Purchasing a Dental Practice: Legal Protection
THE NEXT DDS
Learning Objectives:
After hearing this podcast, the listener should:
- Understand
legal and practical risks involved with purchasing a pre-existing dental
practice
- Know
the advantages that a purchase agreement can provide, and be able to use
phrasing the make sure they are fully protected by their agreement
The purchase of a dental practice necessarily involves risk,
including practice liabilities that may not be apparent until after closing.
Undisclosed lawsuits, judgments, and debt could sink a practice unless
identified and addressed prior to closing. A seller may also withhold knowledge
of information potentially adverse to a practice. The purchase agreement forces
a seller to disclose practice liabilities by means of representations and warranties
concerning the practice, while a “survival” clause ensures that the seller
stands by these representations even after closing.
Related Reading:
- http://www.aaid-implant.org/uploads/cms/documents/practice_management_selling_or_buying_a_practice_part_2.pdf
- http://www.ppcloan.com/Dentist/Articles/What_is_A_Dental_Practice_Worth/
- http://www.dentistlawyers.ca/asset-purchase-agreement-template/17/
- http://www.dynamiclawyers.com/dental-lawyer-toronto-part-3-asset-purchase-agreement-terms-and-conditions/28/
- http://www.ddsmatch.com/Successfully-donnecting-dentist_Practice-Transitions-The-Role-o.blog&Sort=Date
- http://www.dmpractice.com/652351.html