A professional practice (dental, medical, legal, and so on) is unlike any other kind of organisation in that it is not easily transferable and it can not be owned or run by someone who is not a certified member of the profession.
This coupled with the truth that it is generally our most important earnings source, there is a fantastic need to address the unavoidable. Developing an exit method is vital, particularly one that produces worth for your family and does not leave behind partners and patients in mayhem upon your departure.
The Magic Ingredient
A Buy-Sell Contract (also called a buyout arrangement) is basically a binding arrangement in between partners (shareholders, members, partners, are utilized interchangeably here) where each consents to buy the interests of a withdrawing or deceased shareholder. The magic active ingredient to effective completion is to participate in a Buy-Sell Agreement before it appears which owner will be the first one to leave (due to death, health problem, loss of license, etc.) so that the terms are fairly negotiated among all partners not understanding whether they will be the purchasing or the selling partner. The Buy-Sell Arrangement details the buyout sets off: most normally death or impairment however it can also be triggered by retirement, divorce or termination of work by the entity. In addition, Buy-Sell Agreements establish buyout terms including cost and payment period.