BUYING A PRACTICE

Purchasing a dental practice is a complex transaction. You need someone that understands the process, can guide you through it, and will ensure that your rights and interests are protected. It requires doing a lot of detailed things right, such as preparing and finalizing Letters of Intent, negotiating the Agreement of Purchase and Sale, undertaking due diligence, dealing with staff and associates, transferring your lease, incorporating a new DPC and closing the transaction, just to name a few. At DMC, our lawyers have been helping dentists buy and sell practices since 2010. We have seen all types of transaction challenges and successes which allows us to effectively advise you on your options when faced with a tough choice, help you weigh benefits and disadvantages, and show you how to minimize your risk. Further, we negotiate hard to make sure that your rights are protected and your interests are promoted throughout the process.

The first step is a Letter of Intent, which is generally a non-binding document that outlines some of the main terms for the transaction. Once the Letter of Intent is accepted, the parties have their professional advisors (e.g. DMC as your lawyer) begin diligence on the dental practice while drafting, negotiating and finalizing the formal agreement of purchase and sale plus all the other transactional documents. At the same time, the purchaser may need to secure their loan financing, and the lawyers will be working on an assignment of the premises lease plus setting up or updating your dentistry professional corporation and any holding companies needed.  Lastly, the transaction closes, final documents and funds change hands, and the on-site transition begins.

After the closing, there are typically several on-site steps that need to be taken to help “finalize” and “clean up” the transaction.  These may involve dealing with employees, working with the vendor in a principal-associate capacity, and notifying necessary parties of the transition (e.g. RCDSO, Ministry of Health and Long-Term Care, etc.). 

DMC can manage the entire sale process for you, from choosing the right practice to closing the deal. We know the process and the industry players. We have the background and the tools to help you get the best deal possible. With DMC on your team from the beginning, you are assured of having lawyers who are dental industry insiders committed to your goals and ensuring your rights are protected and interests are promoted at every stage.