DENTAL TRANSITIONS
A dental transition is the process of transferring ownership or management of a dental practice from one individual or group to another. This transition can take various forms, including:
- Buying a dental practice – A dentist purchases an existing practice from the current owner.
- Selling a dental practice – The current owner transfers ownership to another dentist or an investment group.
- Merging practices – Two or more dental practices combine to form a single entity.
- Partnership or associate buy-ins – An associate dentist buys into an established practice, gaining partial ownership.
- Succession planning – Ownership transitions to a successor, often a younger dentist, as the current owner prepares for retirement.
Dental transitions require careful planning and coordination to ensure a smooth handover of the business, including managing legal, financial, and operational aspects, while avoiding disruptions in patient care and daily operations. Transition specialists—such as attorneys, accountants, and consultants—are often involved to guide practice owners through the process.
Prestige Law Office provides dental professionals with the legal expertise and tools needed to successfully buy or sell their practices. The firm also offers ongoing legal counsel after the transaction.
Navigating a dental practice transition requires specialized knowledge. Buying or selling a dental practice is distinct from other types of business acquisitions, and Prestige Law Office will ensure your interests are protected throughout the entire process.
THE NEED FOR SPECIALIZED AGREEMENTS IN DENTISTRY
In the dental industry, standard business purchase agreements often fail to address the unique needs of dentists. Whether you're buying or selling a dental practice, it's essential to have a written, enforceable contract that fully protects your interests.
LEGAL CONSIDERATIONS IN DENTAL ACQUISITIONS
When buying or selling a dental practice, there are several key legal aspects to consider in order to protect your interests and ensure a smooth transition. Here are some of the most important legal considerations in dental acquisitions:
Letter of Intent (LOI)
Acquiring a dental practice typically begins with the issuance of a LOI. This document, which can be either legally binding or non-binding, outlines the key terms of the proposed deal and serves as a framework for negotiations. The LOI clarifies the intentions of both parties and sets the stage for drafting a formal purchase agreement.
Purchase Agreement
The core of any dental practice acquisition is the Purchase Agreement. This legal document outlines the terms of the transaction, including the purchase price, the assets being transferred, as well as the representations, warranties, and conditions for closing.
Due Diligence
Due diligence is a critical phase in the dental practice transition process, during which the buyer thoroughly verifies the seller's representations before finalizing the sale. This process includes a comprehensive review of:
- Financial Records – Analyzing revenue, expenses, tax returns, and profitability trends.
- Patient Files – Ensuring compliance with privacy laws and assessing patient retention rates.
- Leases & Contracts – Reviewing lease agreements, equipment financing, and supplier contracts.
- Employee Agreements – Evaluating staff contracts, compensation structures, and non-compete clauses.
- Regulatory Compliance – Confirming adherence to healthcare laws, licensing requirements, and insurance policies.
A meticulous due diligence process helps mitigate risks and ensures a smooth transition for both the buyer and seller.
Assets Transfer
In a dental practice acquisition, the asset transfer entails the sale or transfer of specific assets from the seller to the buyer. These assets typically include tangible items such as office equipment, furniture, and dental tools, as well as intangible assets like patient records, goodwill, and intellectual property. The process must be carefully structured to ensure proper legal documentation, including ownership transfers for equipment, inventory, and leased properties, while ensuring compliance with regulatory requirements.
Real Estate
Dental real estate transactions differ from standard commercial real estate deals, requiring specialized considerations such as zoning regulations, tenant agreements, and infrastructure for dental equipment. Prestige Law Office understands these complexities and provides legal services tailored to the unique needs of dental professionals.
We provide full support for all aspects of real estate transactions related to dental office buildings, including:
- Purchasing Dental Office Buildings – We review and negotiate purchase agreements to ensure the terms protect your interests and accommodate your practice's needs.
- Selling Dental Office Properties – From preparing the property for sale to closing the deal, we guide you through the process smoothly while maximizing your return.
- Office Leasing – Whether negotiating a new lease or transferring an existing one during a practice sale, we ensure the lease terms align with your business objectives.
- Zoning and Compliance – We help ensure your office meets all local zoning laws and regulatory requirements, preventing costly complications.
- Real Estate Due Diligence – Conducting thorough reviews of property records, environmental factors, and potential risks to safeguard your investment.
- Shared Office Agreements – Assisting with space-sharing arrangements to maximize flexibility while maintaining clear boundaries and responsibilities.
- Tax Implications and Planning – Coordinating with tax advisors to structure transactions in a way that minimizes tax liabilities.
Practice Valuation
An essential part of the acquisition process is valuing the dental practice. The dental transitions attorney at Prestige Law Office works closely with dental-specific CPAs and valuation experts to provide a comprehensive analysis of the practice's worth. This valuation considers financials, market conditions, and qualitative factors such as goodwill and brand recognition, ensuring that you make informed and sound investment decisions.
Closing
The closing process is where all aspects of the acquisition come together. The dental transitions attorney at Prestige Law Office will review all purchase contracts, employment agreements, and related documents to ensure every detail is in order and your interests are fully protected.
Post-Acquisition Legal Counsel
Even after the acquisition is complete, the dental transitions attorney at Prestige Law Office can provide ongoing legal counsel to address any post-acquisition issues, such as drafting buy-sell agreements, reviewing changes to ownership structure, and ensuring continued legal compliance.
Prestige Law Office provides the following dental law services:
- Dental Practice Transitions
- Purchase Agreements
- Partnership, Operating, and Shareholder Agreements
- Associate Buy-Ins
- Business Formations
- Partnership Disputes
- Confidentiality Agreements and NDAs
- Estate Planning and Asset Protection
Prestige Law Office handles dental transitions across Milwaukee, Waukesha, Kenosha, Racine, Washington, Dane, and Ozaukee counties, as well as throughout the state of Wisconsin. Let the firm help you navigate your business needs. Contact Prestige Law Office today to schedule a consultation and take the first step toward securing your future.