Talk to me about partnership...

[umsami]

So, a cataract/refractive guy wanted to expand his specialties to include vitreoretinal (surgery/medical). He funded equipment, salaries, etc. Now wants to talk partnership. No idea how much to ask for, parameters, etc. Retina was set up as a separate company.

Help!

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[JMK2005]

So, a cataract/refractive guy wanted to expand his specialties to include vitreoretinal (surgery/medical). He funded equipment, salaries, etc. Now wants to talk partnership. No idea how much to ask for, parameters, etc. Retina was set up as a separate company.

Help!

need more info.

 

[orbitsurgMD]

If retina was set up as a separate company, I have to assume he is the majority stock owner of said company. Is the "partnership" he is offering actually an offer to sell you shares in the retina company? Are all shares equal or are there different classes of shares with differing voting rights? Are you being offered a voting share proportional to your stock ownership? Is his professional activity taking place under the charter of a different company, of which he is also the majority/sole stock owner/?

I suspect the separate company arrangement allows for spin-off if desired at some point as well as protecting the parent/controlling company from judgments.

As with any practice sale, everything depends on what is for sale and what the price is. Does the "retina company" own anything? (Any assets like equipment, real property or accounts receivable? Any valuable intangibles like contracts, trademarks or copyrights? Any intangible liabilities, like property or equipment leases or partnerships with the owner group or others? Any debt?) Are there encumbrances in the buy in? Is the price contingent on Medicare rates over time or fixed?

 

[Visionary]

need more info.

This. There are so many aspects to consider that without more information, it's nearly impossible to advise you. OrbitsurgMD threw out some pertinent questions to start, but really, we need to know more about how the practice is currently set up and where you fall. I assume there are other docs in the group. Are some of them partners? How did it work for them? Is it an equal share or are shares graded toward the senior partners? What exactly would you be buying into? Is there property ownership? ASC?