When a buyer looks at your practice, they are buying your patient list. But if your associate contracts aren’t water-tight, that list could walk out the door the day after you complete.
The Three Pillars of a Secure Contract:
Enforceable Covenants: Are your radius and time restrictions realistic? A 10-mile restriction in a city centre is often deemed “unreasonable” by courts and thrown out, leaving you with zero protection.
Binding Signatures: You’d be surprised how many “active” associates are working on expired contracts or unsigned drafts. In a sale, these are worth nothing.
The Binding Clause: Ensure your contracts include a clause that allows the benefit of the agreement to be transferred to a new owner (the buyer).
Why This Matters Now During due diligence, the buyer’s solicitor will scan every associate agreement for “paper-leaks.” If your contracts are messy, it signals a lack of order, which makes buyers nervous and leads to delays.