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Going, going, gone!

Going, going, gone!


With demand for dental practices high, Dean Barker thinks there’s never been a better time to sell

Practice owners with a turnover of more than £700,000 are often delighted when I tell them that demand for their type of practice is at an all-time high and they could achieve within 2% of the asking price – often higher – in less than six months.

They are then even more delighted when I tell them they might not even be charged any commission on the sale.

Mediestates attracts buyers from across the UK and Europe. The buyers registered on our books include corporates and private-equity-backed companies of all kinds who, charged with ambitious acquisition targets and in a financial position to close a quick deal, are actively seeking practices with a turnover of more than £700,000. These buyers join our ‘premier tier buyers’ scheme, which gives them a period of exclusive access to these sought-after practices when they come to market. This enables them to act quickly and negotiate a deal with the seller.

Selling to these buyers can be very quick, as most already have everything in place; often have funding already approved, have specialist solicitors ready to leap into action and know the process inside out. A sale to a premier tier buyer typically takes about four months, rather than the average eight or nine months, to be finalised.

Buyers to suit every practice
Practices with a high turnover are viewed as a good investment by our premier tier buyers, especially if they are associate-led and can, therefore, run autonomously with relatively little input post-acquisition.

Furthermore, they are willing to accommodate a variety of different owner exit plans. Those who wish to sell and leave the practice straightaway will be able to find a buyer as long as it is an associate-led practice and the goodwill isn’t tied up with the principal themselves. Other owners might wish to sell, but stay on in the practice for several years; perhaps remaining clinically involved, but free from the responsibilities of running a practice.

There are buyers out there who will be open to both options: some will even offer the opportunity for owners to become clinical lead across a number of practices, or specialise in an area of interest within the new practice group.

Making the call
When the time comes to sell, practice owners should consider the reach of their brokers carefully. It pays to ensure that buyers know they will have fast access to their target practices when they become available.

Consider too the experience on offer: look for a team that can recognise which buyers will fit certain practices, and that is positioned to help vendors through every step of the process. With experts on both sides, the sale process has the best chance of progressing smoothly and swiftly.

If in doubt, ask about a broker’s track record – when it comes to marketing eligible practices to our premier tier buyers; for example, we consistently get within 2% of the valuation (and often higher). And when the sale goes through with them, we don’t charge our sellers a fee at all.

When opportunity knocks…
There is a world of opportunity awaiting owners of dental practices with high turnover in the current market conditions – even for those who have not been contemplating selling, who perhaps are a while away from retirement and plan to continue as owner for several years yet.

There is an alternative, which is enabling them to achieve a competitive price for their practice and, therefore, a financially secure future.

But it’s more than that. Selling a practice can release principals early from the responsibilities and duties of ownership, and give them the opportunity to take a different path – perhaps pursuing a new specialism, concentrating on the clinical side or even doing something entirely different.

For many, getting back to their roots and no longer needing to worry about UDA targets, compliance, satisfying the CQC, NHS contract reforms and even Brexit is extremely attractive.

It’s good news that, despite all the current uncertainty in dentistry, the demand for high-turnover practices remains extremely fierce. However, it is by no means certain how long this demand will last, so now might be the time for practice owners to maximise the sale potential of their business, reap the rewards and see what other opportunities are out there.

Posted by: Dean Barker 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.
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