PA Professional Practice Succession

Pennsylvania professional practices (law, medicine, dentistry, accounting) face succession constraints that don't apply to ordinary businesses.

Licensing

Only licensed professionals can own equity in the practice. Heirs can receive proceeds, not equity.

Goodwill valuation

Practice goodwill is often the largest asset. Valuation methods vary by profession and state.

Buy-in / buy-out

Build the succession into the partnership or shareholder agreement. Use term life insurance to fund payouts at death.

Wind-down option

When no successor exists, a planned wind-down — collecting receivables, transitioning clients, selling assets — preserves more value than abrupt closure.