Purchasing a Dental Practice: Legal Protection
THE NEXT DDS
After hearing this podcast, the listener should:
legal and practical risks involved with purchasing a pre-existing dental
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.