Deavo
Due diligenceExpert answer · 1 min read

Do a counselling practice’s therapists use contractor or employee arrangements?

Both are common, and a single practice often uses a mix. Ask for each therapist’s written agreement and a plain list of who works which way. The arrangement affects who owns the client relationships, who sets fees and how easily a therapist can leave after a sale.

Ask the owner for a table of every therapist, showing whether they are paid wages, take a share of fees or rent space and bill clients themselves. Then read the agreements. Look at notice periods, ownership of client records, restrictions on working nearby and who handles billing. Your lawyer should review them, since the way work is actually done matters as well as the label.

Next, compare the paperwork with the day-to-day. Who sets the schedule? Who supplies the room, equipment and software? Who decides on fees? Inconsistent answers could mean a mismatch worth raising with your accountant before closing.

Finally, consider retention. Contractors can often step away with limited notice, which makes the practice more fragile. Employees may be more settled, though they bring obligations of their own. Ask each therapist, with the owner’s permission, whether they would stay, and what would change their mind. Their answers tell you more than any contract clause. Keep a written record of what each therapist tells you. If answers change as the sale progresses, ask why. Clear, consistent responses from the whole team are a good indicator that the arrangements are well understood.

Key takeaways

  • Get a list of how each therapist is engaged and read their written agreements.
  • Compare the paperwork with how work, fees and equipment actually run.
  • Ask each therapist whether they would stay under new ownership.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to reduce employee turnover
    bdc.ca·Checked Oct 30, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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