New Years’ Solution
In the early weeks of the year, it’s likely that whilst a few new year’s resolutions will have been achieved already, others lapsed, and most will likely still be on the ‘to do’ list of objectives for the year. For anyone whose plans for 2024 include buying a dental practice, it’s likely this is still on the latter category.
Buying, whether first time or subsequently, can seem a daunting prospect. However, with the right guidance, advice and preparation, the process can be navigated painlessly and leave the informed buyer with a prized asset and business.
Frank Taylor & Associates are launching a new course to aid buyers through all aspects of the purchase. The course, aptly entitled ‘Buying a Dental Practice Masterclass’ covers all stages of the process, and is delivered by experts in each field, meaning participants can benefit from their unrivalled knowledge and experience and be confident the key decisions are as well informed as possible, and that they have access to all the right tools and information.
The programme covers a wide range of topics, all relevant to purchasing your own practice. Financial aspects include how to arrange finance, calculating your budget and how to read financial statements like a profit and loss account (P&L) and key concepts including earnings before interest, tax, dividends and amortisation (EBITDA).
The modules on the purchase itself provide guidance and insight on assessing a sales prospectus and what to look for when viewing potential practices. The final section focuses on how to manage the practice once you have completed the sale, and includes guidance on managing your practice and recruiting, motivating and developing staff.
The course, consisting of several modules is delivered remotely, granting delegates flexibility over their learning without the need for classroom attendance. Each module is delivered by webinar, starting at 7pm on a weekday evening, and therefore intending to allow attendees to complete their working day before joining the on-line classes.
If you are thinking of buying a practice in 2024 and want to take advice from a team of experts and learn from their experience, click here.
Practice - Worcestershire
Practice location: This well-established practice is in the centre of the country and has been established for over 50 years. It is a prominent corner site property situated amidst residential and shopping areas.
Practice type: This is a three-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.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £650,000 per annum and the NHS-GDS contract has a UDA rate in excess of £34 per UDA. The income is generated by the principal working three days a week, with two associates working a combined 7 days a week and two hygienists working a combined three days a week. They are supported by a receptionist and five full time dental nurse/receptionists.
Price achieved: A price of £1,300,000 was achieved which was slightly in excess of the asking price.
Agent's comments: The existing principal had worked and owned this practice for 30 years and whilst he wanted to retire, the concept remained challenging. This all changed when he met one of the potential purchasers who reminded him of his younger self, and he is now delighted to let go of the responsibility confident the team and the patients will be well looked after.
Number of people looking in the area: 384
Practice - Midlands
Practice location: This practice is situated within a short drive of a bustling town in the heart of the country and has been established for just over 15 years having been started as a squat practice by the existing owner. It has operated as an associate led practice.
Practice type: This is a very well established four surgery, fully private practice which is being sold to reduce the responsibilities of the practice owner. The practice occupies the ground floor of a purpose-built commercial property, and it is being sold as leasehold with 10 years remaining on a 15-year lease which is held within the Landlord & Tenants Act 1954.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £600,000 per annum. The gross has been generated by three associates working a combined 11 days per week, and a hygienist working three days a week. The team are supported by a full-time practice manager, a full-time receptionist and three full-time nurses.
Price achieved: A price of £825,000 was achieved which was in line with the asking price.
Agent's comments: This fully private practice has been purchased by an established practice owner to add to his already flourishing stable of private practices. It will continue to operate it as an associate led practice. There was significant interest in the practice which is something we continue to see in the private field of dentistry.
Number of people looking in the area: 1,583
Practice - Avon
Practice location: The practice is based in one of the largest towns in the region and has excellent road and rail links. It has been established for over 40 years and is being sold to release the current owner to focus on other business interests.
Practice type: This is a five-surgery, associate led, mainly NHS practice and is being sold as leasehold. The landlord is prepared to create a new 20 year lease inside the landlord and Tenants act 1954.
Practice financials: The gross fee income is in the region of £750,000 generated by a NHS-GDS contract with just over £28.00 per UDA. The income is generated by three full-time associates and a part-time associate working 1 day a week. The team are supported by a practice manager, two part-time receptionists, and four full-time and two part-time dental nurses.
Price achieved: A price of £875,000 was achieved which was in excess of the asking price.
Agent's comments: In contrast to the previous practice, this is an almost 100% NHS practice which is positive to see. The new owner has very much an eye on the future opportunity of NHS Dentistry and the belief that there will be significant improvements to the quality of working in this sector in the future.
Number of people looking in the area: 371
Practice - Leicestershire
Practice location: This practice is situated in an affluent village in the county, having been established for over 50 years. It has a well-respected reputation that has been hard earned.
Practice type: This is a three surgery, mainly private practice being sold as a share and asset sale. The NHS contract is held in the name of the existing principal and the income and expenses of running the contract are kept separate to the private element which is run through the limited company. It is a leasehold sale with a new 15-year lease in place which is inside the Landlords & Tenants Act 1954.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £625,000 of which 80% is private and 20% is NHS with a UDA rate in excess of £28.00 per UDA. The income has been generated by the principal working three days a week, an associate working three days a week, and a hygienist working 1.5 days a week. The team are supported by a full-time receptionist and three full-time nurses.
Price achieved: A price of £825,000 was achieved and was slightly in excess of the asking price.
Agent's comments: This practice proved to be very popular as whilst it is in a rural location it is close to major towns and roads in the county. The buyer has worked predominantly in the private sector and was comfortable with the element of the NHS in the practice.
Number of people looking in the area: 842
