A letter of intent, commonly referred to as an LOI, is a legally non-binding document that outlines the basic terms of an agreement between two parties before the actual contract. Drafting a letter of intent for the sale or purchase of a dental practice can be legally complex.
The presence of a Los Angeles healthcare attorney can help ensure that your letter of intent is drafted with precision and encourages the finalization of the legally valid contract that follows. They also help you negotiate any of the terms stated in the letter with the other party.
What are some tips to keep in mind?
- Accuracy
It is essential that all the information you supply in the letter is correct and complies with the federal and state laws regarding the purchase or sale of a dentist’s practice. Providing wrong or outdated information can lead to termination of the deal and consequent losses. An attorney can help you draft the letter of intent and ensure that even the most minute details are correct.
- Payment plan
The price of the dentist’s practice should be clearly stated in the letter. Along with this, the payment mode should be specific such as whether it will be a one-time payment or in installments, the applicable interest rates and schedule of payment in case it is the latter, and responsibility of extra expenditure that occurs during the transaction. Your lawyer can help set fair terms and conditions for the transaction.
- Due diligence
Due diligence is an investigation of the practice carried out by the buyer before entering into a legal contract with the seller. The seller is required to disclose the practice’s records and other legal and tax documents as mentioned in the letter, and the buyer carries out a thorough investigation to ensure that no obstacles occur after the contract. A lawyer can help determine which records will be required during the process and carefully review them.
- Professional
The letter of intent should have a formal tone and a professional approach. Avoid the use of slang and informal language. It should be short and straightforward, without unnecessary complexities. A lawyer has drafted several letters of intent for past clients and has the relevant experience to ensure that your letter is appropriate and leads to a legally valid contract.
Seeking a healthcare attorney’s guidance for drafting a letter of intent can significantly make the process simpler for you. They manage all the legal requirements for you and ensure that the stated terms are beneficial for your financial future.
