The rising stock market and growing level of private equity have led to a surge in practice sales to corporate groups. However, such transactions often include “deal traps,” which can cost unwary doctors an exorbitant amount of money. Below, practice transition attorney Blake W. Hassan, CPA, JD* explains what to look out for.

Despite the pandemic, the stock market has been reaching new highs lately. And with the supply of private equity surging, corporate groups have been aggressively buying more dental practices these days.

If you’ve been approached by a corporate buyer, you may have been offered what sounds like an unbelievably high sales price. Don’t get so mesmerized by “the number” that you don’t perform the due diligence to properly evaluate the true economics of the deal. Otherwise, you may...