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Purchasing a Dental Practice: Legal Protection

Learning Objectives:

After hearing this podcast, the listener should:

  • Understand legal and practical risks involved with purchasing a pre-existing dental practice
  • Know the advantages that a purchase agreement can provide, and be able to use phrasing the make sure they are fully protected by their agreement

The purchase of a dental practice necessarily involves risk, including practice liabilities that may not be apparent until after closing. Undisclosed lawsuits, judgments, and debt could sink a practice unless identified and addressed prior to closing. A seller may also withhold knowledge of information potentially adverse to a practice. The purchase agreement forces a seller to disclose practice liabilities by means of representations and warranties concerning the practice, while a “survival” clause ensures that the seller stands by these representations even after closing.

Related Reading:

  1. http://www.aaid-implant.org/uploads/cms/documents/practice_management_selling_or_buying_a_practice_part_2.pdf
  2. http://www.ppcloan.com/Dentist/Articles/What_is_A_Dental_Practice_Worth/
  3. http://www.dentistlawyers.ca/asset-purchase-agreement-template/17/
  4. http://www.dynamiclawyers.com/dental-lawyer-toronto-part-3-asset-purchase-agreement-terms-and-conditions/28/
  5. http://www.ddsmatch.com/Successfully-donnecting-dentist_Practice-Transitions-The-Role-o.blog&Sort=Date
  6. http://www.dmpractice.com/652351.html
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