The more both parties can agree on and put down in writing the better the likelihood of success. BUYING IN OR BUYING OUT – THAT IS THE QUESTION If the relationship is working well and the owner wants to eventually sell the practice, it is a good idea to have it appraised by a professional who is at arms length from either the owner or the associate. As a rule of thumb, most practices go for about half of the earn-ings averaged over the last three years of practice. This includes all equipment that go with the normal operation of the clinic. There are some variables when it comes to specialized equip-ment. If the building is owned, then that obviously changes the formula. Another option that is available for an associate who wants to leave is to buy his or her goodwill from the owner. This allows the associate to usually set up within the geographic boundary and allows both the associate and owner to keep money in their own pockets, rather than paying lawyers to fight it out in court. This leaves a good feeling for both the owner and associate, and potential makes for good vacation cov-erage when required. The associate can also buy-in along the way and, as a result, ensures they have first dibs in the practice sale when the time comes along with less of a payment. The one thing that both parties need to do is get legal advice before engaging in any of these arrangements as too many failures and disappointments have occurred as a result of being cheap or ignorant. The more you can agree on and get in writing ahead of time the better off any associateship will be. I cannot stress this enough. Find more articles on professional development and practice building online at www.canadianchiropractor.ca. HOMECOMING 2018 JUNE 1 – 2 W www.canadianchiropractor.ca CC_CMCC_Feb18_CSA.indd 2 February 2018 Canadian Chiropractor 23 2018-01-19 1:02 PM
Chiropractic + Naturopathic Doctor February 2018: Page 23
