A professional practice (oral, medical, legal, etc.) is unlike any other type of company in that it is not easily transferable and it can not be owned or operated by someone who is not a certified member of the occupation.
This paired with the reality that it is typically our most valuable income source, there is a great need to attend to the inevitable. Developing an exit method is necessary, specifically one that develops value for your family and does not leave partners and patients in chaos upon your departure.
The Magic Ingredient
A Buy-Sell Contract (likewise referred to as a buyout agreement) is essentially a binding arrangement between partners (investors, members, partners, are used interchangeably here) where each consents to acquire the interests of a withdrawing or deceased investor. The magic active ingredient to successful completion is to get in into a Buy-Sell Agreement before it appears which owner will be the first one to exit (due to death, disease, loss of license, and so on) so that the terms are fairly worked out among all partners not knowing whether they will be the buying or the offering partner. The Buy-Sell Agreement outlines the buyout triggers: most usually death or special needs but it can also be set off by retirement, divorce or termination of work by the entity. In addition, Buy-Sell Agreements develop buyout terms including price and payment period.