Owning your own dental practice may be your goal once you leave dental school. However, doing so is something that is not as easy as just searching for a space and opening up an office. Through an associate buy-in, you may gain much more than an investment in a practice, but a pathway to running your own business.
A dental associate’s buy-in can be beneficial to all parties involved. For dental practice owner, a junior associate may bring about many positive advantages. With the investment made by the junior dentist and their motivation to work on making the dental practice a success, expanding a dental practice can be a more realistic option on the table. Additionally, when the practice owner is ready to retire or should they become incapacitated, the associate can easily transition in and fill the void keeping the practice going.
Despite the positive aspects for both the dental associate and the dental practice owner, it cannot be understated that this relationship must be a true partnership in order for it to be successful. Both parties have to take their commitment to the practice seriously, be able to work well together and have respect for each other. This is why when it comes to the partnership agreement, all expectations and needs must be met and agreed to by each party.
It is essential that both parties have a lawyer representing their interests and providing sound legal counsel throughout the process. A Los Angeles associate buy-in attorney at Leiva Law Firm can assist you with understanding your associate buy-in agreement and helping you be successful with the associate buy-in process.
Using an Associate Buy-In to Become a Dental Practice Owner
Through the associate buy-in process, you could be the future successor to the California dental practice you invest in. With time, you may continue running the practice.
Being a junior associate means that you get to work and learn under an experienced practitioner. As a result, an associate can reap the benefits of valuable lessons in both practicing as a dentist and related to running a practice. A junior dentist can become a more proficient dentist as well as an astute business owner under such mentorship. This means that when it is time for the junior dentist to continue within the same practice and eventually take it over, they will have a keen understanding of how everything works and be uniquely positioned for continued success.
An associate will typically buy a minority interest in the dental practice. This usually is not more than 20% and for good reason. First, it allows each party to see if their partnership will work out in the long term. Should a partnership not work out, a smaller steak in the practice makes it much easier to dissolve the partnership than if an initial large investment was made. An associate buy-in that does work will have an agreement made on what happens when it is time for a buyout of the dentist owner’s remaining interest.
Speak to an Attorney at the Leiva Law
For help with a dental associate buy-in agreement please call Leiva Law at (818) 519-4465 to schedule a free consultation.