Provided by: Jennifer Kirschenbaum, Esq.
March 3, 2022
I am looking to sell my practice and am working with a broker. How long should I give an exclusive for?
Thanks, Dr. O
I like 6 months. 6 months covers a fall or spring season which is prime time, and allows enough time for a successful sale or evaluation of the talent you've retained and time to make a switch to not lose a whole year if you made the wrong choice and choose to wait it out. Many brokers will start asking for 12months +. Personally, that level of commitment, living with a roommate for a full term, is a bit more than I recommend. Be careful on "tail" provisions too...even if you sign 6 months there is likely a tail period the broker will be entitled to a fee if a deal happens from an intro made by broker.
Good practice dictates not signing with your broker until reviewed by an attorney. Between pricing your fee, tail, terms, etc., lots can go wrong in a broker agreement...I recommend you send for review before signing.