Once a buyer and seller have agreed on a price, they are both eager to finalize the sale. Each party is ready to begin a new life. This makes the buyer extremely eager to begin working in the practice. Sometimes, the seller is happy to have the buyer help run the practice. However, there are lots of details to work out before closing. This can be a tense time for all concerned since it means a dramatic change for both parties.
It can and sometimes does drag on for months. Usually, this is due to the time it takes to get buyer financing. We find that once the buyer is actively working in the practice he or she is no longer in such a hurry to finalize the sale.
Problems can quickly develop with employees, who don’t have a clear idea of who is in charge. The new buyer is often eager to initiate new ideas and changes, some of which may conflict with current management. The resultant upheaval and confusion in the staff can lead to severe problems.
Occasionally a buyer may begin to question the purchase. The seller might start to doubt the ability of the buyer to run the practice.
For all the above reasons and many more, having the new buyer work in the practice before the closing of the sale should be avoided if at all possible.
