Purchasing an existing dental practice with an established patient base and good reputation is a great way to build or scale your current business. But buying a deceased dentist's practice presents unique legal, financial, and operational challenges that go far beyond a standard acquisition.
As you are about to see, negotiating the purchase is just one part of the complex transaction. There are probate proceedings, estate administration, and the disposition of a dental practice, all of which must occur before the transaction is officially completed and ownership is transferred.
In regular sales practices, the owner negotiates directly with the buyer, making the transaction much more straightforward.
But when buying a deceased dentist's practice, it is usually part of the dentist's estate, complicating the deal.
Before the deal can take place, the buyer needs to contact the personal representative of the deceased dentist, executor of the estate, or administrator - in other words, a person who has the legal authority to sell the practice. Further, probate proceedings will affect the timeline, further complicating the matter.
Also, the disposition of a dental practice involves more than simple equipment and patient file transfer. We are talking about a dental practice and all of its intricacies - buyers should review employment agreements, vendor contracts, accounts receivable, and everything else to ensure everything necessary is included in the deal.
Those are just some of the reasons why working with a knowledgeable dental practice acquisition attorney can help identify potential issues as early as possible and successfully coordinate with the estate representatives, reducing delays.
Our firm recently had a dentist client who wanted to purchase a dental practice in Illinois from a colleague who had recently died.
The transaction required not only balancing the legal and financial complexities of acquiring a deceased dentist's practice, but also navigating the emotional relationships within the seller's family. We needed to balance that with our client's wish to move as quickly as possible to preserve patient relationships, maintain continuity and active dental associates contracts, and protect the goodwill built over many years.
The process involved working through probate-related issues involving estate administrators, heirs, and the legal disposition of a dental practice, all in line with the Illinois 755 ILCS 5/Probate Act of 1975. We managed to close the deal in a timely manner, respecting the seller's situation.
The experience showcases how buying a deceased dentist's practice is far from a standard purchase agreement. An experienced dental practice acquisition attorney can help navigate probate issues and clear legal obstacles, reducing the time needed to close the deal successfully.
From probate proceedings and dealing with estate administrators to the disposition of a dental practice, purchasing a deceased dentist's practice involves unique legal challenges that require careful planning.
Whether you're buying your first practice or looking to grow your business, getting expert legal guidance is essential, as it will smooth out the transaction.
Contact Finn Legal today to discuss your dental practice acquisition and avoid legal pitfalls while ensuring compliance.
