Before you sell or close your thriving dental business, you need to develop and implement a solid exit strategy.
This is even more important if you are retiring from the workforce entirely. A good exit strategy can ensure a relaxing retirement, but a poor one can hinder your retirement and cast a dark cloud on what should be your golden years.
Thankfully, a dental lawyer from Mahan Law can help you create the ideal exit strategy for your circumstances. We serve dentists nationwide, so contact our law firm today to schedule a consultation with an experienced dental attorney.
Do you own your practice alone or have partners?
This is one of the most important questions to ask when trying to exit ownership of a dental practice. If you are a solo owner, exiting is reasonably easy. You will have to file some paperwork to dissolve your business, and you will have to resolve any outstanding debts, but otherwise, closing down the business is relatively painless.
However, if there are other owners, you must determine what to do with your stake in the business. The main options are to sell it to one or more of the current owners, hold onto it (continuing to incur debts and gain income as a non-practicing owner), or sell it to a new partner who joins the practice in your place.
These are not decisions that should be made independently. Talk them over with your partners and discuss all financial implications with an experienced dental practice consulting lawyer from Mahan Law.
Selling the Practice or Letting Someone Replace You in a Partnership
If you choose an option that involves having another dentist take over your practice, there will be a lot of paperwork. You need to pass along all ownership — including, most likely, the right to use your client lists and possibly the name of your practice.
When you consult with an experienced attorney from Mahan Law, they can make this transition go smoothly and help you determine the value of your practice when selling.
Consider Your Patients
While you are moving on and enjoying a peaceful retirement, you might be leaving your patients in a lurch. Of course, if you are part of a practice with multiple dentists or selling your practice, your patients should be covered — just make sure to give them as much warning as possible, and let them know that they will be well taken care of once you are gone.
But what if you are just closing shop and there is no one to replace you? In this case, you should talk to other dentists in the area and let them know you are retiring. Ask them if they can take new patients, and give your current patients a list of options when you leave.
Do you own the building where you work?
The final major consideration when exiting a dental practice is the physical location of your practice. Unless you work out of your home, there is a building that needs to be accounted for.
If you rent the building, this means you just need to end your rental contract. Hopefully, you have planned far enough in advance that you will not be mid-contract when you retire. Otherwise, you might be required to pay out the remainder of the contract. The better option is to give your landlord advance notice and switch to month-to-month for the end of your time.
If you own the building, you will need to sell it. This means that along with a dental attorney from Mahan Law, you should also hire a real estate agent to help with the arrangements as soon as you decide to retire.
How a Dental Practice Attorney From Mahan Law Can Help
Whether you are selling your practice, closing it, or leaving a partnership, there are several legal and financial ramifications that come with exiting a dental practice. If you are not careful, the process can quickly become overwhelming and confusing.
Thankfully, a dental attorney from Mahan Law will guide you through the process and explain your legal options every step of the way.
We have the experience and skills to help you:
- Find trustworthy buyers for your practice or building
- Manage your IP and patient lists when passing them on to the new owner
- Negotiate a buyout of a partnership contract
- File paperwork with the local or state government to officially close your practice
- Consult on tax implications that come with the sale of real estate or a business
- Ensure your retirement fund does not fall afoul of the IRS or other government regulations
You only retire once; make it count and do it right with an experienced dental attorney from Mahan Law.
Securing Powerful Exit Strategies With Mahan Law
The legal and tax consequences of retiring from a thriving dental practice can be significant. The experienced dental practice consulting attorneys at Mahan Law help clients nationwide. We can guide you through the complex process of retiring after a long career as a dentist.
