Excluded – Not Included – Items

By Dr. Charles F. Fenton III JD

Much is written about the sale of a medical practice: price, taxes, terms, loans, negotiations and FMV etc; especially on this ME-P by Editor Dr. Dave Marcinko and his team. Excellent thoughts, all! But, little is written about items not purchased.

So, here is a different perspective.

Excluded Items

Items not purchased or “excluded items” often list the personal items of the parties – or of the employees of the parties. Such items would often include:

1. All cash on hand or on deposit;
2. All accounts receivable generated prior to the closing date;
3. All prepaid expenses, utility deposits, tax rebates, insurance claims, credits due from suppliers and other allowances after Closing Date;
4. The personal effects, including but not limited to; photographs, diplomas, uniforms, books, mementos, memorabilia, personally owned art objects and any other personal property owned by them;
5. Life insurance, disability insurance, and disability buy-out insurance on seller;
6. Motor vehicles used in connection with the practice;
7. Any and all tangible and intangible assets used in conjunction with another practice of seller; and
8. All other assets owned by seller other than those specifically described as items purchased.

Assessment

The exact items transferred will often depend upon the prior negotiations of the parties.

For example, the parties may have agreed that the accounts receivable will be transferred with the practice. In such an instance, the accounts receivable will be listed as an item to be purchased.

MORE:

• Determinants of Medical Practice Value
• Opinions of Medical Practice Value
• Boosting Medical Practice Goodwill Value

Conclusion

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Filed under: Practice Management | Tagged: Charles Fenton, FMV medical practice, medical practice appraisal, medical practice sale | 4 Comments »