Are you an entrepreneurial young dentist looking to further your career by joining a practice under a senior dentist or are you an established California dentist looking to expand your practice or sell it? If you fit into any one of these categories you are likely looking into associate buy-ins. Associate buy-ins have several benefits for both sellers and buyers.
If you would like assistance with a dental associate buy-in the Los Angeles associate buy-in attorney at Leiva Law Firm can walk you through the process and make sure you understand your rights and responsibilities at every step.
Steps Of The Associate Buy-in
Once the right practice is located, a budget should be reviewed to determine how much of the practice will be initially purchased. Usually, this is anywhere from 10%-20%. Doing so does a couple of things. It motivates the buyer to be invested in the practice and the business. It also allows for a reasonable transaction amount that, should the partnership not work out, makes it easier to part ways versus how complicated it would be if the initial investment was a more significant amount.
However, before a purchase is made it is vital to understand the importance of cultivating a respectful and productive business relationship. Taking the time to write a comprehensive and detailed partnership agreement is essential. Drafting such an agreement allows for all parties to sit down and go over the finite details of running the business, how to manage financials, and what will happen in a variety of scenarios. It gives all parties the ability to connect and negotiate so that a mutually agreeable contract can be made where everyone is on the same page before going into business.
When a new partner is brought into a business this is significant. It is like entering into a marriage because the health of the business will be dependent on the rapport of the business partners. As such, working together and having open communication along with an understanding of the partnership agreement are key elements of avoiding possible disputes and disruptions. This is why, while the purchase agreement is important, it is the partnership agreement that requires the most intensive negotiations and dialogue.
It is never possible to predict if your business partnership will work out, but if you put the time into taking on the tough issues that could come up and alter a relationship early on, you have a better chance of handling them should they arise down the road.
Speak to an Attorney at Leiva Law Firm Today
For established dentists, associate buy-ins in California are a great way to preserve a practice, continue care for patients, and put in place a succession plan. For junior dentists, mentorship from a senior dentist can help strengthen clinical skills while also learning the business side of running a practice. And, it makes for a smoother transition into becoming a business owner. Putting in place a comprehensive partnership agreement is critical to all parties meeting their objectives and having an associate buy-in be a success.
For help with a dental associate buy-in in California, you are welcome to call the Leiva Law Firm today at (818) 519-4465.
