What’s Involved in Selling My Dental Practice?
by: Peter Cusimano
Lawyer - Barrister & Solicitor
Jurisdiction: Ontario (Canada)
Selling your dental practice will involve numerous steps to be properly completed. In order to ensure a smooth transition and to avoid any delays or unexpected problems, it is advisable to engage the services of a lawyer to assist with the legal aspects of the sale of your dental practice.
Some of the legal steps involved will include:
- co-ordination with the lawyer for the purchaser
- if you have a dentistry professional corporation, ensuring the corporation’s minute book and records are up to date
- reviewing and assisting in the preparation of a proposed Letter of Intent
- reviewing and assisting in the preparation and finalization of the Agreement of Purchase and Sale
- preparation certain documents that will be required to be given to the purchaser on the completion of the sale
- dealing with certain issues such as Associate Dentists and staff
- addressing any issues such as the removal/discharge of any liens that have been registered by equipment financing companies, banks, or other third party lenders
- obtaining an assignment/transfer of the lease for the premises where the practice is located
- ensuring the purchaser files any documents that are required to be filed after the completion of the transaction (such as updating of corporation’s official records filed with the government if required, or changing the name of a dentistry professional corporation if required)
- dealing with any matters that are to be dealt with after the completion date
In addition, your lawyer will also need to be in contact with various parties including:
- the lawyer for the purchaser
- the dental practice broker
- your banker
- your accountant
- your landlord
- your insurance broker
- other third parties as required
In my law practice, I deal with dentists on a regular basis. If you are contemplating selling your dental practice, please feel free to contact me to discuss your dental practice.
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About the author: Peter Cusimano practices Business Law in Toronto, Ontario, Canada. Visit Peter Cusimano’s online Business Law Resource Center for concise answers to many more frequently asked business law questions, and more at Law Office of Peter Cusimano. The information on this page is for discussion purposes only. It is by no means legal advice or even a statement of the law on this subject. Please do not rely on the accuracy or completeness of this information. Any question or concern elicited by the information on this page should be taken to a lawyer who will consider the facts of each case and the legal remedies available. |