Practice tip of the week: Issues to consider before selling your practice
Your weekly dose of wisdom from the Physicians Practice experts.
With all the useful information available on Physicians Practice, it is easy to become overwhelmed.
With this in mind, the tip of the week is a chance to reflect on some of the wisdom found all across the site. In this May 2024 article on new issues practice owners should consider before selling their practice, Angela Humphreys, gives this tip:
How will you treat employed physicians in a transaction in the absence of non-competes? The Federal Trade Commission’s (FTC) final rule prohibits post-employment non-competes. However, non-competes remain permissible in connection with the sale of a business or an ownership interest. Although the final rule currently is subject to challenge in the courts, the FTC appears confident that the rule will be upheld.
Consider whether employed physicians should become owners in the practice prior to a transaction and receive proceeds and rollover equity in order to ensure that they will be bound by post-transaction non-competes. In addition, consider beefing up confidential information, trade secret and other restrictive covenants.
Click here to read the rest of the article and be sure to check back next week for another Tip of the Week!
