You have a partner or are about to have an associate become a partner:
- Where do you get the set of rules on how to run the business of your practice?
- What should your employment contract say about vacations, call, benefits, termination…
- What do I have to pay my partner if he or I become disabled, die or retire?
If any of the events in number 3 above happens and you don't have a set of governance documents detailing what to do, you and your partners have a good chance of ending up in court.
Governance documents can be:
- Shareholders Agreement
- Operating Agreement
- Employment Agreement
- Deferred Compensation Agreement (Buy Sell)
These documents describe how the practice functions when a partner dies, becomes disabled, retires or withdraws. They also spell out how to become a partner, how you can be terminated and what a partner is to be paid when retiring.
When there is a set of sound governance documents that the partners designed, the documents will sit in a drawer. However when a "special event" occurs, documents spell out the process to be used to determine what each ownership is worth and how it will be paid. Taking the time and making the effort to create these important documents now, when you don't need them will eliminate potential of your deceased or disabled partner's spouse's lawyer becoming your new partner. This eliminates or reduces the problem of determining what the worth of shares are when each party has a different value and agenda in mind.
We do not have to learn your business. We know it. We have been working with practices since 1979. Over the years we have designed these documents for groups of from two to thirty two and for almost all specialties and primary care practitioners.
However, because we are not lawyers and are not practicing law, to make sure the documents are legal in your state you must have them reviewed and modified as necessary by your lawyer. We work with your lawyer to finalize the documents.