First few Article Sentences
Imagine if a shareholder in a physician practice could leave the practice while taking a share of the practice's revenue as well as his patient base with him. Or, if the newest and youngest shareholder is required to buy out the older shareholders all at once because they're free to leave the business with very short notice, and without having prepared for succession.
Both of these are real-and scary-scenarios that emphasize the importance of a strong, clearly written buy/sell agreement for physician practices. All practices, from a simple family practice to a complex group with several specialties, need to spend time on these agreements so they can be used as guides during transitions or when issues arise. A clearly written buy/sell agreement helps mitigate uncertainty and increase liquidity, while allowing a company to continue operating without disruption during a time of transition. Nevertheless, problems, especially litigation, often arise as the result of disputes over these agreements, which can be ambiguous or lacking in structure.