Good thing there is a signed non-compete clause? Not so fast. In most cases, non-competition clauses contained in employment agreements are not enforceable under current law. In fact, including such provisions are including in employment contracts raises a red flag easily seen by a competent judge.
This is one of the kinds of things that can be overlooked in transition planning if competent experts are not used from the beginning. Most brokers will not have enough knowledge to overcome pitfalls like this. An attorney that focuses on dental transitions is critical.
Here is another scenario: selling dentist wants to sell his practice. He asks around and learns about a rule of thumb based on gross billings. Asking around causes a broker to come calling, suggesting he can get a new dentist to pay more than that number. A buyer comes into the picture but the price is a problem. The buyer does not trust the price quoted from the listing dentist, nor is the rule of thumb good enough. With enough salesmanship, the broker may be able to get the buyer to accept the higher number. Then comes financing. The banks won't trust the valuation number of a broker that is getting a commission on the sale. The sale that almost failed before is doomed again.
This is another situation that needs professional experts. A CPA with CVA credentials (certified valuation analyst) will be able to create a valuation that the buyer and the lender can live with. As with case acceptance, the authority of a third-party expert builds trust and gets the deal done.
Transitioning your practice without a broker is great but don't go it alone. Put competent experts to work and see the trust grow and problems diminish.
By the way... How can a senior dentist protect his patient list? by using expert crafted trade secret provisions. The patient list becomes a trade secret and can be protected by the full weight of the law.
