In a dental partnership, the relationship between the two partners degraded over several years, so that they kept their practices almost completely separate and deeply distrusted each other. One partner wished to retire and sell his practice to any person other than his partner. The other partner wished to buy out the retiring partner. The buyer retained Dental & Medical Counsel for assistance in overcoming steep challenges in dealing with the selling partner and the seller’s attorney in acquiring the other half of the partnership.
The lawyers at Dental & Medical Counsel first convinced the seller’s attorney that his client had no real other options but to sell to Dental & Medical Counsel’s client. Then, the attorneys at Dental & Medical Counsel shepherded the buyer through difficult negotiations. Throughout, the seller attempted to conceal and misrepresent documents and information affecting the value of the seller’s practice.
Because of the purchase and sale agreement the lawyers at Dental & Medical Counsel negotiated, the due diligence revealed that the seller’s accounts receivable balances were significantly overstated. Therefore, the lawyers at Dental & Medical Counsel pressed the seller’s attorney for truthful information, and eventually negotiated a better purchase price for the buyer.
Due to the discovery of the lower accounts’ receivable balances, Dental & Medical Counsel renegotiated the purchase price at $50,000 lower than originally agreed upon.
In the end, Dental & Medical Counsel saved their client $50,000 in the transaction, and the client is currently running the entire practice successfully.