Ownership and transitions
Buy-in
The purchase of an ownership share in an existing practice, often by a dentist already working there as an associate.
A buy-in is how a dentist becomes a part owner of a practice that already exists. The ADA describes buy-ins or partnerships as a middle path: a dentist gradually acquires equity in an established practice, often through a phased earn-in.
Structure, price and ownership percentage vary with the practice value and the plan for transition. The terms usually appear in a partnership agreement, and a buy-sell agreement may set the exit terms. A practice valuation often informs the price.
Buy-ins involve tax, legal and lending questions. The people involved should ask their attorney, CPA and lender. This entry explains the term only.