question about valuation and buyout of practice share

December 7, 2011

Hi,

For those that do or have been through a partner buying out another

partner's share in a private practice, how is the debt usually handled? Is

it divided up or does the partner retaining the clinic ownership agree to

carry the clinic debt?

Thanks

M.Howell, P.T., M.P.T.

Howell Physical Therapy

Eagle, Idaho

thowell@...

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December 8, 2011

Debt is retained by the clinic, but factored into the buyout

Ron Barbato PT

Administrative Director, Rehabilitation Services

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question about valuation and buyout of practice

share

Hi,

For those that do or have been through a partner buying out another

partner's share in a private practice, how is the debt usually handled?

Is

it divided up or does the partner retaining the clinic ownership agree

to

carry the clinic debt?

Thanks

M.Howell, P.T., M.P.T.

Howell Physical Therapy

Eagle, Idaho

thowell@...

This email and any files transmitted with it may contain PRIVILEGED or

CONFIDENTIAL information and may be read or used only by the intended

recipient. If you are not the intended recipient of the email or any of

its

attachments, please be advised that you have received this email in

error

and that any use, dissemination, distribution, forwarding, printing or

copying of this email or any attached files is strictly prohibited. If

you

have received this email in error, please immediately purge it and all

attachments and notify the sender by reply email.

December 8, 2011

Typically when a practice is bought, it is an asset purchase and purchased

debt free. It is not retained because the liability of the owner likely

has personally guaranteed along with liens on assets mostly the accounts

receivable. It can be bought with the debt factored in but this is more

difficult because of banking issues (an owner typically doesn't want to

guarantee a loan if they are no longer an owner). Obviously, this is just

the typical scenario.

Larry Benz PT, DPT

CONFIDENTIALITY: This message is " Off The Record " . A lot of fancy legal

speak that none of us reads or understands is often contained here.

> **

>

> Debt is retained by the clinic, but factored into the buyout

>

> Ron Barbato PT

> Administrative Director, Rehabilitation Services

> rbarbato@...

>

> PRIVILEGED AND CONFIDENTIAL: This transmission may contain information

> that is privileged subject to attorney-client privilege or attorney work

> product, confidential and/or exempt from disclosure under applicable

> law. If you are not the intended recipient, then please do not read it

> and be aware that any disclosure, copying, distribution, or use of the

> information contained herein (including any reliance thereon) is

> STRICTLY PROHIBITED. If you received this transmission in error, please

> immediately advise me, by reply e-mail, and delete this message and any

> attachments without retaining a copy in any form. Thank you.

>

> question about valuation and buyout of practice

> share

>

> Hi,

>

> For those that do or have been through a partner buying out another

> partner's share in a private practice, how is the debt usually handled?

> Is

> it divided up or does the partner retaining the clinic ownership agree

> to

> carry the clinic debt?

>

> Thanks

>

> M.Howell, P.T., M.P.T.

>

> Howell Physical Therapy

>

> Eagle, Idaho

>

> thowell@...

>

> This email and any files transmitted with it may contain PRIVILEGED or

> CONFIDENTIAL information and may be read or used only by the intended

> recipient. If you are not the intended recipient of the email or any of

> its

> attachments, please be advised that you have received this email in

> error

> and that any use, dissemination, distribution, forwarding, printing or

> copying of this email or any attached files is strictly prohibited. If

> you

> have received this email in error, please immediately purge it and all

> attachments and notify the sender by reply email.

>

December 8, 2011

Thank you! I appreciate the info.

Tom Howell

>

Typically when a practice is bought, it is an asset purchase and

> purchased debt free. It is not retained because the liability of the

> owner likely has personally guaranteed along with liens on assets mostly

> the accounts receivable. It can be bought with the debt factored in but

> this is more difficult because of banking issues (an owner typically

> doesn't want to guarantee a loan if they are no longer an owner).

> Obviously, this is just the typical scenario.

>

> Larry Benz PT, DPT

>

> CONFIDENTIALITY: This message is " Off The Record " . A lot of fancy legal

> speak that none of us reads or understands is often contained here.

>

>> **

>>

>> Debt is retained by the clinic, but factored into the buyout

>>

>> Ron Barbato PT

>> Administrative Director, Rehabilitation Services

>> rbarbato@...

>>

>> PRIVILEGED AND CONFIDENTIAL: This transmission may contain information

>> that is privileged subject to attorney-client privilege or attorney

>> work product, confidential and/or exempt from disclosure under

>> applicable law. If you are not the intended recipient, then please do

>> not read it and be aware that any disclosure, copying, distribution,

>> or use of the information contained herein (including any reliance

>> thereon) is STRICTLY PROHIBITED. If you received this transmission in

>> error, please immediately advise me, by reply e-mail, and delete this

>> message and any attachments without retaining a copy in any form.

>> Thank you.

>>

>> question about valuation and buyout of practice

>> share

>>

>> Hi,

>>

>> For those that do or have been through a partner buying out another

>> partner's share in a private practice, how is the debt usually

>> handled? Is

>> it divided up or does the partner retaining the clinic ownership agree

>> to

>> carry the clinic debt?

>>

>> Thanks

>>

>> M.Howell, P.T., M.P.T.

>>

>> Howell Physical Therapy

>>

>> Eagle, Idaho

>>

>> thowell@...

>>

>> This email and any files transmitted with it may contain PRIVILEGED or

>> CONFIDENTIAL information and may be read or used only by the intended

>> recipient. If you are not the intended recipient of the email or any

>> of its

>> attachments, please be advised that you have received this email in

>> error

>> and that any use, dissemination, distribution, forwarding, printing or

>> copying of this email or any attached files is strictly prohibited. If

>> you

>> have received this email in error, please immediately purge it and all

>> attachments and notify the sender by reply email.

>>

December 8, 2011