Sound Legal Aid
Whether you are thinking of buying and/or selling a practice in the near future, within, say, two to five years, or as part of a longer-term strategic objective, when the time arises one certainty is that you will need the services of a solicitor to assist in the transaction. The sale or purchase will likely be one of biggest financial decisions you make in your career, so it’s natural you need expert professional support throughout.
Oliver Acton of Frank Taylor & Associates discusses what to consider when appointing a solicitor. “The initial temptation may be to appoint a solicitor you have worked with before, perhaps for conveyancing on your private property, or someone who has supported you in a family or employment matter. However, there are nuances in the sale or purchase of a dental practice that require a specialist in that area. Just like most professions, including dentistry, there are specialists in certain areas and the legal profession is no different.”
“In many ways the solicitor will be part of your team during the transaction”, continues Oliver, “and the criteria you use when making hiring decisions for staff will be very similar to the thought process you will go through when appointing your solicitor.”
“Firstly experience…does your solicitor have a track record of working with successful transactions and getting them over the line?” asks Oliver. “There are a number of ways in which a solicitor can facilitate the transaction, for example in ensuring all documentation is up to date and easily accessible and exchanged in line with the timescales required. Your solicitor can also help protect you with guarantees and warranties to prevent you getting any unwelcome surprise during or after the sale.”
“Secondly, attitude”, continues Oliver, “you’ll always want someone with a ‘can-do’ mindset. Transactions can be lengthy processes, so you need to maintain focus on the long-term goal of completing the transaction but having the diligence and resilience to overcome any hurdles along the way. There may well be points that need to be discussed and resolved during the deal, and it’s important that your solicitor keeps the big picture in mind and understands which ones may be deal-breakers and which are ones where more leeway can be allowed.”
“Lastly, value”, counsels Oliver. “It goes without saying that you don’t want to overpay, but equally if you don’t recognise the value of a solicitor’s specialist experience and approach, taking a cheaper option may turn out to be a false economy. We have seen deals collapse over seemingly small things, and then the client is back at square one and left with a sizeable legal bill. It’s really about finding the middle ground of experience, and price.” Oliver concludes, “the fear of the unknown in an apparent legal minefield can seem daunting but I want to reassure you this does not need to be the case. A good specialist lawyer guiding you through the process will be a real asset and I can assure you that they do exist!”
For more help on identifying the right professional support in your transaction, contact our team on 0330 088 1156.
Practice - Oxfordshire
Practice location: This practice is situated in one of the most popular areas of Oxfordshire and captures both commuters and local residents. The town has a thriving community and a bustling local economy with a range of amenities from independent cafes to large high street brands. Great transport connections and continuing development means an ever-increasing population.
Practice type: This is a four surgery mixed practice with over 70% of the income derived from a NHS-GDS contract. The practice is being sold as freehold and is being sold to release the owner from the burden of management responsibilities. It is in a highly visible location and has been kitted out to a very high standard.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £975,000 per annum and is generated by the principal working three days a week, a full-time associate and four part-time associates working a combined 11 days a week, two hygienists working a combined five days a week. The team are supported by a full-time practice manager, seven full and part time dental nurses and two part-time receptionists.
Price achieved: A price of £1,455,000 was achieved which was in line with the asking price and included the freehold of £250,000.
Agent's comments: This practice proved to be very popular and has maintained a robust trading history for nearly 50 years. The existing principal is happy to stay on and is truly looking forward to enjoying clinical work without the burden of running the practice.
Number of people looking in the area: 1,030
Practice - Hampshire
Practice location: This practice has been established for almost 100 years and is situated in a pretty town on the Hampshire borders. There are the usual range of amenities and excellent transport connections. The area has seen large housing developments established recently all of which adds to the vibrancy of the area.
Practice type: This is a three surgery, mixed practice with a NHS contract with a UDA rate significantly higher than the average. It is being sold as leasehold with a new 15 year lease in place, and as the existing principal owns the freehold he has already agreed to sell the freehold within the next five years to the buyers.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £700,000 per annum with a 40/60 split between private and NHS. The income has been generated by the principal working five days a week and two part-time associates working a combined five days a week and two hygienists working a combined 4 days a week. The team are supported by four full-time dental nurses/receptionists.
Price achieved: A price of £1,275,000 was achieved which was in excess of the asking price.
Agent's comments: This practice generated much interest, and the seller was able to select the buyer he felt was most motivated by the opportunity to develop the practice in the way he would have wanted to. We never tire of hearing our existing principals talk about their patients and team members in such a protective way.
Number of people looking in the area: 1,154
Practice - Avon & Somerset
Practice location: The practice is situated in a vibrant and popular suburb. This leafy district provides access to all the local amenities with a good collection of prestigious schools within a couple of miles of the city centre and excellent road and rail links.
Practice type: This is a two-surgery, mixed practice that is being sold to facilitate the retirement of the current principal. It has been established for over 80 years and is situated in the ground floor of a large Victorian house.
Practice financials: The gross fee income is in the region of £400,000 and has been generated by the principal working four days a week, three part-time associates working a combined three days a week, and two hygienists working a combined two days a week. The team are supported by a part-time practice manager, and four/receptionists nurses who work full-time.
Price achieved: A price of 550,000 was achieved which was in line with the asking price.
Agent's comments: With almost a 50/50 split between private and NHS and chair occupancy running at 70%, the incoming principal has plans to convert a spare room into another surgery and feels confident that the turnover could be significantly increased.
Number of people looking in the area: 673
Practice - Greater London
Practice location: This practice is situated in one of the most popular London suburb and forms one of the major commercial districts. There was a significant regeneration programme completed recently with a creation of 7,000 homes and jobs in the area.
Practice type: This is a five surgery, mixed practice being sold as leasehold. It has been established for over 50 years and is being sold to facilitate the retirement of the current principal. It occupies three floors of a commercial property with excellent footfall from a busy high street.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £1,250,000 and is generated by six associates working a combination of hours. The team are supported by three receptionists and five full-time dental nurses.
Price achieved: A price of £2,665,000 was achieved which was in line with the asking price.
Agent's comments: This practice has been associate run for many years and the incoming principal will be taking an active role and increasing the profitability. He is bringing a wealth of experience to the practice and intends to increase the opening hours and extend the treatments that are currently on offer.
Number of people looking in the area: 2,873
