The best time to plan for a medical partnership exit strategy is at the start of the arrangement, as departures due to retirement, disability, or other circumstances are inevitable. Without a clear plan, disputes and litigation can arise. Frier Levitt partner Charles Newman explores this topic in his article for Physician’s Weekly, “Physician Partnerships: Planning Tips to Avoid a Messy Business ‘Divorce’” outlining key considerations for an operating or shareholder agreement, including:
- Buy-Sell Rights and Obligations
- Valuation Method
- Funding Mechanisms
- Non-Compete and Non-Solicitation Clauses
- Dispute Resolution
- Tax Implications
By proactively addressing these factors and establishing a well-defined exit strategy, physicians can reduce potential conflicts and facilitate a seamless transition when a partner departs.
To learn more about these planning tips, access the full article here: https://www.physiciansweekly.com/physician-partnerships-planning-tips-to-avoid-a-messy-business-divorce/
