From Hy's Desk: Lawyers - Friend or Foe?

Two major mistakes I see dentists make, on a regular basis, are: 1. Not using an attorney for the legal services and advice they can provide and; 2. Using an attorney that tries, as an advocate of the client, to protect the client at all costs.

I have seen many deals collapse because lawyers got involved after an agreement between the parties was reached and one of the lawyers began to re-write or re-negotiate that agreement. This reopened the transaction which resulted in two parties ending up spending a lot of money to get nothing in return except bad feelings and big bills.

Besides the advice in the following article, I suggest a couple of things:

1. Choose an attorney that has frequently worked with dental contracts and dental transactions. (We can help - we know who is good.)

2. Advise the attorney that you are making the business decisions and that he/she is to advise you of any legal, tax, or business issues that may impact the transaction, but that you will be making the ultimate decisions.

3. Request that they DO NOT re-write the contract or try to re-negotiate the terms and conditions. There is an innate “Pride in Authorship” mentality with some attorneys that can be very expensive to you.

Remember, “The most expensive attorney you can engage is a cheap lawyer.”

Hy Smith, MBA
Managing Member
ADS Florida, LLC

Mar-10-08 Randy Daigler: Sophisticated Buyers Want Practice Information

Today’s buyers are far more sophisticated than their predecesors.  This drives the need for sellers to be aware of what buyers want to see when they are looking at a practice.  This includes both the physical practice itself and just as important, the statistics that tell the accompanying story.  A word to the wise, while confidentiality is important, providing the right “inside” information will not be as scary or risky if you have a confidentiality agreement signed by prospective buyers. 

 

Being able to provide and format the information can enhance the sale of a practice.  Information needs to be presented in a cohesive manner with complete figures in a readable and digestiable manner, at one time rather than piece-meal.  A buyer can review the information independantly and with their advisors.  This type of presentation reflects well on the practice as the manner in which it runs.  Buyers like a clear picture of the practice performance.  It also creates a better rapport between the doctors. 

 

Most of us are somewhat protective our individual financial situation.  Practice sales fly in the face of what may seem comfortable.  Experience shows that well informed buyers more readily make a stronger offer that more closely reflects the asking price.  The correct information highlighting expenses, net cash flow and the appropriate practice reports increases the likelihood of a good sale for the seller and a strong realistic beginning for the buyer.  Both parties are better served by “knowing the numbers.” 

 

 

Randy Marie Daigler

Transition Manager

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