Buying or selling a dental practice is one of the most significant transactions dentists will make during their careers. The financial stakes are high, the regulatory environment is complex, and the details embedded in purchase agreements, lease assignments, and employment contracts can have consequences that last for decades.
Kimberton Law provides legal counsel to dental professionals facing practice transitions and the full range of business law matters that arise throughout the life of a dental practice. Contact us to learn more about our services for dental professionals in the Phoenixville and West Chester region.
Dental Practice Transitions
Dental practice purchases and sales involve far more than agreeing on a price. The structure of the transaction such as whether it proceeds as an asset sale or a stock sale has significant implications for tax exposure, liability, and the transition of patient relationships. Each approach carries distinct advantages and risks depending on whether you are the buyer or the seller, and it is necessary to understand those distinctions before signing anything.
Due diligence in a dental practice transaction requires a careful review of existing patient contracts, vendor agreements, equipment leases, real property leases, and any outstanding regulatory or employment matters. Buyers need to understand exactly what they are acquiring and what obligations they are assuming. Sellers need to ensure that the transaction terms protect them after the deal closes, including through appropriate representations, warranties, and non-compete provisions.
Kimberton Law assists dental professionals on both sides of practice transitions, ensuring that transactions are properly structured and that all material terms are reviewed before a client commits.
Leases and Facility Agreements
For most dental practices, the office lease is one of the most consequential documents in the business. Lease terms, renewal options, assignment clauses, and personal guarantee provisions all warrant careful review. When a practice is being purchased, the assignment of the existing lease (or the negotiation of a new one) is often a central piece of the transaction.
Kimberton Law reviews and negotiates dental office leases, understanding how those terms interact with the broader practice transaction.
Employment and Associate Agreements
Associate agreements, partnership tracks, and non-compete clauses are recurring sources of disputes in dental practices. Whether a dentist is bringing on an associate, entering into a partnership arrangement, or separating from an existing practice, having clear and enforceable agreements in place from the outset reduces the risk of costly disputes later.
Entity Formation and Business Structure
Dental professionals who operate without the right business structure may expose their personal assets to liability, create unnecessary tax burdens, and limit opportunities for growth and succession planning. Kimberton Law advises on entity selection, helping practitioners understand the liability and tax implications of their chosen structure.
Counsel for Dental Professionals in Chester County
Kimberton Law in Phoenixville and West Chester understands the business of dentistry and the legal issues that arise at every stage of a dental professional’s career. To discuss a practice transition, lease review, or other dental business matter, contact Kimberton Law at (484) 564-6529 or via our online contact form.
