I’ve Sold or Purchased My Dental Practice, Now What?
The close of the dental practice transaction does not necessarily mark the end of the transition process. Naturally, buyers want to retain patients and, sometimes, sellers simply aren’t ready to retire. Either way, a post-sale agreement to enable a seller to work-back in the dental practice can be a perfect way to address both concerns.
Your dental attorney will provide advice about the best form of such seller work-back – either as an employee or independent contractor. There are both legal and tax consequences that accompany both forms of “employment.” Then, your attorney will assist with negotiations and will draft the agreement to assure client protection and provide a structure that will serve both buyer and seller well so their relationship is maximized and optimal patient care/experience remains the main focus of the practice. The seller work-back arrangement should be a win-win for both parties and, ultimately, the practice.
Note: It is not unusual for it to be challenging for a former-owner-dentist to accept the new-owner-dentist’s practice management techniques and approaches to patient treatment (especially where the former-owner-dentist owned the practice for many years and established a “bond” with their patients). As a consequence, it may be necessary for the parties to amicably go their separate ways. It will be important for the work-back agreement to include terms to facilitate the smooth transition of the former owner dentist while preserving patient loyalty to the practice.
COFO provides dental & medical legal services throughout Northern California.