Are you considering forming a partnership or group practice? If so, you may have these questions:
- How will we allocate the profits between all doctors?
- With so many partnerships failing, how can we set ours up the right way from the beginning?
- I’d like to provide a buy-in opportunity for my associate. How do I structure the buy-in?
- What is the best legal structure to form our partnership?
- How do I show my partner I’m devoted to the partnership while also protecting my financial well-being.
- How do we account for newly formed goodwill created from the time my associate started?
- How will we structure the buy out of the remaining interest when I retire?
Partnerships can be very successful (and profitable) or they can end in financial and emotional disaster. PracticeCFO believes a partnership, properly structured, creates competitive advantages to practice owners. Partnerships create synergies while simultaneously sharing fixed costs, resulting in highly profitable practices. However, because they are also very susceptible to failure, doctors need proper guidance when forming the partnership and determining their profit distribution methodology.
Our partnership consulting services will benefit you by providing:
- A partnership formation road map
- A properly designed ownership and entity formation arrangement.
- A properly designed profit allocation methodology
- Dual representation helping both parties agree to an independent partnership adviser
- Comfort knowing you’ll have a high probability for success in your partnership
- A third party (us) to help facilitate proper communication between all partnership through periodic “board meetings.”
- Excellent partnership accounting, reporting, and tax services