Dentaltown September 2013 - (Page 68)

transitions feature by Jason P. Wood, Esq A s a child, there is nothing better then playing with friends on a warm summer day and running into the house for a cold soda. Ahhh! Refreshing, cold Coca-Cola! How do they make such a wonderful drink? Only two people who cannot be within 500 miles of each other at any given time know the answer to that question. Why the secrecy? Part of the reason is marketing, which will not concern us here, but the other reason is Coca-Cola must protect its product otherwise it might lose the “secret” part of the term “trade secret.” Why should you as a dentist care about the secret recipe of Coca-Cola? If you have an associate working in your dental practice, your patient lists must be protected, otherwise you run the risk of losing them to your associate if he/she decides to leave. Assume for a minute that you have built a successful dental practice that is collecting $1,000,000 per year. You‘ve had an associate with you for some time who is producing about $425,000 of that sum, while you and the hygiene department 68 SEPTEMBER 2013 » dentaltown.com produce about $575,000 of your collections. You list the practice with a broker, and depending on how hot the dental practice market is in your part of the country, you expect to receive as much as $850,000 for your practice. Once you receive an acceptable offer, you start giving the buyer and the buyer’s advisors various due diligence information so they can evaluate the practice. Unfortunately, when they ask you for a signed associate agreement, you, like the majority of doctors employing associates, have no written agreement, relying rather on a handshake and a pat on the back. Unfortunately, that decision could cost you as much as $300,000 on the sale of your dental practice because there is nothing stopping your associate from moving next door and opening up a competing dental practice! Like any good business, a dentist seeking to grow his or her practice by hiring associates needs a good plan, and part of that plan includes an employment agreement. It is the intent of this http://www.dentaltown.com

Table of Contents for the Digital Edition of Dentaltown September 2013

Howard Speaks: Getting Poised for Growth
Professional Courtesy: Say Hello to Great Service
Second Opinion: Why Won’t My Practice Sell?
Advice Regarding #8 RCT and Large Apex
Patients Who Refuse Perio Treatment
Corporate Profile: Sesame Communications
Office Visit: Building Bridges in Dentistry
Enhancing a Smile with Cosmetic Dentistry in the New Economy
Top 10 Questions Dentists Ask When Buying or Selling a Practice
Women’s Time in Dentistry Has Come
The Benefit of Associate Agreements in Dental Practice Sales
Retirement Transition: “Mr.” Instead of “Dr.”, What Do I Do Now?
Paperless is NOT the New Black
Simple Safe Gingivectomy Around Implants Prior to Impression
Laser-Assisted Peri-Implantitis Procedure
In This Issue: Close Your Mouth
Perio Reports
Profile in Oral Health: Nose Breathing for Good Health, Fitness and Correct Craniofacial Development

Dentaltown September 2013