Buy-ins & Buyouts
Shareholder and Operating Agreements define the relationship among the owners of the practice. It is critical to define the events which lead to stock/membership transfers, the methodology by which the practice should be valued, governance and related issues. The key issues include:
- The terms and conditions under which the stock can be transferred in the event of the death, disability, retirement, termination or resignation of a stockholder.
- The practice's value. This may include stock, accounts receivable, goodwill and other assets.
- The practice management structure and how major decisions will be made.
Failure to have agreements or the use of ambiguous language often creates hostility and can lead to legal action.
Let us assist you in navigating the process of developing the business terms of your relationship.