Beware the evergreen clause
Automatic contract renewals can leave you in a costly predicament if you fail to give proper notice of termination.
Veterinarians will enter into dozens of contractual relationships throughout their professional careers. They can reasonably expect to sign employment agreements, purchase orders, client payment and IT service contracts, property and equipment leases, real estate deals, and so on. The paperwork can vary in sophistication and complexity, ranging from a straightforward one-page document to a highly […]
At your service
A management services organization adds a layer of structural complexity to a veterinary practice but offers non-veterinarians and even family members the opportunity to reap the financial rewards.
Veterinarians, investors and executives who want to form a management services organization (MSO) often do so without fully exploring the reasons. One revolutionary change in the veterinary industry over the last decade was heightened interest in MSOs, which resulted in a lot of newer market entrants, including, but not limited to, private equity. The problem […]
Close the deal
When negotiating an employment agreement with an associate veterinarian, start with the basics — at-will or contract? — and go from there.
Managing your veterinary practice can be overwhelming, but protecting your business is of the utmost importance. That’s why having a solid employment agreement with an associate veterinarian — one delineating pay and responsibilities — is critical. For an employment agreement to be enforceable, what need to exist are a clear job offer, an acceptance of […]
A handshake isn’t enough
Practice partnership agreements need to be tightly written and account for eventualities, such as how disputes are settled and how a buyout is accomplished.
After extensive deliberations, you take a leap of faith and decide to dive into a veterinary practice partnership. While excitement compels you to rush into the venture, taking a step back to evaluate the implications and properly structure the business arrangement will greatly benefit you and your partners in the long run. A carefully tailored […]
Ready for departure
Severance agreements can be worthwhile when cutting ties to a team member, but employers need to be careful with the terms and cognizant of applicable laws.
Have you ever terminated an employee? Whether the act was related to performance, a practice reorganization or another issue, navigating the process can be challenging. In these situations, a severance agreement can be a helpful tool for employers, but many don’t understand how or when to use them. Here are answers to eight commonly asked […]
7 must-do’s before you sell
Potential hospital buyers want to see everything, from contracts to liens. Your advisers will play key roles in the process.
When the time comes to sell your veterinary practice, the most important part, of course, is finding a buyer who is willing to pay the right price. But before the “For Sale” sign even goes up, follow these seven steps to position yourself for a smooth sales process. 1. Get Tax and Legal Advice One […]
It’s your move
Employee noncompete agreements aren’t always enforceable, especially if time and geographic limits are too broad.
Have you ever recruited the perfect job candidate only to find he had a noncompete agreement with a current or former employer? At a time when unemployment rates are low, the situation can be particularly frustrating. A common assumption is that legal liability for breaching a noncompete falls on the employee. Unfortunately, that’s not always […]
The devil’s in the details
Not understanding common contract terms and failing to renegotiate certain provisions when appropriate can cause unnecessary risk and liability.
Reading the fine print in a business contract is probably not your idea of a good time. You have a busy practice and negotiating contracts is clearly not why you became a veterinarian or hospital administrator. That said, every business owner or manager should have a firm understanding of which contract provisions require careful review. […]
Seal the deal
Negotiating the purchase or sale of a veterinary practice requires a firm understanding of all the documents.
The number of mergers and acquisitions occurring in the veterinary industry is unquestionably at an all-time high. Corporate chains and aggregators own as much as 15 percent of general companion animal practices, according to estimates, and the percentage is even higher for specialty practices. This means an increasing number of veterinarians are entering the deal […]
Noncompete agreements protect the practice when a veterinarian leaves, but they are not always enforceable, so choosing an alternative measure could be a smart move.
Nearly every industry uses employee noncompete agreements, and veterinary practices are no exception. Whether you’re a veterinarian or an administrative professional who has been presented with a noncompete agreement as a condition of employment, or a practice owner considering how to protect your business, you need to know the types of agreements in play, the […]