How to Find a Partner

Finding The Right Practice Partner

Lewis and Clark, Sears and Roebuck, Ben and Jerry, Warner Bros. These names quickly conjure up images of success ibut t’s easy to forget that these teams started out with nothing more than a dream.   Finding a partner to help build your business is no easy task. A good practice partner shares your ethics, vision and enthusiasm, bringing strengths to your weaknesses.  It's someone who udnerstands the responsibility of ownership and has the ablity compromise and work as a team player.  Most importantly, partners should get a long with each other.

Partnership Basics

Parterships can consist of 2 or more owners.  Each owner has a precentage of ownership in the business.   Partnerships should always be in writing and should have an agreement that outlines the the owner's rights; outlines events of termination; valuation methods; and provides for exit strategies.  Additional things that should be out in writing are partner responsibilities and compensation.

Happiness

Well written agreements make for happy partnerships.  Having a document that all parties can reference helps avoids those memory lapses years later

Pros and Cons of a Partnership

Is bringing on a partner the best way to grow your business? Weigh the pros and cons of partnership.  Owners seek partners for a variety of reasons including life style, business expertise, technical skills or even capital (money).  Every partner must weigh the reasons for bringing in a new owner and recognize that partnerships are much like marriages.  All partners should have the same vision and goal.  If one partner wants to re-invest in the practice and the other simply wants to take out the profits --well that could spell a dispute.  In fact you'll most likely spend more time with your business partner then your spouse or family. Partnerships also mean that all liabilities are equally shared by all owners.  While there are several business entities that will limit owner liabilities, most suppliers, lenders and landlords will still require personal guarantees of all the major owners. Every owner must recognize that they could be liable for any actions incurred by another partner or owner.  (This includes loans, payroll taxes, income taxes, bank deposits, credit card receipts, etc)

What's My Exit Strategy?

If you have owned a practice for years and are planning to retire in less than 5 years a partnership may not be right for you.  Are you willing to re-invest in longer term capital improvements even if you leave earlier?  If your desire is simple to ease back on your duties other options such as bonus programs for employees or outright practice sales with extended seller employment agreements might acheive the same result.

How do I find the right person? 

Is there a doctormatchmaker.com out there somewhere?

There no magic or science to finding the right partner.  Often it could takes months or years. Most advisors suggest that owners hire a person as an employee and "date" for up to six months.  This allows everyone to determine if it is a fit.  The hiring phase can include an at will employment agreement. It can also outline terms of a partnerships buy-in after the honeymoon period.  (i.e.the new partner may wan tto value the practice and determine the buy in price prior to investing time workng at the office.