In Arizona, buyers who want to purchase a dental practice follow specific guidelines. The sales contract is legally binding and leaves little room for negotiations once it’s signed. An alternative action offers a chance to review the terms and achieve a better deal. A local broker helps buyers use a letter of intent when buying a dental practice for sale in Arizona.
What is the Letter of Intent?
A letter of intent is a non-binding agreement stating that the buyer wants to purchase the practice. The purpose of the letter is to present concepts and requirements to the seller’s attention. The two parties use the letter to generate an agreement once each term is agreeable.
The Purchase Price for the Property
The parties discuss whether or not the buyer receives all equity and assets connected to the practice. Any stocks associated with the practice are reviewed, too. The parties must agree to the percentage of stocks owned by the buyer after the sale.
Does the Buyer Acquire the Accounts Receivable?
All incoming payments associated with the seller’s practice are collected during and after the sale. The buyer has the opportunity to purchase the current and/or outstanding payments. The sales contract defines who collects the profits. A letter of intent includes provisions for the payments.
Managing Debts, Liabilities, or Credits
The letter identifies how debts, liabilities, and customer credits are managed. Typically, the seller pays their outstanding debts and liability-based payments. The buyer sets up provisions for customer credits and determines if they collect the advance payments from the seller.
Is There a Current Lease Agreement?
The seller must honor an existing lease agreement before selling the practice. An alternative is paying the tenant a fee for breaking the lease. The letter of intent explains how the buyer wishes to proceed if a current lease exists.
In Arizona, a letter of intent is a non-legally binding offer to the seller. It explains the terms and conditions identified by the seller. The seller reviews the letter and negotiates with the buyer. Prospective buyers contact a broker to review a dental practice for sale in Arizona or visit WesternPracticeSales.com for further details right now.