HS Financial Services - Financing a Dental Practice Purchase: An Overview
Financing a Dental Practice Purchase: An Overview

Financing a Dental Practice Purchase: An Overview


Purchasing your own dental practice is arguably one of the most rewarding stages of your professional life. Not only will you have complete flexibility and freedom with running your own business, but by providing health care and cosmetic treatments you are also helping your local community.


Whether you are looking to buy your first – or next – dental practice, the decision is a huge financial commitment. It’s normal to feel overwhelmed if you’re not familiar with the buying process, and we therefore highly recommend consulting with experienced financial brokers specialising in the dental industry, who will be able to smoothly guide you through each key phase of buying a practice.


Planning Early Is Key

For Associates who aspire to become a dental practice owner, you will be glad to know the banks are very positive about dentistry and can typically offer generous terms to first-time buyers, for both NHS and private practices. That said, most dental practice sales are “fundable”, but the key is thorough planning and preparation to present lenders with a detailed proposal and business plan.


Ultimately, most lenders will offer finance on an unsecured basis and therefore need to feel confident you have the skills and financial ability to pay back the loan. As you prepare your business plan, remember to include details of the practice (including business aims and objectives), accounts for the last 3 years, proposed working arrangements, staffing levels and opening hours.


What Lenders Assess

While banks have varying criteria for lending, most lenders will require a cash deposit from the purchaser. On average, banks are looking for a 10% to 25% deposit. Lenders do look at each case on its own merits and 100% lending may even be available in the right circumstances. First-time buyers need to prove that they have a minimum of two years’ experience managing or being an associate in a UK practice.

As a quick round up, here are some factors that are taken into consideration:

- Your expenditure to consider income required to take from the target practice

- Your overall career in dentistry and experience in managing a practice

- How you manage your personal finances and any savings

- Your living situation

- Your ability to repay the loan


Working With a Specialist Finance Broker

You are probably aware of the benefits of working with specialist dental accountants and solicitors, and the same can be said when buying a dental practice too. A specialist broker will have the knowledge necessary to offer independent advice and search for lenders on your behalf – saving you time and stress.

In fact, here at Henry Schein Financial Services, we have access to healthcare specialists within the banks to help secure the best rates (approaching banks independently limits you to a general “business department”). Once you have the relevant documentation in place to purchase a practice, we will negotiate the terms that best suit your specific needs and budget since we understand the different structures that lenders look for. With the support of a financial consultant who understands the current and ever-changing market, you can ensure that the purchase of your prospective practice represents the best value for money.


If you'd like to know more, please do not hesitate to get in touch. 


Posted by: Kimberly Parker on

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
Your shortlist contents will be included in this contact submission