Congratulations! You've decided to join forces with a fellow dental professional and open a practice together. An exciting venture, but before you start scheduling patients, a crucial step is establishing a strong partnership agreement.


Here at Jacobs Legal dental solicitors, we understand the importance of clear communication and defined roles within a dental partnership.


Benefits of a Partnership Agreement:

  • Clarity & Transparency: A well-drafted agreement outlines the rights, responsibilities, and financial arrangements of each partner. This clarity prevents confusion and potential disputes down the line.
  • Defined Roles & Decision-Making: The agreement specifies areas of responsibility for each partner, ensuring everyone understands their role and how decisions are made within the practice.
  • Financial Structure: The agreement clearly outlines profit and loss sharing, capital contributions, and how expenses will be handled. This avoids financial disagreements in the future.
  • Conflict Resolution: The agreement can establish a framework for resolving any conflicts that may arise between partners, minimizing disruption to the practice.
  • Exit Strategy: An exit strategy clearly defines what happens if a partner wishes to leave the practice, protecting both parties and ensuring a smooth transition.

Key Considerations in Your Agreement:

  • Partnership Type: There are different partnership structures (e.g., profit-sharing, expense-sharing). Choose the one that best suits your situation and clearly define it in the agreement.
  • Financial Contributions & Ownership: Specify how initial investments and ongoing financial contributions will be handled, along with ownership percentages.
  • Management & Responsibilities: Outline each partner's responsibilities in areas like clinical practice, marketing, staffing, and administration.
  • Decision-Making: Define voting rights and how major decisions will be made within the partnership.
  • Dispute Resolution: Establish a process for resolving disagreements between partners, such as mediation or arbitration.
  • Exit Strategy: Detail the process for a partner's withdrawal, including buy-out options and valuation methods.

Don't Go It Alone:

A dental lawyer specialising in partnership agreements can guide you through the process, ensuring a comprehensive and legally sound document that protects your interests and fosters a successful partnership.


By investing in a strong partnership agreement, you and your colleagues can build a secure foundation for your dental practice, allowing you to focus on what matters most - providing excellent patient care.


Jacobs Legal is here to help you craft a partnership agreement that safeguards your dental practice and sets you on the path to success.


Contact us today on info@jacobs-legal.co.uk or 07776 132339 to schedule a consultation.

 

Principal vs. Associate-Led Dental Practices: A Financial Analysis

20 September 2024
Understanding the Leadership Structure The leadership structure of a dental practice can significantly impact its financial performance. There are two primary models: Principal-led and Associate-led. Principal-led: In this model, the principal dentist owns and operates the practice, assuming full financial and management responsibility. Associate-led: Here, the dentist is a self-employed contractor to the practice, the principal dentist having the responsibility to provide patients and where necessary, to offer assistance and advice. Financial Implications Income Distribution: Principal-led: The principal dentist retains all profits after expenses, potentially leading to higher income but also greater financial risk. Associate-led : Associates receive a percentage of the fees that they generate as income, providing more financial stability but limiting earning potential. Overhead Costs: Principal-led: The principal dentist is responsible for all overhead costs, which can be substantial. Associate-led: The Associate is responsible for a share of the lab expenses that they generate Debt and Risk: Principal-led: The principal dentist is personally liable for any debts or financial obligations incurred by the practice. Associate-led: The associate is not responsible for the practice’s debts and liabilities. Succession Planning: Principal-led: Succession planning can be more complex, as the principal dentist must find a suitable successor or sell the practice. Associate-led: Succession planning can be easier, as associates may have an option to purchase the practice or continue working under new ownership. Financial Considerations When evaluating the financial implications of a Principal vs. Associate-led practice, consider the following factors: Personal financial goals: Are you seeking higher income potential or a more stable income stream? Risk tolerance: How comfortable are you with assuming personal financial risk? Long-term goals: What are your plans for the future of your dental career? Local market trends: Are there any trends that favour one model over the other in your opinion and experience? Conclusion The choice between a Principal-led or Associate-led dental practice sale and purchase depends on your individual circumstances and financial goals. By carefully considering the financial implications of each model, you can make an informed decision that aligns with your professional aspirations and long-term success. Feel free to contact us for more help and advice.

Purchase Completed in York

19 August 2024
Congratulations to Joanne Nurse on the acquisition of a share in Adventurers Day Nursery in York. Joanne now becomes co-owner of the nursery with Helen Nurse. Many thanks to everyone involved in the transaction, especially Amardeep Nangla for his work done on the property side and all those at Barclays Bank who helped facilitate this transaction. All at Jacobs Legal wish Helen and Joanne all the best for the future and much success in the years to come.
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