An expert practice (dental, medical, legal, etc.) differs from any other kind of company because it is not easily transferable and it can not be owned or run by someone who is not a certified member of the occupation.
This paired with the fact that it is usually our most important earnings source, there is a great requirement to deal with the unavoidable. Establishing an exit method is vital, particularly one that creates worth for your family and does not leave behind partners and patients in chaos upon your departure.
The Magic Ingredient
A Buy-Sell Agreement (also referred to as a buyout agreement) is essentially a binding arrangement in between partners (investors, members, partners, are utilized interchangeably here) whereby each accepts buy the interests of a withdrawing or departed shareholder. The magic ingredient to effective completion is to participate in a Buy-Sell Contract 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 worked out among all partners not knowing whether they will be the purchasing or the offering partner. The Buy-Sell Contract outlines the buyout triggers: most typically death or disability but 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.