Drs. A and B had practiced together for over twenty years and were very good friends. They were equal owners of a successful, incorporated practice. They had a “simple” (ambiguous) contract drafted by an attorney about ten years ago in which each doctor had an option to buy the practice of the other should either of them die. Three years later, Dr. A suddenly died of a heart attack.
“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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