred to as the right of first refusal or option to buy.

A well-drafted buy-sell provision should include a pre-determined price or a formula for deciding the purchase price for your partner’s interest if you decide to exercise your first right of refusal. Buy-sell agreements are a perfect example of how having the proper legal structure and documents in place could avoid or minimize uncertainty and potential legal headaches that could cause substantial legal and attorney’s fees to litigate in court.

BOOK YOUR CONSULTATION with our experienced healthcare lawyers in Maryland and DC HERE.

A. Shane Kamkari, Esq.

Healthcare Attorney in Maryland and DC

ask@DentalMedicalAttorney.com

301-309-9002

Member of DC Bar DC Bar – Home

Member of MD Bar Maryland Attorney Listing | Maryland Courts (mdcourts.gov)

 
 
 
 
 
 
 
 
 
 
 
 
 sanaz vahid 
 
6. November, 2021.
 
 
  
I have been lucky enough to work with him since I finished residency, he started reviewing all my contracts for employers as an independent dental contractor. From there he has been alongside me in my career with any legal advise I have ever needed. From residency to buying my practice to employee contracts to general counsel Mr. Kamkari is meticulous and very professional. He is always accessible and always helpful. I’m lucky to have him guide me through any major professional decision. I would never change my lawyer.Sanaz Vahid DDS
  
 
 
 
 
 
 
 dean nazem 
 
30. October, 2020.
 
 
  
I’ve known Mr. Kamkari for years as a trusted attorney. He was instrumental in selling one of my dental practices a few years back. I admire his professional expertise in handling the sale of my practice. He always operates with my best interest at heart, as he cares deeply about his clients. He is incredibly knowledgeable and dedicated, and I can trust his tactical skills and business savvy. His understanding of the law as it pertains to healthcare is stellar. I have recommended him to my colleagues and they have all been equally pleased with his services. I so look forward to working with him again. Thank you, Mr. Kamkari! -Dr. Nazem
  
 
 
 
 
 
 
 Far Mousavi, DDS 
 
1. July, 2020.
 
 
  
My experience with Shane Kamkari has been absolutely fantastic!Mr. Kamkari has always been a great resource for my dental practice.He initially helped set up my corporation and negotiated my lease.19 years later, I cannot imagine having another business attorney. Throughout the years, he has always been a great support and is always available to go through any new business contracts or lease renewal agreements.Mr. Kamkari has always been accessible and is quick to respond to any questions and concerns that come up for me and my dental practice.He is a dedicated, trustworthy, sincere and caring person. I thank him for helping me with his expertise and advice throughout the years. I highly recommend Mr. Kamkari to anyone in need of legal services for their business!!
  
 
 
 
 
 
 
 ali sarkarzadeh 
 
14. June, 2020.
 
 
  
Mr. Kamkari is simply the best to work with. He helped me buy my practice and was on top of every little detail to make sure I would get the best deal possible. Most importantly, he always returned my calls immediately and answered any questions I had thoroughly.He is definitely the person to turn to if you wanna buy or sell your practice. Thank you Shane for being the best and always looking out for your client's best interest.A very happy client (Ali)
  
 
 
 
 
 
 
 Salar Azad 
 
16. May, 2020.
 
 
  
Mr. Kamkari has been nothing short of superb. Between his professionalism and determination, I am confident that he is always capable of exceeding expectations. His strong work ethic has shown phenomenal results. His vast knowledge in practice sales and his calm demeanor helped me greatly to eliminate the inherent stress involved in the process. Without his suggestions, I believe that I would have been pulled into a really bad deal.
  
 
 
 
 
 
 
 ani cherot 
 
29. October, 2019.
 
 
  
I feel lucky to have worked with Shane during the purchase of my Dental practice six months ago. He is very professional, knowledgable, and responds right away to any questions or issues. He is easy to communicate with and certainly made the entire buying process less stressful. I recommend his services to anyone looking for an attorney.
  
 
 
 
 
 
 
 
 
 Google rating score: 5.0 of 5, based on 6 reviews