Very few of us would attempt to tackle a complex problem, in an area outside of our normal expertise; a successful solution at the first time of asking would be highly unlikely and therefore require a large degree of good fortune. Most of us would prefer not to leave things to chance, particularly if that complex problem was a key career, business and financial decision.
Selling a dental practice will be one of, if not the, biggest financial and professional transaction many dentists will undertake in their careers. It makes sense therefore to approach the process in partnership with a team of experts, whose business it is to get the best valuation and sale for your practice, and who have a proven track record of delivery and expertise.
Engaging the help of an expert will mean the prospective seller will be urged to show resilience and perseverance. The first offer may not be the best, and it’s important to get the best deal for you, which may not necessarily be the first one that’s offered. There may be hurdles to overcome, but with the support and guidance of an expert team like Frank Taylor & Associates (FTA), the process can be navigated smoothly and successfully.
Another key lesson for any seller is to ensure all their paperwork and documentation is up to date. The sale can be delayed whilst key documents are found and shared. Such administrative hold-ups are avoidable if everything is ready in advance.
Oliver Acton of FTA recalls the recent sale of a Cambridgeshire-based practice. “The practice was on the market in 2021 but with minimum progress, due to uncertainty at the time about interest rates, inflation, utility prices etc, the client decided to withdraw the practice from the market. We kept in touch and the practice was put back on the market towards the end of 2023. The sale was relaunched to the open market and within three weeks an offer had been accepted after a high level of interest. FTA were naturally delighted to partner with the seller throughout the process.”
“It’s a great example of the power of a couple of the tenets that we believe are important in any challenge, namely determination and teamwork. Working with the practice team, we were able to turn what had been a demoralising experience a couple of years ago into a successful and rewarding one for the seller second time round.”
For those considering the sale of their practice, this story serves as a great reason to start a conversation with the FTA team – get in touch on 0330 088 1156.
Practice - Greater London
Practice location: This well-established practice is situated on a busy main road in a bustling London suburb and has been established for over 30 years. Excellent road, rail, tube links and surprisingly easy parking nearby too.
Practice type: This is a two-surgery mixed practice and is being sold to facilitate the retirement of the principal. It is being sold as leasehold with a new 20-year lease in place that is inside the Landlord & Tenants Act 1954. The practice occupies a ground floor of a shop fronted building, set amongst a parade of shops.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £250,000 per annum and is generated by a balanced combination of NHS and Private. The NHS-GDS contract has a UDA rate more than £30 per UDA. The income is generated by the principal working one day a week, an associate working 3 days a week and a hygienist working two days a week. They are supported by a part-time practice manager, two full-time dental nurses/receptionists.
Price achieved: A price of £660,000 was achieved which was in line with the asking price.
Agent's comments: This practice currently operates four days a week and current chair occupancy is c.65% so there is much opportunity for growth. The incoming principal has been working in the area for several years and is delighted for this opportunity to build the private element of this practice.
Number of people looking in the area: 2,798
Practice - Essex
Practice location: This practice is situated in a commuter town in the heart of this county and has been established for over 35 years. It is being sold to release the principal from the challenges of practice ownership.
Practice type: This is a very well established two surgery mixed practice that occupies part of a commercial property which benefits from great exposure to local footfall. There is ample free parking at the practice and great access if public transport must be used.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £275,000 per annum with almost a 50/50 split between private and NHS income. It is currently associate run. The gross has been generated by two associates working a combined five days a week and a hygienist working 1 day a week. The team are supported by two part-time receptionists and three part-time nurses.
Price achieved: A price of £600,000 was achieved which was in line with the asking price.
Agent's comments: The incoming principal plans to work at the practice full-time and with that one action has increased the profitability! The plan is to utilise the surgeries in a more efficient way to increase the private opportunities and to bring in specialists to curb the amount of treatments which historically had been referred elsewhere. To date there has been little in the way of marketing or social media.
Number of people looking in the area: 1,744
Practice - Northamptonshire
Practice location: The practice is based in a residential area within Northampton, and the area is known for its diverse community. There is ample on street parking and bus routes close to the practice. It has been established for over 40 years and is being sold as a freehold.
Practice type: This is a two surgery, predominantly private practice and was previously a residential property with a freehold value of £150,000.
Practice financials: The gross fee income is in the region of £180,000 generated by 75% private income and 25% NHS-GDS contract with just over £33.00 per UDA. The income is generated by the principal working four days a week, supported by a nurse who works four days a week and a part-time receptionist.
Price achieved: A price of £425,000 was achieved which included the freehold.
Agent's comments: This practice is absolutely ready for a makeover, and the new owners have every intention of doing just that! The practice currently operates at less than 20% capacity which has been driven by the current owner not wanting to work longer hours or employ an associate. The demand in the area for private and NHS dentistry is significant and with a husband and wife making a purchase they have plans to ensure growth will happen.
Number of people looking in the area: 808
Practice - Hertfordshire
Practice location: This practice is situated in a popular and bustling town and can be found in a busy high street which is a great location.
Practice type: This is a three surgery, fully private practice being sold as a freehold. It has been established for over 20 years and is being sold to enable the principal to pursue other business interests.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £500,000. The income has been generated by the principal working five days a week, a part-time associate working two days a week and a hygienist working 1 day a week. The team are supported by a full-time practice manager, two part-time receptionists and two part-time nurses.
Price achieved: A price of £900,000 was achieved and was in line with the asking price.
Agent's comments: This practice has been firing on all cylinders since 2022 and whilst the principal has enjoyed the increase in activity, he really wants to pursue other interests and is very happy to be leaving the practice in such good shape. The incoming principal has the benefit of a three-month hand over period and is excited to see where he can take this practice to.
Number of people looking in the area: 2,057
