Dental Practice Sales

Buy a Practice

Buy a Practice

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Setup a Practice

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Sell a Practice

Buy a Practice

Buying a dental practice could be the biggest investment you make in your working life, therefore, it is essential you get this right, as second chances rarely come along.

Buyer Registration

Simple. Register below and if any suitable practices match your requirements we will be in touch.

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buying a dental practice

Buying a Dental Practice – The 2020 Guide

The most exciting time of your life Dental Practice ownership is the most thrilling aspect of your professional life. Providing important oral health care and restoration treatments to the public rewards you and helps communities. Whether you are looking to buy your first – or next – dental practice, Samera Business Advisors are here to […]

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Buying a Practice FAQs 3

Buying a Practice FAQs

Click below to see our frequently asked questions about buying a practice.

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We have a personable and sustainable relationship with our registered buyers, and we always strive to match the right practice with the right buyer. We listen to each buyer and discuss their selection criteria, sourcing the right practice.

Due diligence is a very important exercise carried out during any dental practice sales and acquisitions process.

It is divided into legal and financial due diligence. It is an exercise to confirm that all information provided at the time of discussing and agreeing to offers is accurate and precise. Information such as accounts, management accounts, patients number, staff contracts, NHS contracts and any legal issues such as change of control clauses, lease and property contracts, are just some of the documents to be checked and diligently controlled. An expert legal and financial team will know what to look for in a professional and time-effective way.

After you visit the practice and check the property and surrounding areas, have a good look at the last 3 years’ financial statements. Find out if the turnover is steadily increasing or decreasing and check if the private revenue is made up of fee-per-item or capitation scheme. You also want to check if the number of full-time equivalent dentists is less than the number of surgeries, so that there is an opportunity to increase the workload and the revenue.

If the practice is incorporated, make sure that there is not a ‘change of control clause’ in the NHS contract and, if you are buying halfway through the year, check the performance of the UDAs delivery to avoid any unwanted clawback in the next financial year.

Never consider the services of a solicitor or a firm with no experience with dental practice sales.

It’s that simple. But occasionally we experience some dental principals going down the route of a solicitor who may be brilliant dealing with purchasing houses, but could slow down the process of selling or buying a practice, potentially increasing your legal fees or asking unnecessary or more than necessary due diligence documentation to complete, ending up wasting precious time.

Every practice is unique and every single dental practice has a price range of value, dictated by many factors and many variables.

It is important to look at the last 3 years’ set of accounts as well as the latest and up-to-date management account to see any upward or downward income trend. The surgery percentage of utilisation and opportunity to expand are also factors that can potentially increase value and marketability.

The average timescale for a dental practice sales deal to complete is approximately 5.5 months.

There are many factors, such as the type of practice and the legal and financial support team selected, that can influence the timeframe and speed up or slow down the process of buying a practice.

If you’re buying a dental practice with an NHS contract, ask for the electronic copy of the GDS or PDS contract, checking all variations and any potential change of control clauses.

Regarding the sale of the dental practice with the NHS contracts, there will be 28 days’ notice between exchange and completion to add to the NHS element of the deal.

We like to simplify the process of buying and selling a dental practice to 8 major steps.

Initial enquiry – the vendor sends the completed data collection form to Samera and initial discussion with our team takes place.
Valuation and practice visit – this is when we confirm the key variables and arrange a visit at the practice and our report is discussed with the vendor(s). Phase one of Samera marketing process is explained and begins straight after the meeting.
Viewings – Phase 2 of Samera marketing process. This consists of arranging appointments with potential buyers that have already been screened and viewing the property.
Offer stage – we negotiate the best financial package and best terms, then Heads of Terms are negotiated and agreed.
Due diligence – key information and documents are reviewed by legal teams.
Ongoing Support – we are there at every step of the way, supporting sellers during the financial and legal due diligence for a smooth completion.
Completion – sales and transfer of funds to the vendor’s bank account.

No, not necessary. A buyer will always consider private limited companies and sole traders. Each one is treated differently from a legal perspective and the way in which NHS England is informed is different depending on whether the vendor decides to sell the dental practice via assets sale or shares sales.

We have never encountered an issue that we can’t resolve.

No practice is the same, but we have never encountered an issue that we can’t resolve; sometimes it just takes a little longer. Any problems usually come to light at the due diligence stage when all documents are thoroughly inspected.

The most frequent time delaying issues are regarding the property or the lease negotiations.

We are experts in the buying and selling of dental practices and we will help all dentists to structure a deal to suit them.

Each dentist has specific expectations, tax situations and desires.

Payments usually take the form of upfront transfer on completion for NHS-driven profits, deferred payments for performance-based criteria, earn-out for private revenue, and negotiated UDA rates for vendors working at the practice after completion, who may prefer to have a higher on-going salary rather than an upfront payment depending on their individual tax position.

Investing in alternative businesses and retirement. The most common reasons for selling a dental practice are investing in alternative businesses, to add to a retirement fund or to gain freedom from all of the administration and regulations of running a practice, allowing the vendor to once again focus on the things they enjoy.

You should always discuss your financial position with an expert broker and usually have at least a 10% deposit when thinking of buying a practice.

Most lenders will offer a maximum of £500,000 unsecured loan per dentist, depending on the practice and personal situation so if you are thinking of buying a practice worth £1,500,000 with a partner, you must have a minimum of £500,000 deposit.

If you place an offer and don’t have available funds or a finance agreement already in place, you risk being unable to buy a practice and, of course, losing credibility in the dental world, where news travels at the speed of light.

More often than not we come across sellers wishing to take the practice to the next level with a new buyer, whilst relinquishing the responsibility of running the practice, as they have done this for many years. Having a seller deciding to stay at the practice to help with the transaction time is most valuable for any buyer, especially a young dentist buying a practice for a long-term project.

So, have a good conversation with the seller and explain your idea, as money is not the only driver for a seller.

Once your offer is accepted and you are in the process of the due diligence, check the quality of the equipment, cabinetry, compressors, floor or anything that could perhaps cost you money from day one. You also need to ask the details and date of the last CQC inspection and DDA compliance to make sure that any potential requests outlined in the report have been satisfactorily covered. Your solicitor will help you with checking all equipment certificates, as well as indemnity insurance for the staff.

The seller may wish to stay at the practice for a number of years. Make sure you discuss and agree on an associate contract with the seller and agree on the number of UDAs to be performed, pay per UDA and working hours.

Of course, if the seller is not staying at the practice, make sure that there are some restrictive covenants preventing the seller to work near the practice that you have just bought.

A minimum of 2.5 miles in a rural area and 0.5 miles in a city should apply.

For a vendor, the options are either selling the property or have a lease in place with the buyer.

The property will be valued as a commercial property and not on a residential basis so this is a point to consider when thinking about buying it or not.

If there is a lease on the property and the lease is less than 15 years to the expiry date, it is advisable to talk to the landlord about a potential extension and engage the landlord at an early stage.

Any buyer would want at least 15 years lease or more if possible and the likelihood is that the landlord would ask for his legal costs to be covered.

During the due diligence process, you will be asked to provide and show your certificates such as the GDC registration.

Have all those ready and will save you time and during the selling process.

Yes most certainly so, it takes some time and is boring but it will create clarity with regards to the items purchased at the practice and the items that are taking away. Also it will avoid any potential arguments and dispute further down the dental practice sales process.

Care Quality Commission is another potential reason for a delay in buying a dental practice. Sometimes even 3 months delays if either the buyer or the seller don’t have their DBS check ready and available to submit, or the practice has not been inspected lately.

The process of selling the dental practice will involve deregistration of the seller and registration of the buyer to work at the practice. This process will likely trigger a new CQC inspection, unless one was carried out recently. So, have everything ready and DBS not older than 6 months.

If all, or part, of your equipment is leased, sellers could either transfer the arrangements to the buyer or pay it off, which is usually most buyers’ preferred choice.

Most solicitors acting on behalf of their clients as buyers will advise their client to include in the Standard Purchase Agreement ( SPA ) document, a warrant from you as a seller that all information provided including any financial and contractual aspect of the practice is true and accurate.

On the other hand, the seller’s solicitors should negotiate and deal with the warranties in a way that protects the vendor and minimise their risks against potential claims in the future.

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Setup a Practice

Whilst practice values remain high, and increasing numbers of Dental Corporates continue to acquire quality practices, a popular option for potential first-time owners is setting up a Dental Practice from scratch. Instead of paying for goodwill that may walk out the door, you can set up and build a successful practice from scratch. However, it requires an important set of skills that not everyone has.

The Dental Practice Start-Up Programme

Our Dental Practice Start-Up Programme is an exclusive service that helps you set up a dental practice over a 12 month period, where our experts assist you every step of the way. Only a few spaces are available each year.

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setting up a dental practice

Setting up a Dental Practice

Setting up a Dental Practice is NOT for everyone, but for those that have the gusto to do this, our Start-Up Dental Practice Programme is ideal for them. Whilst practice values remain high, and increasing numbers of Dental Corporates continue to acquire quality practices, a popular option for potential first-time owners is setting up a […]

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successful dental practice

13 Steps to a Successful Dental Practice

Back in 2004, when many dentists were bumbling along with the old NHS contract, we decided to open up a squat dental practice. No experience of setting up a dental practice, just plain business ideas and clinical knowledge to back us up. Most dentists we spoke to said we were mad not trying for an […]

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building a business plan

Building a Business Plan

If you are planning to start your own practice you must have a business plan. Having a vision is great, but not having a plan or a route map of how you are going reach your vision is professional suicide. Most businesses fail mainly because they rarely think about the pitfalls that may arise whilst […]

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Sell a Practice

Our team of Dental Practice Sales Experts are perfectly positioned to help you get the best price when you sell a practice. Get in touch with us today to make sure you get the right price for your practice!

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Enter some basic information in our Dental Practice Valuation Calculator and we will then provide you with an estimate of how much your Dental practice is worth.

Arun Mehra

Arun Mehra FCA

Arun is a leading Dental M&A Advisor.
 

Contact Arun Directly


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Refinancing dental practice valuations

Free Dental Practice Valuations

At Samera, we offer free dental practice valuations if you are thinking about selling now, or in the future. For some clients, our help begins many years before they actually plan to sell their practice. This involves helping them plan a future they desire, building a practice of value and then finding the most suitable […]

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how to sell a dental practice

How to Sell a Dental Practice in 9 Steps

All while maximising its value, and minimising your tax! If you are wondering what the proper steps are on how to sell a dental practice, keep these 9 points in mind. If you’re ready, contact us today and our expert dental practice sales agents will help guide you through the process. Step One: Work out your timeline […]

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Selling a Practice FAQs 9

Selling a Practice FAQs

Click below to see our frequently asked questions about buying a practice.

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If you want to know how to value a dental practice, you firstly need to know that every single practice is unique, and every single dental practice has a range, where a lower range and a higher range. Of course, this will be determined by the financial accounts, so we always ask for at least the last 3 years’ sets of accounts, and the most up-to-date management accounts.

We analyse the potential value of a practice by visiting the practice and using a comprehensive questionnaire we have tailor made for dental practice valuations. We then create a valuation report and discuss with you the exact market value of your dental practice. If you are selling a practice and want to know what it is worth, please do get in touch.

The length of time that it takes for selling a dental practice in the UK varies subject to several factors, such as the type of practice. However, the dental practice sales process averages to 5 and a half months from beginning to end, (from the initial inquiry to the completion of the deal).

In order to maximize the value of your dental practice, you need to know that every single dental practice has a price range. In order to maximize the price, the first and most important thing to do is to value the practice properly according to market value. Generating a loss of interest, creating a successful and strategic marketing campaign.

At Samera Dental Practice Sales, we have a huge database of active registered buyers. Most importantly, we have a personable and sustainable relationship with our buyers that keep coming back and buying practices from us. We had a very successful year last year. We sold all valued in excess of £100 million worth of practices, with most of the practices achieving above asking price. If you are selling a dental practice and want to know how to maximize its value, please do get in touch.

If you are selling a dental practice, there are a few documents and contracts that you should have prepared for any potential buyers to look at. For example, any buyers would want to have visibility of their last 2 years’ sets of accounts, as well as the latest 12 months of management account. Also, if you have a verbal agreement with any of your support staff, do make sure that these agreements are documented and written down in a contract, so that any potential buyer will continue to pay and remunerate your staff as you currently do.

Most importantly, if you are thinking of selling a dental practice, perhaps you should think that if you were a buyer, what would you want to know about your practice? This is always a good question to ask yourself, alongside the reason for selling your practice. If you want to know more about what documents and what contracts should be prepared ahead of selling a dental practice, please do get in touch.

A deferred payment on the completion of a dental practice sale is when part of the agreed price is paid over billable time, over a number of years. That is always subject to either target for personal target achieved in terms of income, or practice turnover. We see more and more deferred payments applied to some of the deals completed over the years.

This is usually done by some corporates, and often some individual buyers, where they think that there might be an element of risk associated with the full price. They might want to protect themselves by applying for the deferred payment. If you want to know if your practice qualifies for deferred payment, or it might be subject to a deferred payment negotiation, and how to negotiate a deferred payment, please do get in touch.

If you’re thinking about selling a dental practice, and even if you’re thinking about selling to your associate, you should always have a valuation carried out of your practice. Imagine if you’re selling a practice to your associate, and perhaps you decide to stay and work together for a number of years. Perhaps you sell below market value, and you realize a year or two year later you are above market value; clearly, it’s going to create some animosity with you and your associate.

However, even if you don’t decide to stay, it’s always advisable to achieve the best available price, and the best deal structure. If you want to know what your practice is worth and if you want any support in how to negotiate with your product associate, please do get in touch.

A broker will help you to achieve the best price and the best possible deal structure available on the market by engaging with as many buyers as possible to create a loss of interest and examine the practice you’re thinking of selling.

We at Samera Practice Sales had a fantastic year last year with sales and valuations of dental practices worth in excess of £100 million. We have a huge database of active registered buyers, corporate buyers or an individual buyer looking to purchase a practice. Most importantly, we have a personable and sustainable relationship with all of our buyers. We always match the right buyer with the right practice for the best price and for the best deal structure available in the market. We work on success. Your success is our success.

EBITDA is earnings before interest, taxation, depreciation, amortization. It’s a standard way of determining profit. It’s one of the variables that are used when we evaluate practices.

EBITDA is essentially the true operating profit of the practice, it’s the number that you see after deducting the running costs from the gross profit. It can vary and it can be adjusted as each business owner could have different costs and different way of running a business. It is commonly used in valuing a dental practice.

I think you should consider buying an ex-corporate practice. With corporates, they always have a good marketing strategy and they are usually very CQC compliant. They’re great with their policies and procedures. They really know how to run a day-to-day dental practice. The cons that you should consider are why are they selling their practice in the first place? Consider it just might not fit in their strategy or there might be other reasons, and that’s something we could help you with to see whether this purchase would be suitable for your needs.

If all or part of your equipment is leased you could either transfer the arrangements to the buyer, if they are in agreement or paying it off, which is usually most buyers preferred choice.

Most solicitors acting on behalf of their clients as buyers will advise their client to include in the Standard Purchase Agreement ( SPA ) document, a warrant from you as a seller that all information provided including any financial and contractual aspect of the practice is true and accurate.

On the other hand, the seller’s solicitors should negotiate and deal with the warranties in a way that protects the vendor and minimise their risks against potential claims in the future.

The Care Quality Commission is another potential reason for a delay in practice sale, even sometimes 3 months delays if either the buyer or the seller don’t have their DBS check ready and available to submit, or the practice has not been inspected lately.

The process of selling a practice will involve deregistration of the seller and registration of the buyer to work at the practice, and this process will likely trigger a new CQC inspection unless one was carried out recently. So have everything ready and DBS not older than 6 months when planning to sell a practice.

During the due diligence process, you will be asked to provide and show your certificates such as the GDC registration for you and your qualified staff, professional indemnity insurance, employer’s liability cover, autoclaves, compressors and X-Rays.

Have all those ready and it will save you time when selling a practice.

If there is a lease on the property and the lease is less than 15 years to the expiry date, it is advisable to talk to your landlord about a potential extension and engage the landlord at an early stage.

Any buyer would want at least 15 years lease or more if possible and the likelihood is that the landlord would ask for his legal costs to be covered.

The options are either selling the property, or have a lease in place with the buyer. If you are selling to a Corporate, you should know that the property aspect of the deal is not their main interest. However, they may acquire your property if you wish to sell it. The property will be valued as a commercial property and not on a residential basis, so this is a point to consider when thinking about selling or not.

We have never encountered an issue that we cannot resolve.

No practice is the same but we have never encountered an issue that we cannot resolve, sometimes it just takes a little longer. Any problems usually come to light at the due diligence stage when all documents are thoroughly inspected.

We like to simplify the process to 8 major steps.

Initial enquiry – The vendor sends the completed data collection form to Samera and initial discussion with our team takes place.
Valuation and practice visit – This is when we confirm the key variables and arrange a visit at the practice and our report is discussed with the vendor(s). Phase one of Samera marketing process is explained and begins straight after the meeting.
Viewings – Phase 2 of Samera marketing process consists of appointments making with potential buyers already been screened and viewings.
Offer stage – We negotiate the best financial package and best terms, then Heads of Terms are negotiated and agreed.
Due diligence – Key information and documents are reviewed by legal teams.
Ongoing Support – We are there at every step of the way, supporting sellers during the financial and legal due diligence for a smooth completion.
Completion – Sales and transfer of funds to the vendor’s bank account.

Selling a dental practice is a very emotional and challenging time in any dental owner’s life.

Informing your staff is a crucial step in the dental practice sales process and this must be done at the appropriate time.

If the timing is wrong, it could create unnecessary stress and uncertainty amongst your loyal and faithful staff, and what if the sales are not completed? The risk is ending up with creating disruption, loss of trust, loss of revenue and more costs.

Your solicitor will be able to advise you when the right time to inform your staff of the sale is.

If your contract is time-limited (PDS) instead of open-ended (GDS), it may be worth considering a conversion, as a GDS contract (if possible) may attract more buyers. There are risks when converting the contracts, so it is always advisable to seek legal and financial expert support.

Regarding the sale of the dental practice with the NHS contracts, there will be 28 days’ notice between exchange and completion to add to the NHS element of the deal.

Yes most certainly so, it takes some time and is boring but it will create clarity with regards to the items you are leaving at the practice and the items you are taking with you, also it will avoid any potential arguments and dispute further down the dental sales process.

Consider accurately life after selling your dental practice, and make plans ahead of marketing the practice.

Whether you are retiring and want to cash in, or want to continue working in the practice or wish to set up a new practice, consider your options prior marketing your practice, and talk to a professional advisor who has helped others make the best choice before.

Never consider the services of a solicitor or a firm with no experience with dental practice sales.

It’s that simple, but occasionally we have experienced some dental principals going down the route of a solicitor who may be brilliant dealing with selling houses but could slow down the process of selling a practice.

Using an expert dental solicitor will ensure you get the right advice at the right time within budget.

Due diligence is a very important exercise carried out during any dental sales and acquisitions process.

It is divided into legal and financial due diligence. It is an exercise to confirm that all information provided at the time of discussing and agreeing on offers is accurate and precise. Information such as accounts, management accounts, patient numbers, staff contracts, NHS contracts and any legal issues such as change of control clauses, lease and property contracts, just to name a few of the documents are usually checked at this stage. An expert legal and financial team will know what to look for in a professional and time-effective way.

Enquire Now