Finance and valuation
Asset sale
An asset sale is a sale in which the buyer purchases specific assets of the practice, such as equipment, records and goodwill, rather than the owner's company itself.
IRS Publication 544 says the sale of a business is usually not a sale of one asset. For tax purposes, each asset is treated on its own, and the price is divided among them, including how much is for goodwill and certain other intangible property. That split affects the tax result for both sides, so the parties should work with a CPA and an attorney from the start. In a dental sale the assets often include equipment, supplies, patient records and goodwill. Contracts, leases and licenses may need separate handling. The price is set through a practice valuation.