Buying a Dental Practice
Dental Transition Lawyers for Buying Dental Practices
The obvious initial considerations in buying dental practices may be the purchase price and the location of the practice. However, as experienced dental transition lawyers in dental acquisitions, we recommend that you also consider the trajectory of the gross revenues that were generated and collected in the recent years, the percentage of revenues that are generated from pay-for-services patients versus patients from insurance companies, the employee retention rate, and the potential future growth or lack thereof. This is not an exclusive list of the factors that a dental practice buyer should consider and is just only a starting point for a dentist who is considering buying a dental practice.
Aside from the business and practical factors that you should consider before buying a dental practice, you should also consider a well experienced and business savvy dental transition attorney who can help you negotiate the purchase price, have the proper binding and non-binding terms in your letter of intent, is skilled in drafting your purchase agreement, knows how to properly conduct due diligence and how bulk sales law affect your transaction, and understands the effects of timely insurance credentialing or lack thereof. All of these could make the difference whether after your dental acquisition your practice will be on the right path to success.
For additional information regarding the various aspects of buying a dental practice, i.e., letters of intent, whether your purchase should be structured as an asset or stock purchase, due diligence to check for any transfer of liabilities, and the Closing for transactions in dental acquisitions please visit our FAQ page.
Do not run the maze of LOIs, APAs, due diligence, requirements of bulk sales law, etc. when buying dental practices. Our experienced dental transition lawyers can provide you with stellar representation to conduct and complete your transaction from A-Z so you can practice with confidence.
CLICK HERE to Book Your Consultation with our Dental Transition Lawyers if you are considering buying a dental practice. Or reach us direct at (301) 309-9002
Protection Against Liability When Buying a Dental Practice
Protection against past liabilities is a much more important consideration for buyers than sellers in transactions for dental transitions. That is particularly why you should be well represented by experienced dental transitions lawyers throughout the process. If your transaction is not properly structured and due diligence is not properly conducted, you may realize too late that there are judgments, lawsuits, and past liabilities that are now transferred to you and/or your practice. There are also bulk sales laws that if not properly handled could result in transfer of debts from the seller and/or seller’s company to you and/or your company. Therefore, the right structure should be chosen, your purchase agreement should be properly negotiated, due diligence must be “diligently” conducted, and all steps and laws should be adhered to, in order to avoid the transfer of past liabilities, debts, judgments, and/or liens from the seller to you as the buyer of the practice. If these steps are properly handled, then the Closing date becomes the cutoff date for past liabilities, and you will not be liable for past liabilities. As additional back up, you should have an indemnification clause whereby the seller will have to indemnify you for any debts, judgments, liens, and/or other liabilities that may be discovered after the Closing.
CLICK HERE to Book Your Consultation with our Dental Transition Lawyers if you are considering buying dental practices. Or reach us direct at (301) 309-9002
Tax Consequences When Buying Dental Practices
Buyers should also be aware of substantial tax consequences (and how to best avoid or minimize them) that could result from the allocation of the purchase price. Negotiating the purchase price is only the starting point of negotiations, not the end. An attorney who is not experienced in these types of transactions could make mistakes that will result in substantial tax consequences for you. Aside from the financial and legal benefits that you gain from retaining our experienced Dental Transition Lawyers, our experiences and knowledge could make the difference between putting your practice on the path to success or failure.
As experienced dental transition lawyers, we have the experience and know-how to provide you with stellar legal representation in negotiating your purchase price, the terms of your contract, and maximizing your protection under the law to set up your new practice for success.
For additional information regarding the Closings in dental transitions please visit The Closing in Dental & Medical Practice Transitions – Healthcare Lawyers (dentalmedicalattorney.com)
You can also find additional information regarding the documents that are exchanged at Closings of dental transitions at Documents for the Closing – Dental Medical Practice Attorneys (dentalmedicalattorney.com)
CLICK HERE to Book Your Consultation with our dental Transition lawyers if you are considering buying a dental practice. Or reach us direct at (301) 309-9002
Kamkari Healthcare Law
A. Shane Kamkari, Esq.
Dental Transition Lawyers
Buying a Dental Practice