In search of an ideal dental practice to purchase, the client retained Dental &Medical Counsel to review their purchase agreement to make sure what the parties agreed to is included in the agreement.
While performing due diligence on the seller’s practice, the lawyers at Dental & Medical Counsel asked to see a financial report on patient credits since the credits were not listed in the purchase agreement.
Due to the fact that patient credits weren’t listed in the purchase agreement, the team of lawyers added language to the agreement asking the seller to pay out his patients who had remaining credit on their accounts on or before the closing date of the sale.
If Dental & Medical Counsel had not caught the patient credits that was missing from the agreement, the buyer would have been responsible for $175,000 in patient credits.
In the end, Dental & Medical Counsel saved the buyer close to $200,000 by identifying what was missing in the original contract. Fortunately, the purchase agreement was accepted and now the dentist is running a successful practice.