Prepare your practice for a private equity transaction

The practice should review information technology hardware and software systems, update, upgrade or replace as needed, confirm that it has all necessary software licenses and ensure workers are properly trained on the latest software. Issues such as management decisions, retirement buyout formulas, termination provisions, restrictive covenants (such as noncompetes), shareholder/owner compensation and distribution formulas for a capital transaction (such as a sale event) should all be carefully reviewed and discussed with experienced legal counsel. Is the retirement buyout still payable if the retiree competes? * Are owners fairly compensated for the professional and administrative services they perform? * Are owners responsible for recoupment actions by thirdparty payers related to their coding and billing practices? * Are the company documents clear about how proceeds will be distributed in the event of a sale? * Are the documents clear about how much notice must be given by a retiring owner, whether that owner can enter a wind-down phase prior to retirement and, if so, what that means in terms of voting rights, etc.?