Are you in the process of buying a dental practice? If so, congratulations! This is a major step in your career and a big investment. However, it`s important to make sure you have a solid dental practice purchase agreement in place before finalizing the sale. In this article, we`ll take a look at what a dental practice purchase agreement is and provide you with a sample to use as a guide.

What is a dental practice purchase agreement?

A dental practice purchase agreement is a legal contract between the buyer and the seller detailing the terms and conditions of the sale. This agreement is meant to protect both parties and ensure that everyone involved understands what is expected of them.

What should be included in a dental practice purchase agreement?

A dental practice purchase agreement should include the following:

1. Purchase price: The price that the buyer agrees to pay for the dental practice.

2. Assets: A list of the assets that are being sold as part of the practice, including equipment, supplies, and patient records.

3. Liabilities: A list of the liabilities that the buyer will be assuming, such as outstanding debts or legal disputes.

4. Payment terms: The payment schedule for the purchase price, including any down payment, interest rate, and balloon payment.

5. Closing date: The date on which the sale will be finalized.

6. Non-compete clause: A clause stating that the seller will not enter into competition with the buyer within a specified time period.

7. Representations and warranties: A section outlining the seller`s responsibilities to provide accurate and complete information about the practice, including financial records and patient data.

8. Contingencies: Any conditions that must be met before the sale can be finalized, such as obtaining financing or transferring licenses.

Sample dental practice purchase agreement

Below is a sample dental practice purchase agreement that can be used as a guide. It is important to note, however, that this agreement should be tailored to the specific needs of your practice. It is highly recommended to consult with a lawyer to ensure that all legal requirements are met.

[Your Company Name]

[Address]

[City], [State] [Zip Code]

[Phone]

Dental Practice Purchase Agreement

This Dental Practice Purchase Agreement (the “Agreement”) is made effective as of [date], by and between [Seller Name] (“Seller”) and [Buyer Name] (“Buyer”).

1. Purchase Price. The purchase price for the dental practice is [dollar amount], payable as follows: [payment terms].

2. Assets. The assets being sold as part of the practice include all equipment, supplies, and patient records related to the dental practice. A complete list of assets is attached as Exhibit A.

3. Liabilities. The buyer will assume the following liabilities: [list of liabilities].

4. Payment Terms. The purchase price will be paid according to the payment schedule outlined in Exhibit B.

5. Closing Date. The sale will be closed on or before [date].

6. Non-compete Clause. Seller agrees that they will not compete with Buyer within [number of years] years of the closing date of this transaction within [geographic location].

7. Representations and Warranties. Seller represents and warrants to Buyer that the information provided about the practice is true, complete, and accurate. Seller agrees to provide Buyer with access to all financial records, including patient data, and to assist in transferring licenses to Buyer.

8. Contingencies. This Agreement is contingent upon the following conditions: [list of contingencies].

9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of [state].

10. Entire Agreement. This Agreement contains the entire understanding of the parties and supersedes all prior understandings and agreements between them relating to the subject matter hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[Buyer Name]

[Signature]

[Date]

[Seller Name]

[Signature]

[Date]

Conclusion

A dental practice purchase agreement is an important legal document that protects both the buyer and the seller in the process of buying or selling a dental practice. While the above sample can be used as a guide, it is highly recommended to consult with a lawyer to ensure that all legal requirements are met and the agreement is tailored to your specific needs. By taking the time to prepare a solid dental practice purchase agreement, you can set yourself up for a successful and profitable practice.