Ownership and transitions
Practice transition
A change of ownership of a practice, such as a sale, a merger or a hand-off to an associate, often planned over months or years.
A practice transition is a change in who owns or runs a practice. It can be a full sale, a sale of part of the practice, a merger, or a gradual hand-off to an associate. The ADA says a phased buyout lets the owner and buyers learn an accurate value now and sets the stage for a full transition later.
The ADA also points sellers to tip sheets and video resources to help plan and manage the transition process. Related steps include practice valuation, a letter of intent and succession planning.
Transitions involve legal, tax and financing questions. Owners should work with their own advisers. This entry defines the term only.