Selling your dental practice is a major life event, whether it’s for retirement or to pursue a new venture. The legal process is intricate, but with the right legal team, it can be a straightforward experience. Here’s a breakdown of the key stages from a legal perspective.
1. Preparing for Sale
Even before you find a buyer, getting your legal house in order can make the process faster and more valuable. This involves:
- Organising Your Documents: Having all your financial records, employment contracts, and property documents ready.
- Addressing Any Issues: Proactively resolving any CQC compliance issues or outstanding legal matters.
2. The Heads of Terms
Once you have a buyer, the first step is to agree on the Heads of Terms. This document is a summary of the deal and sets the framework for the legal contracts that follow. Your solicitor will review this to ensure your interests are protected.
3. The Due Diligence Period
The buyer’s solicitor will carry out due diligence. This is where they will ask you and your team detailed questions about the business. Your solicitor will manage this process, helping you respond to the enquiries in a timely and accurate manner.
4. The Sale and Purchase Agreement (SPA) or Asset Purchase Agreement (APA)
This is the main legal contract for the sale. We will draft and negotiate the SPA/ APA on your behalf, ensuring it includes clear terms on the sale price, payment schedules, and crucially, a fair balance of risk. We will make sure you are protected by carefully crafted warranties and indemnities.
5. Completion and Post-Completion
The completion date is when the money is transferred and legal ownership changes hands. Your solicitor will handle all the final legal steps, including the transfer of the NHS contract and CQC registration. We will also advise you on any post-sale obligations.
At Jacobs Legal, our goal is to achieve a clean and efficient sale for you, allowing you to move on with confidence. Our expertise in the UK dental sector is second to none, so you can trust us to handle every aspect of your legal journey. Contact us for a discussion about your future plans.