CDA Essentials 2014 • Volume 1 • Issue 7 - page 32

| Volume1 Issue7 32
Supporting Your Practice
Getting Your Practice inTop Condition
FORASMOOTHAND
PROFITABLESALE
Buyers arebecoming increasingly
sophisticated inevaluatingpractices,
according to theexperts. They
discussedanumber of potential
obstacles that could lead to
decreasedvalue inbuyers’minds, and
recommended that you start getting
your practice in top shapewell in
advanceof your intended saledate.
TheNecessityof
EmployeeContracts
MarianaBracic (➊), a specialist in
employment law for thehealthcare
sector, said that, “employment issues
haveoneof themost significant
impactson thevalueof your business.”
Sheexplained that abuyer could
potentially spend tensof thousandsof
dollars, ormore, toaddress avendor’s
issues related toemployment law.
The reason,Ms. Bracic said, is that a
number of different laws inCanada
cover employment issues and they
areoftencontradictory. According
todiverseprovincial standards
legislation, themaximum settlement
that anemployee is entitled tocanbe
as lowas 8weeks,whilewithcommon
law, the ruleof thumb for termination
pay isonemonth for everyyear of
employment, up toamaximumof 24
months. For example, to terminate
anemployeewithover 20yearsof
experiencecouldbeextremelycostly
if there isnoproper employment
contract inplace.
Ms. Bracicemphasized that the
remedy is tohavecontracts that
reflect theprovisionsof theminimum
employment standards as legislated
byyour province. She suggested that
you start thisprocess at least 3years
beforeyour anticipated saledate to
giveemployees sufficient notice, and
thenask them to signcontracts. She
maintained that thevastmajorityare
pleased todo so inorder to retain their
jobs.
GettingYourLease in
Shape
DavidRosenthal (➋), a senior lawyer
whoadvisesdentistsonpurchases and
salesof dental practices, focusedon
potential pitfalls inyour building lease
that couldmakeapracticeunattractive
toprospectivebuyers. These include:
ADemolitionClause – If a landlord
decides todemolish theplazaor
building, theycan terminateyour
leaseandevict youwith several
months’ notice.
ARelocationClause –The landlord
can requireyou to relocateyour
practice toanother (andpotentially
lessdesirable) locationwithin the
plazaor building.
CDSPI is committed to supporting
dentists inall phases of their careers.
As part of this commitment,CDSPI
recently convenedapanel of experts to
provideadvice todentists in transition.
TheNavigatingChange forum, held
inToronto, includeddiscussions onhow
tomake yourpracticeas attractiveas
possible topotential buyers, andhow to
invest yourproceedswisely for retirement.
Themain thing Iwant you to come awaywith is
that youneed to surround yourselfwith experts.