Dealing With Mergers & AcquisitionsHealthcare in the United States has been an ever-changing environment, with all the laws and guidelines governing it. This also applies in selling a dental practice; there are simply a lot of rules and complexities behind negotiations and sales. You are definitely going to run into problems before signing the dotted line. So in order to avoid complications, here are some points that you need to know.

Know your plans before talking to potential partners

For starters, you need to know your plans and first. If you are planning a merger with a larger company, you need to learn what are the benefits and the red flags. This stage is extremely important: doing this will put you at an advantage and help you avoid uncertainties.

Keep in mind there is too much legal work to be done. And if you skip the stage, you wouldn’t know what the purpose is for selling or merging your practice.

Trust and transparency with your potential partner

Regardless if you’re selling your practice or merging with a larger medical group, you need to be able to earn their trust, and vice versa. This can be achieved by being fully transparent with the numbers as well as the operations concerning your practice.

Keep in mind that it is your most important asset; merging with the wrong people will definitely get you in trouble. You may even find that you were better off not merging the first place. You need to know if the organization you’re merging with is well-run.

That being said, you may need to present some documents pertaining to your practice, especially the numbers. Other than honesty on the side of the company you are negotiating with, you should be upfront with all the vital aspects regarding your practice as well.

Remember though, be sure to ask either your broker or lawyer to have you and the other party sign confidentiality agreements in order to ensure that no sensitive information leaks out. Both parties should also promise to return all documentation, if no deals are signed.

Remember, security in transactions is as important as making the deal itself.

Clear the discussions

If all the pieces of information, it’s time to discuss the smaller cogs. Some questions that need to be answered include the following:

Who will make the decisions? Me or the new group? (Merging only)

Will previous arrangements with employees be honored? This pertains specifically to earnings and expenses.

Will the new owner or the partner have the power to move the current dentists to practice their profession in another location?

Lastly, make sure that other details are ironed out

Whenever the documents are presented and the only thing needed to finish the transaction is your signature, be sure to floss out the details. Make sure that there are no vague points in the contract.

Overall, be sure that all of these aspects are five before and during the negotiations. Also, be sure to hire a broker that will help you with all the intricacies and legalities!

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