Buy Ins and Buy Outs
Treatment of Goodwill Upon the Sale of a Business: Asset of the Owner v. Asset of the Company
In 1980, Larry E. Howard, D.D.S. incorporated his dental practice and entered into an employment agreement and covenant not to compete with the corporation. In 2002, Dr. Howard retired and negotiated the sale of his practice to a corporate buyer for approximately $613,000, most of which was allocated to intangible assets. Dr. Howard reported over… Read More »
SUMMARY OF BUY-IN AND BUY-OUT ARRANGEMENTS FOR MEDICAL PRACTICES
Shareholder Admission A. General Concepts 1. A buy-in typically consists of two components. The first component is a purchase of stock. Generally, the stock represents the “hard assets of the entity.” The second component is a buy in to accounts receivable. 2. With respect to every buy-in, consideration should be… Read More »
