An expert practice (dental, medical, legal, and so on) is unlike any other kind of business in that it is not freely transferable and it can not be owned or run by someone who is not a licensed member of the profession.
This coupled with the fact that it is normally our most valuable earnings source, there is a fantastic requirement to attend to the unavoidable. Establishing an exit method is vital, specifically one that develops value for your family and does not leave behind partners and clients in chaos upon your departure.
The Magic Ingredient
A Buy-Sell Agreement (also referred to as a buyout contract) is basically a binding arrangement between partners (shareholders, members, partners, are used interchangeably here) where each agrees to acquire the interests of a withdrawing or deceased investor. The magic component to successful completion is to enter into a Buy-Sell Arrangement prior to it is apparent which owner will be the very first one to leave (due to death, health problem, loss of license, etc.) so that the terms are relatively negotiated amongst all partners not knowing whether they will be the buying or the offering partner. The Buy-Sell Contract outlines the buyout sets off: most normally death or disability but it can also be triggered by retirement, divorce or termination of work by the entity. In addition, Buy-Sell Agreements develop buyout terms including price and payment period.