Over the past several years, with private equity-backed consolidators coming on the scene, Cleinman Practice Transitions, a sister firm of Cleinman Performance Partners, has been very busy. Indeed, at any given moment, our firm is engaged to facilitate several dozen transactions. These include not only outright divestitures, but long-term succession plans, operating agreements among partners, compensation systems and employment agreements, mergers, and other combinations, as well as a host of other types of transactions. In a nutshell, if there’s a contract involved, we’ve BEEN involved. Experience is the best teacher.

Business transactions are challenging. Each party must be diligent in understanding what they’re getting into. Detailed financials must be assembled, and valuation understood. Gobs and gobs of information must be compiled for the due diligence process. And a host of contracts must be drafted, edited, re-edited, negotiated and executed. Indeed, a transaction with a Private equity-backed consolidator can entail as many as thirty individual agreements and documents. It’s no easy trip…and it’s not for the meek.

But what’s worse, are business relationships that are not well documented. Time and time again we get pulled into situations where the parties have a misunderstanding but never defined how such situations would be handled. Partnerships of any sort, whether formal ownership relationships or less entangled alliances or business relationships, should be well documented and have a clear path to success, and resolution of relationship challenges.

Having completed over three thousand transactions over the past 5 decades, with values ranging from $1.00 to over $ 125 million, our firm is uniquely equipped to help you through this process. We know the questions that will be asked and should be asked. We understand what information will be required and the step-by-step process to completion. Our team is comprised of managers, analysts and attorneys who’ve been there, done that.
Some of you have been courted by a buyer. Some of you have even signed a Letter of Intent…which, by the way, aren’t worth the paper upon which they’re printed. And some of you now know the heartache and frustration that goes into liquidating your asset. While you’re all smart, learning the ropes on your own transaction with a transaction of such value is, to put it mildly, a prescription for challenges at best…and disastrous results at worst.
If you’re contemplating a capital transaction of any sort, it behooves you to speak to experts who can guide you through the process.

Said Dr. B from the Florida panhandle upon closing of the sale of their practice just a week ago:
“We are so relieved and grateful to be at this stage. We absolutely couldn’t have begun to tackle this without your firm’s expertise”

And Dr. P of Dallas shared these comments upon the recent closing of his sale:
“Thanks for guiding us through our journey over the past 21 years. I always believe that one’s biggest blunder is not knowing what we don’t know. I truly treasure our friendship and above all the help that your firm has provided in getting me to a new beginning.”

Transactions of any type aren’t easy. Imagine attempting to provide a comprehensive eye exam before you went to optometry school. For many, that’s what you do when you attempt to go it alone on transactions. You’ve neither the training nor the experience to ensure a successful outcome. Further, properly preparing your practice for transition can make an ENORMOUS difference both in terms of money, future employment, and peace of mind.
If you’re in your fifties and don’t yet have a succession plan in place, give us a call. If you’re in a partnership and don’t have an Operating or Buy-Sell agreement, give us a call. If you’re about to hire an associate and need a contract, give us a call.

We’re happy to discuss your specific situation and provide guidance without obligation.