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الخميس، 9 يوليو 2015
Dentists who are practicing on their own business with a partner should consider drafting a buy-sell agreement. Since there is a partner to the practice, this agreement settles everything when one or both partners die, leave, retire, or become disabled. You can ask dental brokers Columbus Ohio for help in this matter. To have a clear understanding of this, here are things to ask the broker about.
First, better ask if this purchase is optional or if this will become required during a triggering event. For death and disability, you will most possibly want the purchase to be required during a triggering event. The exception for this purchase which will make it option would be when the partner leaves or retires from this business.
You have to ask clearly what the definition of permanent disability is. This should be a condition that is clearly spelled out in the agreement. In the case of this agreement, the best condition is when one is already disabled for 12 months and there is no clear expectations for one's return anytime soon. This is then presumed as permanently disabled.
You need to ask what is the method for establishing the price for the buying and selling. This buy-out price is actually the most difficult clause that you will have to decide on. You have to consider whether this will be determined through appraisal or if there is a predetermined formula. You and your partner must both agree to this.
The partners might have some disputes in their practice, especially with regards to some major decisions. To prevent things from possibly escalating further, it is highly recommended to cite in the agreement to have a binding arbitration for it. This will become the mechanism for resolving the disputes cheaply than going to a court of law.
Ask regarding the instances for when the partners sell partial interests of their shares. Generally, you should put a restriction on who the partner sells the shares or even just a part of it to. The said restriction on that will give the remaining partner in the practice the chance to decide who will become his or her business partner after the sale.
Ask regarding the accounts receivables, debts, and vehicles. The agreement should clearly stipulate how the accounts receivables and debts are to be handled during buy-outs. Vehicles and other stuff in practice should be distributed clearly as well. Citing these in the agreement prevents any confusion during buy-outs, which might lead to disputes later on.
You have to ask more on the payout terms. You must have a definite understanding on what the payout terms are so that the transaction becomes easier for both the parties involved. It can be in installment payments or you can have an outside lender fund the buy-out. You can also use a collateral to guarantee the buy-out.
Restrictive covenant provisions are common these days. In fact, it is highly recommended for partners to have a restrictive covenant provision in the agreement. The one who will be selling his or her share must affix his or her signature on this particular document. The restrictive covenant provision should finalize the buyout deal between the partners.
First, better ask if this purchase is optional or if this will become required during a triggering event. For death and disability, you will most possibly want the purchase to be required during a triggering event. The exception for this purchase which will make it option would be when the partner leaves or retires from this business.
You have to ask clearly what the definition of permanent disability is. This should be a condition that is clearly spelled out in the agreement. In the case of this agreement, the best condition is when one is already disabled for 12 months and there is no clear expectations for one's return anytime soon. This is then presumed as permanently disabled.
You need to ask what is the method for establishing the price for the buying and selling. This buy-out price is actually the most difficult clause that you will have to decide on. You have to consider whether this will be determined through appraisal or if there is a predetermined formula. You and your partner must both agree to this.
The partners might have some disputes in their practice, especially with regards to some major decisions. To prevent things from possibly escalating further, it is highly recommended to cite in the agreement to have a binding arbitration for it. This will become the mechanism for resolving the disputes cheaply than going to a court of law.
Ask regarding the instances for when the partners sell partial interests of their shares. Generally, you should put a restriction on who the partner sells the shares or even just a part of it to. The said restriction on that will give the remaining partner in the practice the chance to decide who will become his or her business partner after the sale.
Ask regarding the accounts receivables, debts, and vehicles. The agreement should clearly stipulate how the accounts receivables and debts are to be handled during buy-outs. Vehicles and other stuff in practice should be distributed clearly as well. Citing these in the agreement prevents any confusion during buy-outs, which might lead to disputes later on.
You have to ask more on the payout terms. You must have a definite understanding on what the payout terms are so that the transaction becomes easier for both the parties involved. It can be in installment payments or you can have an outside lender fund the buy-out. You can also use a collateral to guarantee the buy-out.
Restrictive covenant provisions are common these days. In fact, it is highly recommended for partners to have a restrictive covenant provision in the agreement. The one who will be selling his or her share must affix his or her signature on this particular document. The restrictive covenant provision should finalize the buyout deal between the partners.
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You can get a detailed summary of important factors to consider when choosing dental brokers Columbus Ohio area at http://practiceendeavors.com right now.
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