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Buying a Medical Practice in California? Know the Difference Between Purchasing the Business and Purchasing the Assets

The California Health Care Foundation reports that approximately 75,000 physicians are in active practice in our state. Are you a doctor who is considering buying a group medical practice? It is crucial that you ensure the transaction is structured properly. You could buy the entire business or, potentially, you could purchase its assets. Here, our California business law attorney explains the key points to understand about the differences between purchasing the company and purchasing the company’s assets.

What Does it Mean to Purchase a Business?

Purchasing a business means acquiring the entire company, including all its assets, liabilities, and operational responsibilities. As the buyer, you effectively step into the shoes of the previous owner. You get the medical practice and its existing contracts, but you also take on its debts, and legal obligations. Comprehensive due diligence is especially important when buying an entire medical practice.

What Does it Mean to Purchase the Assets of a Business?

Purchasing the assets of a business involves buying specific assets without acquiring the company itself. In an asset purchase, you select which assets to acquire—such as medical equipment, patient relationships, and intellectual property—while generally avoiding the company’s liabilities. However, you cannot assume the company’s contracts or the goodwill it has built.

Choosing the Best Option for Buying a Medical Practice in California

Pros of Buying a Business

Seamless transition: Acquiring the entire business allows for uninterrupted operations, minimizing disruptions for patients and staff.
Retention of contracts: Existing agreements—such as insurance provider contracts and leases—run with the business itself.
Established reputation: Goodwill matters. You inherit the practice’s brand identity and patient goodwill.

Cons of Buying a Business

Assumption of liabilities: You take on all the business’s debts and legal obligations, including any undisclosed or contingent liabilities.
Complex due diligence: Thorough investigation is required to uncover financial, legal, and regulatory issues, which can be time-consuming and costly.
Regulatory compliance challenges: Navigating California’s healthcare regulations for ownership transfer can be complex.

Pros of Buying the Assets of a Business

Selective acquisition: You can choose specific assets to purchase, allowing you to exclude unwanted equipment or obligations.
Reduce liability risk: As a rule, you can avoid assuming the seller’s liabilities, reducing your exposure to potential legal and financial risks.

Cons of Buying the Assets of a Business

Operational disruption: Transferring assets may necessitate re-establishing contracts, obtaining new licenses, and renegotiating insurance provider agreements.
Patient continuity concerns: You may face major challenges in retaining patients, as transferring medical records requires patient consent under privacy laws.

Speak to Our California Business Lawyer Today

Lynnette Ariathurai is a business attorney with extensive experience working with owners of medical practices. If you are considering buying a medical practice, we are here to help. Call us now or contact us online to arrange your confidential, no obligation consultation. From our Fremont office, our firm works with medical practices throughout the Bay Area.

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What to Know About the Upcoming BOIR Federal Filing Deadline in California

On January 1st, 2021, the Corporate Transparency Act was signed into law. The law official took effect on January 1st, 2024. Notably, it requires existing entities—companies that existed prior to 2024—to file their initial BOIR (Beneficial Ownership Information Report) by January 1st, 2025. An important deadline is approaching. It is crucial that business owners in California are prepared. In this article, our California business lawyer provides a comprehensive overview of the key things to know about the upcoming BOIR federal filing deadlines.

What is a BOIR Filing?

As explained by the Financial Crimes Enforcement Network (FinCEN), a Beneficial Ownership Information Report (BOIR) is a filing mandated by new federal law (the Corporate Transparency Act.) It requires certain corporations, limited liability companies (LLCs), and similar entities to disclose information about individuals who directly or indirectly own or control them. The report includes details such as the beneficial owner’s name, date of birth, address, and identification number from an acceptable document like a driver’s license or passport. The initiative aims to enhance transparency and combat illicit financial activities by preventing the misuse of shell companies.

Access to the form: Beneficial Ownership Information Report (BOIR)

Who Needs to File and Why?

The new rule requires entities that file articles of incorporation or articles of organization—or the equivalent—with any state secretary of state to register beneficial ownership information with FinCEN. A “beneficial owner” is defined as anyone who owns 25 percent or more of the company or has significant control as a decision-maker. Documentation needs vary:

U.S. citizens/green card holders: State-issued driver’s license or U.S. passport.
Foreign citizens: Valid documentation from their home country.
Entity owners: Appropriate ownership documentation for each company.

Know the Filing Deadlines and the Penalties

The deadlines for compliance depend on when your entity was formed:

Entities created before December 31, 2023: Must file by December 31, 2024.
Entities formed on or after January 1, 2024: Must file within 90 days of formation.
Entities formed on or after January 1, 2025: Must file within 30 days of formation.

What are the penalties for a BOIR violation? Noncompliance carries steep financial sanctions: $500 per day. You can avoid these fines with a timely, accurate filing.

We Handle BOIR Compliance for Companies in California

Navigating these requirements can be complex—especially since BOIR requirements are new to business owners. You do not have to handle the filing on your own. Lynnette Ariathurai can help. Attorney Ariathurai will ensure your compliance with federal law. Among other things, this includes determining whether your entity qualifies for an exemption, clarifying beneficial ownership criteria, and submitting an accurate, properly supported BOIR filing for your business entity.

Get Help From Our California Business Law Attorney Today

Lynnette Ariathurai is a top business attorney. If you have any questions about the BOIR federal filing requirements, we are here to help. Call us now or contact us online for a confidential consultation. With an office in Fremont, our firm represents businesses throughout the Bay Area.

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Discrimination Policy Lawyer for Business

We Draft and Review Anti-Discrimination Policies for Businesses in California

Lynnette Ariathurai is an experienced discrimination policy attorney for businesses in California. As of 2016, all companies and organizations with five or more employees are required to draft and distribute a legally compliant anti-discrimination policy. The right discrimination policy can help to prevent claims and reduce your risk of liability if an issue does arise. Contact us at our Fremont law office today for a confidential consultation with a California discrimination policy lawyer.

Know the Law: California has Strong Anti-Discrimination Provisions

California has strict anti-discrimination requirements for businesses. As explained by the California Civil Rights Department, our state’s Fair Employment and Housing Act (FEHA) applies to businesses and organizations with five or more employees. The law in California prohibits discriminatory practices in the workplace based on several different protected characteristics, including:

Race
Color
National origin
Sex
Gender
Sexual orientation
Gender identity
Age (40 plus)
Disability status
Medical conditions
Pregnancy status

Note: FEHA prohibits employers from retaliating against a worker who raises a complaint of discrimination. Any complaint must be taken seriously by employers—even if not well-supported.

Employers Must Distribute Written Anti-Discrimination Policy

In 2016, California changed its workplace regulations. Employers that are covered by FEHA—those with five or more employees, including part-time workers—must write and distribute a legally compliant anti-discrimination policy that meets the requirements of 2 CCR §11023. The policy should clearly confirm an employer’s commitment to preventing discrimination, harassment, and retaliation. Among other things, a written workplace anti-discrimination policy should highlight the law and provide basic complaint procedures for affected employees.

Your Anti-Discrimination Policy Should Be Drafted by a Lawyer

No employer wants to face liability from a discrimination claim. Indeed, preventing discrimination complaints from employees is highly desirable. The right (written) anti-discrimination policy can make a big difference. Professional expertise is a must. Employers should consult with an employment lawyer who can ensure that the policy is properly drafted and that it complies with all the requirements of FEHA and other laws/regulations in California. Your attorney can also tailor the policy to the specific needs of your business or organization.

How to Handle an Employee’s Discrimination Complaint (Be Proactive)

Even the best anti-discrimination policy cannot guarantee that no employee complaint will ever arise. Employers need to be ready to accept a complaint, independently investigate the allegations, and develop a defense strategy. There is no one-size-fits-all response to a worker’s discrimination complaint and/or harassment complaint. While these cases are generally best resolved before a lawsuit is filed, employers need to be prepared to fight aggressively to protect their interests.

Contact Our California Business Lawyer for Help with an Anti-Discrimination Policy

Lynnette Ariathurai is a business law attorney who helps companies prevent and resolve discrimination complaints. If you have any questions about writing an anti-discrimination policy, we are here to help. Contact us today for your confidential initial consultation. With an office in Fremont, we help businesses draft discrimination policies throughout the Bay Area including San Jose, San Mateo, Hayward, and Newark.

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Considerations When Buying a Veterinarian Practice

Are you considering purchasing a veterinary practice in California? Whether you are looking to take over that practice or you are interested in merging with an existing veterinary practice, it is crucial that you take a proactive approach. Lynnette Ariathurai is committed to providing solutions-focused business law services to veterinarians. Here, our Fremont business lawyer for veterinarians highlights considerations to keep in mind when buying a practice in California.

Know How to Structure the Purchase Agreement

One of the first considerations when buying a veterinary practice in California is determining how to structure the business. Broadly speaking, buyers and sellers have two main options available:

Stock purchase: A stock sale involves buying the seller’s shares, resulting in the full and outright ownership of the entire business—including both its assets and liabilities.
Asset purchase: An asset sale involves buying individual assets of the practice, such as equipment or client lists. It does involve buying the entire professional practice.

Put a Strong Emphasis on Due Diligence

Before purchasing a veterinarian practice in California, it is crucial that you conduct thorough due diligence. Due diligence is the comprehensive appraisal of a business undertaken by a prospective buyer to evaluate its assets, liabilities, and commercial potential. Some key issues that should be addressed during the due diligence process include:

Location: An office lease for veterinarians is a very important issue. You should evaluate the practice’s location to determine its potential for growth and accessibility.
Licensure: Veterinary practice is highly regulated. You should have a full understanding of the requirements of theCalifornia Veterinary Medicine Practice Act.
Liabilities: You need to know what are the taxes owed, what existing contracts are in place, and any potential claims against the practice—from an employee or otherwise after closing.
Equipment: What type of equipment comes with the practice? Be sure to inspect the condition and value of the equipment to ensure it meets modern veterinary standards.
Employees: Human capital matters. Potential buyers should review employee contracts and qualifications to understand the team’s stability and expertise.
Clients: Finally, you should assess the vet’s client base to gauge loyalty, satisfaction, and the potential for future business growth.

Prepare for Operating a Veterinary Practice

Acquiring a vet practice in California is a complicated endeavor. Setting yourself up for success goes beyond the purchase agreement and due diligence. Prospective vet practice owners should be ready to manage legal requirements, operational logistics, and client relations. Some key considerations to prepare for the operation of a veterinary practice include:

The Transfer of an existing license in compliance with the California Veterinary Medicine Practice Act;
The Transfer of key vendor, customer, leases and other contracts necessary to operate the practice;
A decision on which employees to retain, including their compensation and benefits; and
A timely notice to clients and their consent to transfer of pet medical records in compliance with all applicable laws and regulations in California.

By addressing these key areas and other legal matters, you will lay the groundwork for a strong transition. Proactively managing licensing, contracts, and personnel matters help to ensure operational continuity. Beyond that, clear communication with clients about changes can help you keep them satisfied with the business. An attorney can help you prepare for operations.

Get Help from Our California Business Attorney for Veterinary Practices Today

Lynnette Ariathurai is a business lawyer with extensive experience working with veterinarians. If you have any questions about the process for buying a veterinary practice, we are here to help. Call us now or contact us online to arrange your strictly confidential consultation. From our Fremont office, we provide business services to veterinary practices throughout the Bay Area.

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Legal Needs in Setting Up a Successful Nursing Company in California

Nursing is one of the most high-demand professions in the Bay Area. CalMatters estimates that there is currently a shortage of 36,000 nurses in our state—and that number is growing. If you are considering setting up your own nursing company in California to help address the need, it is imperative that you have the right structure in place. Here, our Fremont business law attorney discusses your legal needs when setting up a successful nursing company in California.

A California Nursing Business Needs a Strong Legal Foundation

Nurses are licensed, regulated professionals and a nursing company must be established with the proper legal structure. Notably, in California you cannot form a nursing business as a limited liability company (LLC), a partnership, or a corporation. Instead, you must form a Nursing Professional Corporation. You may hear this referred to as a PC.

A PC for nursing is a specialized type of entity that allows registered nurses (RNs) to provide their professional services through a corporation structure. It offers some key advantages, including liability protection and the ability to elect to be taxed as an S-corporation (pass-through taxation). Several types of medical professionals may own a stake in a nursing business in California. However, licensed nurses must always have a minimum 51 percent total ownership share.

Requirements to Form a Professional Nursing Corporation in California

A group nursing business will generally be set up as a PC in California. There are specific legal requirements that must be met to form a valid professional nursing corporation. More specifically, you and any co-owners in the nursing company must be sure to do the following:

Select a name (which must include “nursing”)
Draft and file articles of incorporation
Develop corporate bylaws for the PC
Register the PC with the Nursing Board

Developing the Right Strategy for a Successful Business in the Nursing Field

Meeting the basic legal requirements to set up a PC for a nursing company in California is certainly not sufficient to build a successful business. You need a comprehensive strategy. Here are other important legal/business issues that must be addressed when forming a nursing PC:

Ensure that you and any partners have the right ownership structure in place
Develop a compensation plan for your nursing PC
Secure and Employer Identification Number (EIN) from the IRS
Obtain adequate professional liability insurance coverage
Consider what types of contracts your PC will need to draft/enter
Proactively comply with all regulations from the California Board of Registered Nursing
Consider tax implications (may be taxed as S-corporation or C-corporation)

Contact Our Bay Area Business Attorney for Nursing Companies Today

Lynnette Ariathurai is a business lawyer with more than three decades of experience. If you have any questions about the legal needs of a nursing company in California, we are here as a resource. Call us now or contact us online for your confidential initial appointment. With an office in Fremont, we provide business law services to nursing companies throughout the Bay Area.

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Veterinarian Malpractice (Holding Vets Accountable for Professional Negligence)

As licensed professionals in California, veterinarians can be held liable for malpractice. It is a risk that needs to be considered along with the range of different considerations that need to be addressed—from the compensation structure to an office lease to making preparations for defending the business when something might go wrong. Within this article, our Bay Area business attorney for veterinarians highlights key points business owners should know about professional malpractice claims—and your options to protect your practice—in California.

What is Veterinary Malpractice?

Veterinary malpractice occurs when a veterinary professional fails to provide the standard of care expected in the treatment of an animal, leading to injury, worsening of a medical condition, or even death. Some of the most common examples of veterinary malpractice include misdiagnosis, incorrect treatment, rough handling of a pet, and negligence in surgical procedures.

All Veterinary Practices in California Need Adequate Insurance Coverage

The reality is that malpractice is a risk that business owners operating veterinary practices need to be prepared for. Even the best and most thorough of veterinarians cannot completely eliminate the risk of facing a malpractice claim. All veterinary practices in California should secure adequate insurance coverage to protect against malpractice claims and other risks. As explained by Veterinary Practice News, “veterinarians commonly purchase professional liability (malpractice) insurance to guard against the expense of defending against such claims.”

Steps to Take When Handling a Professional Liability Claim

Is your veterinary practice facing a professional malpractice claim in California? A proactive approach is a must. You do not want to run into problems—from a business perspective and/or a legal perspective. Here are four steps to take when facing a malpractice allegation:

Notify Your insurer: As soon as a potential veterinary malpractice claim arises, promptly notify your insurance provider to activate your professional liability coverage. Prompt notification is often required by a malpractice policy.
Gather information: The next step is to collect all relevant documentation related to the case, including medical records, treatment notes, and any correspondence with the pet owner. Detailed, organized information will help to build a defense.
Watch for complaint: Beyond any malpractice claim, a veterinarian may face a complaint before the California Veterinary Medical Board. Be sure to watch for complaints and to respond to any allegations proactively.
Develop a plan of action: Finally, veterinary practice owners should work closely with insurers and consult legal counsel to develop a strategic plan of action tailored to the malpractice claim.

Get Help from Our Bay Area Business Lawyer for Veterinarians Today

Lynnette Ariathurai is a solutions-focused advocate for business owners. If you have any specific questions or concerns about veterinarian malpractice protection, we are here as a legal resource. Contact us today for a confidential initial consultation. With an office in Fremont, our firm provides business services to veterinary practices throughout the Bay Area.

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Legal Considerations When Closing a Veterinarian Practice

Are you preparing to close a veterinarian practice in California? It is crucial that you take a proactive, detailed, focused approach. You need to comply with all state regulations and wind down your professional practice in an orderly manner so that you can best protect your financial interests. In this article, our Bay Area business lawyer for veterinary practices provides an overview of the legal considerations for closing this type of business.

Consideration #1: Regulatory Compliance

In California, there are regulatory requirements in place for winding down a business. Typically, the law requires business owners—including veterinary practice owners—to file the proper dissolution documents with the California Secretary of State for corporate practice and to notify all implicated parties, including clients, vendors, suppliers, and creditors.

Note: Proper disposal or transfer of controlled substances—in accordance with federal and state regulations—is also essential to prevent legal issues and ensure public safety.

Consideration #2: Employment Law

Veterinary practices should address labor and employment issues when closing their business, including plant closure laws. Try to keep your staff in the loop. Among other things, you will need to provide timely notice, handle the final paychecks and, potentially, manage employee benefits. Proper handling of employment law matters can help to prevent claims from employees.

Consideration #3: Client Communication and Client Records

A veterinary practice’s clients must be notified about the business closing. The California Veterinary Medicine Practice Act imposes certain communication/record requirements for professional practices that are winding down. Specifically, these duties include:

Notification to clients: Veterinarians are required to notify clients in a timely manner about the practice’s closure. The notification allows your clients to make alternative arrangements for their animal’s care.
Transfer of records: The veterinarian must ensure that patient records are appropriately transferred to another practitioner or returned to the client, as per the client’s wishes. Be sure that records are handled properly.

Consideration #4: Contractual Obligations

Does your veterinarian practice have any existing contractual obligations? Be sure to identify and resolve them. For example, seemingly simple things such as an office lease for a veterinary practice or SBA loan, must be proactively addressed. You do not want to face a breach of contract claim following the closure of your business.

Consideration #5: Finances and Taxes

When closing a veterinary practice in California, it is crucial to thoroughly manage all outstanding financial obligations, including settling debts with suppliers, creditors, and any service contracts to avoid legal complications. Beyond that, the practice must file final tax returns and, in doing so, declare the closure of the business.

After all debts and obligations have been paid, you can distribute the remaining assets among the owners of the veterinary practice in accordance with the ownership structure and/or operating/partnership agreements.

Set Up a Consultation with Our California Business Lawyer for Veterinary Practices

Lynnette Ariathurai is a top-tier business law attorney for veterinary practices. If you have any questions or concerns about the legal considerations when closing a veterinary practice, please do not hesitate to contact us for a completely confidential initial consultation. From our Fremont law office, we provide business services to veterinarian practices across the Bay Area.

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Merging Veterinarian Practices – What to Expect

Do you own and operate a veterinary practice in the Bay Area of California? Are you considering merging with another practice? Doing so may be a great opportunity to create business synergies and to grow your practice. At the same time, you need to be properly prepared. Mergers are complicated—especially for professional practices. Here, our Bay Area business attorney for veterinary practices highlights key things to know about merging veterinarian practices in California.

The Foundation of a Merger: Comprehensive Due Diligence

A business merger is the combination of two or more companies into a single entity. In California, merging veterinary practices must begin with comprehensive due diligence. Among other things, the due diligence process typically involves:

A detailed assessment of financial records
A comprehensive review of client databases
An assessment of human capital, including any employee contracts and benefits
Evaluation of all existing legal obligations for each practice
An understanding of compensation structures within the veterinary practice

Notably, the core purpose of due diligence is to uncover all potential risks and liabilities. It will help veterinary practice owners to consider the feasibility—and desirability—of the merger. Due diligence also typically includes reviewing each practice’s equipment to assess compatibility, vendor and customer key contracts.

Develop a Plan for Veterinary Practice Integration

Developing a strategic integration plan is crucial for merging veterinary practices successfully in California. The plan should outline how to combine operations, staff, and services in a phased approach to minimize disruption. Key elements often include aligning veterinarian medical protocols, unifying software systems, consolidating suppliers, and determining staff roles and responsibilities.

Be Prepared to Identify and Take Advantage of Operational Synergies

Successful mergers capitalize on operational synergies that will enhance efficiency and reduce costs. For veterinary practices in California, this might involve consolidating purchases to leverage better pricing, merging client lists to expand the customer base, and integrating technological resources to improve service offerings. In some cases, a merged veterinary practice may be able to share an office lease. Ultimately, the goal is a more efficient single veterinary practice.

Proactively Communicate with Clients (Transparency is Key)

A veterinary practice in California is only as strong as its relationships with its clients. Client acquisition can be expensive. It is crucial that the merging practices can continue providing high quality service to existing clients. Among other things, this means putting an emphasis on proactive communication. Transparency helps maintain trust and manage client expectations. You will need to obtain clients’ informed consent about the upcoming changes and make sure that they understand how they will benefit from improved facilities, expanded services, and/or better availability. If clients do raise concerns, be sure that they are addressed promptly.

Understand and Comply With all California Regulations

Navigating regulatory compliance is essential for veterinary practice mergers in California. This includes following all requirements of the California Veterinary Medicine Practice Act, local business licensing requirements, and relevant labor/employment laws. Compliance with these regulations is an absolute must when merging veterinary practices. A business lawyer with experience working with veterinarian practices in California can help.

Contact Our Fremont, CA Business Lawyer for Veterinary Practices Today

Lynnette Ariathurai is a business attorney with extensive experience working with veterinary practices. If you have any questions or concerns about merging a veterinarian business, we are here to help. Contact us today for a confidential initial consultation. From our Fremont law office, we provide business services to veterinary practices across the Bay Area.

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Legal Considerations When Entering Partnership in a Construction Company

Construction is a booming industry in California. There are many opportunities for businesses. You may be considering expanding your efforts in the industry by purchasing a construction company or entering a partnership. Before you enter partnership in a construction company in California, there are key things that you should know. In this article, our Fremont business lawyer for construction companies highlights the most important legal considerations to keep in mind.

Determine the Specific Legal Entity for Your Business

Any entrepreneur who is forming a business in construction in California must ensure that they have the right legal structure (entity) in place for their specific situation. Notably, general partnerships (GPs) in California can be established without formal state registration. A written agreement is strongly recommended for general partnerships. However, GPs do not offer liability protection and may not be the best option for a construction business. A construction company in California may also be set up as a limited liability company (LLC), S-corporation, or c-corporation.

Essential Considerations for Your Construction Partnership

Are you preparing to form a construction partnership in California? A proactive approach is essential as there are several legal considerations that need to be addressed for partnership businesses in the construction industry, including:

Partnership agreement/joint venture agreement: A well-crafted partnership or joint venture agreement sets clear expectations for all parties involved in the business or business project.
Contributions/equity: Each partner’s contribution to the partnership, whether in the form of capital, resources, or expertise, must be clearly documented and agreed upon.
Roles/responsibilities: Defining roles and responsibilities is vital to ensure that all aspects of every project are covered. It is crucial that each partner knows their duties.
Legal and regulatory compliance: Partners must be aware of and comply with all local, state, and federal rules, including obtaining required licenses and any necessary permits. Notably, you need a CSLB Contractor’s License to start a construction company in California.
Insurance coverage: Securing comprehensive insurance coverage is crucial for mitigating risks associated with construction.
Dispute resolution: Construction partnerships can run into issues. Establishing a method for dispute resolution can save partners a lot of time, money, and headaches.

Be Ready to Seek Professional Legal Guidance and Support

Setting up a construction company in California is not easy. It is normal to have a ton of questions about how your business should be formed and what steps must be taken to protect your financial interests and satisfy all legal requirements. A California business lawyer with experience working with companies in the construction industry can help you navigate complex legal considerations.

Get Help From a Fremont, CA Business Law Attorney for Construction Companies Today

Lynnette Ariathurai is an experienced California business lawyer with the skills and experience to represent companies in the construction industry. If you have any questions about the legal considerations when entering partnership in a construction business, please do not hesitate to contact Lynnette for a confidential consultation. She represents businesses across the Bay Area.

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Merging Veterinarian Practices – What to Expect

Are you a veterinarian in California who owns a practice and is preparing to expand or transform it? Building a group veterinary practice is complicated. You may be considering merging your professional practice with another existing business. Here, our Fremont business lawyer for veterinary practices highlights what you should expect if you are preparing to merge veterinary practices in California.

Background: Understanding What it Means to Merge Veterinary Practices

Broadly defined, a merger is the combination of two businesses into one. Merging veterinary practices involves integrating two (or more) existing clinics or veterinarians into one practice. It may be a complex business transaction. It is crucial for practice owners who are considering/preparing to merge their businesses to align goals, standardize care protocols, effectively communicate changes to both staff and clients, and ensure that their best financial interests are protected.

Know What to Expect: Consider Synergies, Logistics, and Risks

Merging veterinarian practices in California? You need to know what to expect—especially as it pertains to the synergies, logistics, and potential risks. Here is an overview of some key issues to keep in mind:

Ownership: You will need to determine the precise ownership structure of the newly created business. Among other things, this includes determining each partner’s equity stake and the compensation structures for the veterinary practice.
Office space needs: Evaluating the adequacy of current office spaces is essential. A merged practice may require additional space or restructuring of an ongoing commercial lease. Alternatively, you may be able to effectively share space and reduce costs.
Employees: Integrating employees from merging practices must be managed with clear communication and a transparent transition plan.
Branding: A unified branding strategy is critical post-merger to ensure consistency across all service points. How exactly you should merge your branding depends on several situation-specific factors.
Insurance coverage: Mergers necessitate a thorough review of existing insurance policies to consolidate coverage and eliminate any overlaps or gaps. Post-merger, you may be able to reduce your total insurance costs.
Existing contracts: All existing contracts—from commercial leases to vendor/supplier agreements—should be reviewed to ensure they remain beneficial.
Outstanding liens: It is imperative to resolve any outstanding liens on either practice before the merger. Once a merger is complete, the new business will generally be liable for all the outstanding debts, obligations, and liabilities of the previously existing veterinary practices.

A business merger can be complicated—especially so when you are dealing with veterinary practices. You do not have to figure out everything on your own. A California business lawyer can help you understand your rights, your options, and ensure a smooth transition.

Contact a Fremont, CA Business Lawyer for Veterinary Practices Today

Lynnette Ariathurai is a California business attorney with extensive experience representing veterinary practices. If you have any questions about what to expect when merging a veterinarian practice, she is here to help. Contact Lynnette today for a completely confidential initial consultation. From her Fremont law office, she works with veterinary practices throughout the Bay Area.

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