Practice Finance

Setting and Agreeing on a Price of an Associate Buy-In

Excerpted with permission from Associate Buy-Ins, 2nd Edition (AAHA Press). © 2012 by Lorraine Moneiser List, CPA, CVA. To order, visit aaha.org/store.

The importance of negotiating a fair price for the practice in a buy-in situation cannot be overstated. If the practice is overpriced, the buyer may not be able to make the payments and may end up feeling victimized by the seller. If the practice is underpriced, the buyer will get a windfall that fails to reward the seller for the efforts and resources that went into making the practice successful. Negotiating a price may be the most critical part of designing and implementing a successful...