A sales agreement is an important document when selling a dental practice. It outlines the terms and conditions of the sale and protects the interests of both the seller and the buyer. In this blog post, we will discuss some key considerations for what to include in a sales agreement when selling a dental practice.
First and foremost, the sales agreement should include a clear and concise description of the dental practice being sold. This should include information on the location, equipment, and any other assets that are being transferred as part of the sale. The agreement should also specify the purchase price and any contingencies that are in place, such as the completion of a due diligence period or the obtaining of financing.
It is also important to include provisions for the transfer of any leases, licenses, and permits related to the practice. The agreement should specify who is responsible for transferring these items and any associated fees. Additionally, the agreement should outline any restrictions or obligations related to the practice, such as non-compete clauses or requirements for the buyer to maintain certain standards of care.
Another key consideration is the representation and warranties made by the seller. The sales agreement should include any representations and warranties made by the seller regarding the practice, such as the accuracy of financial statements or the condition of equipment. The agreement should also outline any indemnification provisions, which outline the seller’s responsibility for any claims or damages that may arise after the sale.
It is also important to consider the terms of payment and closing. The sales agreement should specify how the purchase price will be paid and any closing costs that will be incurred. The agreement should also outline the closing date and any contingencies that must be satisfied before the sale can be completed.
In conclusion, a sales agreement is a crucial document when selling a dental practice. It should include a clear and concise description of the practice, provisions for the transfer of leases, licenses, and permits, representation and warranties made by the seller, and terms of payment and closing. Working with a trusted attorney and a dental real estate broker can help ensure that the sales agreement covers all the necessary bases and protects your interests.
