When a practice is bought by a micro-corporate and the owner agrees to stay around for a period of years (with or without an earn-out) it can go one of two ways.
The former owner, now turned associate:
- becomes an enthusiastic ambassador, encouraging the team and the patients to remain loyal and themselves eagerly participating in refurbishment, human interest marketing and digital dentistry. Or…
- becomes a cynical saboteur, encouraging the team and the patients to ignore, obstruct and object to every initiative.
Therefore, I suggest that part of your due-diligence process is to make a serious and detailed assessment of which type of former owner you are going to be dealing with, before money changes hands.
An ambassador can add value to your purchase and is to be cherished.
No matter how attractive the financial arrangement, walk away from the saboteur. They can make your life a misery.
If they slip through your due diligence net – fail fast.