A buy-sell agreement is a legally binding contract between dental practice owners that dictates how ownership interests are transferred if a "triggering event" occurs. Think of it as a "business prenuptial agreement" that ensures the practice stays in the hands of people you trust. Why Your Practice Needs One Now
Without an agreement, a deceased partner’s share might pass to a spouse or family member who has no dental experience, creating a financial stalemate. dental practice buy sell agreement
The practice itself buys and owns life/disability policies for each partner and handles the buyout. A buy-sell agreement is a legally binding contract
A robust agreement should be drafted by a specialized dental attorney and include: The practice itself buys and owns life/disability policies
It establishes a clear valuation mechanism so departing owners or their families receive fair compensation without a legal battle.
It prevents the "forced sale" of the practice and reassures patients and staff that operations will remain stable. Common "Triggering Events"
The agreement typically activates when a partner experiences: