If you`re considering selling your medical practice, it`s important to have a solid agreement in place to protect your interests and ensure a smooth transition. A Sale of Medical Practice Agreement (SMPA) can provide the legal framework needed to facilitate the sale, including assigning intellectual property, transferring assets, and outlining any obligations or responsibilities.
Here are a few things to keep in mind when drafting or reviewing an SMPA:
1. Identify the parties involved. The agreement should clearly outline who is selling the practice and who is purchasing it. This may include individual doctors, medical groups, or other interested parties.
2. Define the purchase price. The purchase price should be clearly spelled out in the agreement, along with any contingencies or conditions that could impact the final price.
3. Outline the terms of payment. The payment terms should be specified in detail, including the timing of payments, the form of payment (cash, check, etc.), and any interest or penalties for late payments.
4. Transfer ownership of assets. The agreement should address the transfer of ownership of any physical assets, such as equipment, furniture, or supplies. It should also address the assignment of intellectual property rights, such as patient lists, medical records, and trademarks.
5. Address any outstanding liabilities. Any outstanding debts or obligations should be identified and addressed in the agreement. This may include unpaid taxes, outstanding medical bills, or legal disputes.
6. Set expectations for the transition period. The agreement should address any expectations or obligations for the transition period, such as training or consulting services, non-compete clauses, or other terms that may impact the seller`s ability to continue practicing.
By taking the time to carefully draft or review an SMPA, you can help ensure a successful sale that protects your financial and professional interests. If you`re not familiar with legal terms or procedures, it`s important to consult with an attorney experienced in medical practice sales to ensure that the agreement meets your needs and complies with applicable laws and regulations.