In Part 1 of our post exploring transitional issues in selling and buying a practice, we examined the role that credentialing, staff licensing issues, and medical records custody each play in ensuring a smooth and efficient sale of a practice. In Part 2 of our series we examine certain post-closing matters that are critical for all buyers and sellers, and which should be negotiated and spelled out in the Purchase Agreement.
Growing a practice requires years of relationship building and providing quality care. Selling a practice is the culmination of those efforts and can often provide financial security upon retirement. Purchasing a practice is a major investment of time and money for buyers and often results in buyers becoming business owners for the first time in their professional careers. While selling a practice relieves the seller from the day-to-day operation of running a business, and purchasing a practice empowers providers to control their own professional careers, buyers and sellers should be mindful of a number of issues relating to the transition the practice between the parties—issues that can give rise to legal liability and unforeseen expense if not addressed prior to the sale.