There are many considerations that go into buying a dental practice. Contingencies are some. When you find the right practice for your needs, you will have an Asset Purchase Agreement that is necessary to close on the practice. In that document, there will be a section where contingencies to close on the sale are located. It is imperative that you take the time to review those contingencies.
Should these contingencies not be met, then you may be able to leave the contract without liability. This puts the seller in a position where they cannot be confident that the sale will go through, and as a result, there may be some drawbacks. It is imperative that you understand what is needed to purchase a dental practice in California. For help going through the paperwork and documentation and for finding the perfect practice for your needs, the Los Angeles practice purchase attorney at the Leiva Law Firm can help.
How Contingencies in Dental Practice Purchase Agreement Can Affect a Prospective Buyer
As a buyer, you have obligations that must be met before the sale will be finalized. One is taking the extra time and effort and due diligence to look into the practice books that you are interested in buying. There is only a limited time to do this extra investigation and if you miss the end date, unless the seller agrees to allow you more time, you may not be able to get the extra information that you need to assess the financial stability of the practice.
In addition to you evaluating the practice, the seller will want to know you have the funds to actually buy it. This will require you to have bank approval for financing. It is a good idea to get preliminary financing approval before you go into negotiations because there once you are ready to buy, it takes a bit of time before you can get that approval. This may impact when you close. In addition to showing you can purchase the practice, you may also have to show you can get a lease which is not always an easy task for dental practices.
Ideally, when you find a practice that works for your objectives purchasing it should go off without too many issues arising. To increase the chances that this will happen, there are things that are the buyer’s responsibility. If they are not fulfilled, this could cause the closing date to be delayed and it could also impact your ability to obtain payment for the work you do after closing.
Work with a Los Angeles Dental Practice Acquisition Attorney
When you are ready to make the move to purchase your own dental practice in California, the experienced Los Angeles dental practice acquisition attorney is here to assist you and put you in the best position possible. Buying a practice and starting it with the utmost confidence is critical. For more information, you can call Leiva Law Firm at (818) 519-4465 to schedule a free consultation.