Avoiding Common Legal Pitfalls in Dental Practice Acquisitions
Jun 19 2024 0

Avoiding Common Legal Pitfalls in Dental Practice Acquisitions

Dental practice acquisitions are typically intricate and can also be overwhelming. There are many aspects to take into account when entering into these sorts of agreements in Los Angeles. However, taking the time to understand what to expect and common legal pitfalls to avoid can help the process move along much more smoothly and with the least stress. Both buyers and sellers have several considerations to ensure that their best interests are protected and that the transition into retirement, onto a prosperous professional career, or embarking on new opportunities is successful.

Buying or selling a dental practice can be a life-changing move. To ensure that you are best positioned for optimal results, having the assistance of an attorney can be advantageous. The Los Angeles dental practice purchase agreement attorneys at Leiva Law Firm can help you draft a dental practice purchase agreement that is detailed and comprehensive. When you work with the Leiva Law Firm, you will have support and guidance throughout the process to clearly understand your rights and responsibilities with the dental acquisition.

Legal Pitfalls to Avoid During Dental Practice Buying and Selling

Avoiding Common Legal Pitfalls in Dental Practice AcquisitionsIf you are selling, putting time into the process is critical. Gathering and organizing records and sales reports, properly valuing your dental practice, and more are all important so that opportunities are not missed, and the right buyer is selected. When you are prepared, it will show. That can allow for a greater pool of qualified buyers, and those buyers can have greater confidence in the acquisition.

Entering into a letter of intent (LOI) can allow for more transparency in a sale between the buyer and the seller. In a LOI, each party can outline the preliminary agreements. Through a LOI, which is not a legally binding contract, the time and effort each party has to come to agreeable terms may be minimized, and this can pave the way for making it much easier when it is time to start costly contractual negotiations. Taking this initial step before negotiations mentally commits all parties, takes a lot of the unknown out of negotiations, reduces stress, and can increase the chances that a final deal will be successful.

Knowing the value and potential of a practice means engaging in adequate due diligence. To mitigate the possibility of legal problems down the road, a buyer should assess the practice’s assets and liabilities, financial statements, inventory, leases and related contracts, insurance policies, and employment agreements, and also search to see if there are any liens against the practice.

If a practice is being purchased in a leased location, it is imperative to have a copy of the current lease and inspect the terms. Perhaps the current lease has acceptable and favorable terms along with renewal rights. Or, if the lease terms are not satisfactory, a buyer should proactively connect with a landlord and begin negotiating for a new lease.

Buyers should discuss the post-closing plan. The seller’s intentions after a sale should be noted, and then a reasonable, mutually beneficial restrictive covenant can be negotiated. This can lessen the risk of future misunderstandings that may turn litigious.

Speak to an Attorney at Leiva Law Firm Today

For assistance with a dental practice acquisition in California, please call the Leiva Law Firm at (818) 519-4465 today or complete our online intake form to schedule a free consultation with our experienced Los Angeles dental practice purchase agreement attorneys. 

 

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