58: Practice Sales: The Role of Escrow

What role does escrow play in a dental practice transition? How does it benefit buyers and sellers alike? Should you use an escrow for your practice sale?Matt Odgers is a Dental Attorney with Odgers Law Group and VP of Business Development and Legal Operations with Practice Orbit.Matt has more than a decade of experience representing hundreds of dentists in the process of buying or selling a practice.On this episode of the podcast, Matt joins host Wes Read to discuss the purpose of escrow in a private practice sale, beginning with the financial security it affords sellers.Matt and Wes explain why buyers have a larger representation when an escrow is involved and how it significantly increases the probability of closing the deal.Listen in to understand how an escrow agent helps move a dental practice transaction forward and learn when you can avoid using escrow vs. when it is necessary to protect you in a dental practice sale.Topics CoveredWhat inspired Wes & Matt’s podcast series on dental practice transitionsHow Practice Orbit simplifies the dental practice sale processHow using an escrow affords dental practice sellers financial securityWhy the buyer has larger representation when an escrow is involvedWhy Wes & Matt are advocates of earnest money in the escrow processHow escrow instructions should be built into the letter of intent How an escrow significantly increases the probability of closing a dealThe escrow agent’s role in moving a dental practice transaction forward How an escrow statement makes things easier from an accounting, tax and legal standpointWhen it makes sense to hold back a percentage of the purchase price in escrow (and release it to the seller after certain conditions are met)When you might avoid using an escrow in a dental practice saleConnect with Matt OdgersOdgers Law GroupEmail [email protected] with Wes ReadPractice OrbitEmail [email protected] CFOPractice CFO on InstagramPractice CFO on FacebookPractice CFO on YouTubeResources What You Need to Know About Submitting an LOI on DPS EP003Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004Episode Promo Videos Video Promo 1Video Promo 2