HS Financial Services - Where's the exit?
Where's the exit?

If you’re considering selling your dental practice, whether it’s in the next 12 months or several years down the line, you need to ensure it is on the best possible terms.

Whether you want to move on, stay on or wind down towards retirement, you need to prepare a sound exit strategy that’s right for you and your business to ensure the best-selling price, while making sure the business continues to thrive post-sale.

The transaction process usually proves to be something of a challenge, and finding the right specialist broker to advise and support you can be a great asset. But what should you look out for and when should you look to professional help to ensure a successful sale? Here are six points to consider.

1. The tie-in period
Often, buyers may ask to tie you in, especially if you are the leading performer, the practice is predominately private, or you personally provide specialist services. This needs careful consideration, but also means more options could be available to you if you are able to commit to assisting with the transition of goodwill.

2. Deferred payments
Any offers received, and depending on the business, may include deferred payments that are released on meeting certain targets to ensure practice performance remains the same post-sale.
The possibility of deferred payments again depends on the type of practice and any targets tend to be related to practice turnover or to you as an individual performer.
In this situation, it is always best to take the advice of a specialist broker. These targets need to be fair and achievable in relation to the business, so there’s no likelihood of you losing considerable revenue if unrealistic targets are not met.

3. Partnership model acquisitions
This model works well for vendors looking to reduce responsibilities, but continuing clinically for the longer term by deferring some of the monies and converting this into shares. The projected return can certainly make this an attractive option to some vendors, but don’t be too hasty. The terms and conditions of this type of deal need to be properly scrutinised and discussed with both a broker and solicitor to ensure the terms are reasonable, and in the best interest of the seller.


If you are unsure whether to sell the freehold outright or to lease the building, it’s advisable to have an up-to-date commercial property evaluation


4. Post-sale payment
Any incoming buyer will consider the vendor remunerations as part of their earnings before interest, tax, depreciation and amortisation (EBITDA) model and this needs to be carefully checked by a broker against what is being offered. This will ensure that a fair remuneration rate is being put forward and the price is not inflated due to a poor post-sale associate contract.

5. Tenure
If you are unsure whether to sell the freehold outright or to lease the building, it’s advisable to have an up-to-date commercial property evaluation.
A specialist broker can help to provide this, along with an estimate of the return you are likely to expect from leasing the property in the current market. This allows you to make an informed choice whether to sell up, lease the building, or offer both options.

6. Upgrading equipment
Most buyers usually purchase on a debt-free cash basis, so any loans are paid off on completion. Some of the tangible assets purchased – fixtures and fittings – hold little value in comparison to the value of goodwill, so it’s advisable not spend extra money upgrading the surgeries or taking on any major refurbishment prior to marketing. You’re unlikely to see any return on investment, or even break even.

Exit strategy
These are just some of the important points to consider when planning and executing an exit strategy, and even if you have no current plans to sell, it’s never too soon to start putting a plan in place.

The team at Mediestates has comprehensive and extensive specialist knowledge of the dental market and how it relates to your individual circumstances, which allows us to help you plan and execute an exit strategy at the earliest opportunity.

An exit strategy does not mean the end of a career, it’s just as applicable to anyone wanting to sell a practice, becoming part of a corporate, planning for retirement or choosing a new career path entirely.

Whatever decision you make, Mediestates can provide you with the practical knowledge and expertise to plan the exit strategy that’s right for you.

Posted by: Shannon Loonam 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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