Are You Worried You May Be Forced To Buy Out Your Partner(s) or Be Unable To Sell Your Practice?

Despite a common belief practices are worth nothing, the courts have ruled they actually are worth a fair bit. The following example from 2001 deals with four GP associates in South Australia.

Three owners were successfully sued by an outgoing partner for just under $100,000. At the time they refused to buy out the doctor’s interest when it could not be sold externally. The Courts enforced a legal obligation on the existing owners to purchase the fourth interest.

Our practice owner agreements include a pre-determined formula to avoid this problem. We also do VALUATIONS REPORT.