Dr. A was sixty-two years old and had been practicing dentistry for thirty-two years in a medium size town in middle Georgia. His practice was grossing about $900,000 a year. His children were married, his mortgage was paid, and he had a sizable amount of money put away in his pension plan. He felt a great deal of pride knowing that he had accomplished the ultimate “American Dream”.
“What consideration, if any, should be given to the new dentist as it relates to the increased value of the practice resulting from the associate’s added production during the deferred period (before buying into the practice and becoming an owner)?”
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A professional corporation is a State chartered and regulated business entity formed for the purpose of conducting a business (or professional practice)...
Absolutely. The best thing the owner of a practice can do when he wants to sell his practice (and has an associate with no contract working in the practice) is to offer to pay $5000 or $10,000 to the associate as consideration for a restrictive covenant that can be transferred to a new purchaser.
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