What Happens to Business Contracts When a California Business Is Bought or Sold?
When a California business changes hands, the contracts that keep it running do not always change hands with it. Leases, vendor agreements, customer contracts, and licenses each have their own rules about whether they can be transferred, who must approve the transfer, and who remains responsible afterward. Buyers who assume everything will simply…
Personal Guarantees: When can a California Business Owner Become Personally Liable?
Forming a corporation or LLC is supposed to separate an owner’s personal assets from the debts of the business. A personal guarantee can undo that separation for a specific obligation, and it often happens quietly. Landlords, banks, equipment lessors, and suppliers routinely ask owners of young or closely held companies to sign guarantees, and th…
Why Equal Ownership Creates a Unique Kind of Risk
Two owners who split a company evenly often start out aligned on nearly everything. Over time, though, priorities can diverge, and a business that once ran smoothly with two equal decision-makers can grind to a halt when neither owner is willing to defer to the other. This is one of the most common, and most damaging, problems facing California b…
A Business Partner is Walking Away? How to Protect Your Business
At some point, many California business owners face the same question: what happens when a partner decides to walk away? Whether the departure is amicable or contentious, the remaining owners are the ones left to keep the company running, and the way that exit is handled can determine whether the business survives it intact. Partnerships who unde…
Selling Your Practice to a Private Equity-Backed Group?
Private equity-backed groups have become active buyers of medical practices throughout California. These deals can offer real advantages, including liquidity, administrative support, and a path to retirement. They also come with unique structural and regulatory issues that a traditional practice sale to another physician does not raise. Here, our…
If the Physician at a Solo Medical Practice Becomes Disabled or Dies Unexpectedly, What’s Next?
Running a solo medical practice in California means the entire business often depends on one licensed professional. When that physician becomes suddenly disabled or passes away, the practice does not stop being subject to state law. Family members, staff, and patients can be left scrambling if there is no plan in place. Here, our California busin…
How California Medical Practices can Protect Themselves Without a Non-Compete
Employee non-compete agreements are highly disfavored in California. Indeed, state law (California Business and Professions Code § 16600) holds that non-compete agreements are broadly void, invalid, and unenforceable. For the owners of group medical practices, it is generally impermissible to use a non-compete for a physician. However, there are…
Mergers: Best Practices for Combining Medical Practices in California
Are you preparing to combine two established medical practices in California? Mergers can be complicated. A proactive, detail-focused approach is a must. Lynnette Ariathurai is a business lawyer who has the knowledge and experience needed to help professional practices navigate transitions. Here, our California attorney for buying and selling a b…
Medical Practice Buy-Ins: How to Bring an Associate Physician in as a Partner
Medical practice buy-ins are notoriously complex. If you are preparing to bring in an associate physician as a partner in your practice, it is imperative that you ensure that everything is done properly. An associate physician can make a great partner. The right approach will protect your business interests. In this article, our Fremont business…
Hiring a New Physician: Employment Agreements, Bonuses, etc. in California
Are you a partner in a medical practice? You may be considering hiring a new physician to join the practice. It can be a complicated process in California. There are a number of different considerations that business owners need to consider and address, including employment agreement, compensation terms, and ownership structure. Here, our Califor…