Safeguard Your Practice's Most Valuable Asset: Goodwill
Date: October 2, 2009
Co-Author: Philip M. Bogart, Esq.
The majority of the value of any dental practice is based on the goodwill of that practice. However, goodwill is not like a lab chair, air compressor, or panorex. Goodwill is the intangible value of a dental practice, based on the reputation of the practice as a whole and its individual professionals, staff, and physical plant. Patients and those who refer patients (usually other dental specialists, other patients, or family members) develop relationships with the practice through its dentists, staff, and the “feel” of the physical plant.
Goodwill should be protected legally. Specifically, a dental practice should develop well-crafted agreements and policies, including 1) non-competition agreements, 2) non-solicitation agreements, 3) non-disclosure (or confidentiality) agreements, 4) employment agreements, and 5) employee handbooks.
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