When to allow a potential acquirer access for "due diligence/transition"?
Provided by: Jennifer Kirschenbaum, Esq.
January 30, 2018
I finally found an entity to take my practice over. They want to come in and look around and meet my employees. When is that appropriate?
Absolutely no materials should be sent over for review without a non disclosure agreement or confidentiality agreement in place. As far as physical access goes, yikes! Make sure you have a pretty done deal to ensure your staff doesn't get spooked, or even worse, your operations are interfered with outside of spooked staff (i.e., I've seen payors notified of a Tax ID change before a sale is actually consummated - total nightmare for seller and creates a "no way out" scenario). It's great you have an interested buyer, and its great they are motivated - but make sure you have the right counsel from the start to protect your practice from premature onboarding, and also for the terms going in, and anticipating a potential divorce, if needed.
Happy to discuss offline for more specific advice!
Contact Jennifer at Jennifer@Kirschenbaumesq.com or at (516) 747-6700 x. 302.
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com