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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Im in the process of buying into an existing business. It

Resolved Question:

I'm in the process of buying into an existing business. It is a large dental practice which I helped to set up 8 years ago (I am a dentist) on behalf of medical GPs. All 7 GP business owners will remain and I will join them as the 8th partner. The business has been professionally valued and a price agreed for my 12.5% share. My accountant has done a thorough read through of the accounts for the last 3 years.
My Q:
I haven't yet involved a lawyer. I have been in a dental business arrangement before in another practice and exited the partnership to go part time and have my children.
Re this buy in - It is my understanding so far that there will be 2 legal documents; a working partnership agreement and a sale/purchase document. Please advise me I understand this correctly.
I would also like to know if the same lawyer can legally advise both parties? The GPs are wishing to keep costs down and have floated this as an idea particularly regarding the partnership agreement.
In the handing over of my funds to purchase my share should this really be done via a legal representative of my own? I know the answer really! But I'd like some expert input.
Thank you very much
Jude
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello Jude,
Yes, there are 2 aspects of you joining this dental practice, one as a shareholder where you will purchase a 12.5% share in the business at a fee and the second as a partner under a partnership agreement.
The two documents are the sale and purchase agreement of shares and a partnership agreement as you point out. Both these documents may be combined into one but it seems that the existing business model uses two sets of different agreements which is also fine.
Yes, one solicitor may advise both you and the business/current partners but there will be a conflict of interest and this must be waived by both you and the business/current partners and the lawyer must confirm that he or she is able to represent both of you and protect the interests of both clients.
My personal opinion is that you should appoint your own solicitor and let the current partners appoint their own so that your interests are properly protected. You may nominate payment of all funds through your solicitor which is the advisable option as you have already picked up.
May I help further?
Customer: replied 2 years ago.
Hi, thanks for your reply, very helpful. Just one last Q - just to be sure I've got it - can their solicitor deal with my signing of the partnership agreement part only and my solicitor do the sale bit?
Expert:  UKSolicitorJA replied 2 years ago.
Absolutely.
All the best and please leave feedback
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