Dr. Associate had worked for Dr. Owner for several years, and Dr. Owner’s practice had grown. Both dentists decided it was time to join forces as owners and grow things even more. It was difficult for Dr. Owner to give up control, and the two decided that for a few years, Dr. Owner should own 51% and manage the practice, while Dr. Associate would own 49% and learn under her tutelage. An evaluation of the practice was done and a purchase price was agreed to.
The key negotiation points were about the limited liability company operating agreement and which issues were in the full control of Dr. Owner versus those that would require agreement between Dr. Owner and Dr. Associate. With our counsel, the doctors came to an agreement on key points. From our engagement until Closing, the transaction took about six weeks. Drs. Owner and Associate (now Dr. Owner #2) are growing their practice and have hired a new Dr. Associate (#2)!