Business, 09.09.2019 22:30 akiib

An elderly physician has built up his own practice into a quite valuable business. now that he is thinking of retiring, he wants to take on a partner to learn the business and eventually buy the practice in three years. her compensation will be a salary plus 25% of the profits if they are below the historical average and 50% for any increase above the historical average. the eventual purchase price for the practice will be 5 times the average profits over the three years. discuss the efficiency aspects of such a contract. are the incentives of the buyer and seller aligned?

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An elderly physician has built up his own practice into a quite valuable business. now that he is th...

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