Why Protecting Your Practice Valuation Matters
When you receive a valuation for your dental practice, you may wonder why it’s treated as confidential and protected by copyright. After all, the valuation is based on your practice data — so why do brokers place such strict limits on how it’s shared? In the UK dental market, this is a vital consideration for both the protection of your practice and its future.
While a valuation is often seen as a mere stepping stone in the sale or transition process, it holds far more significance. It provides a comprehensive snapshot of your practice’s financial health, intellectual property, and competitive position. If shared too freely, this valuable information can expose your practice to unnecessary risks. Let’s take a closer look at why protecting this document matters.
The Significance of Protecting Your Practice Valuation
The valuation of your dental practice isn’t just a number; it’s an in-depth analysis crafted by an experienced broker. The methodology, structure, and presentation of the valuation reflect the broker’s expertise and market understanding. This document, therefore, remains their intellectual property.
However, the data it contains – such as your patient base, financials, and operational details – is exclusively yours. This is highly confidential information that only you, as the practice owner, fully understand. The valuation represents not just a snapshot of where your practice stands today, but also its potential future. As such, any breach of confidentiality can expose your business to unwarranted risks.
Why Limiting Access to Your Valuation is in Your Best Interest
It’s natural to share your valuation with trusted advisors, such as accountants, solicitors, or potential partners, to get their opinions. However, the problem arises when the document is forwarded to other parties without your knowledge or consent.
For example, your accountant might email the valuation to a colleague for their input, or your solicitor might share it with a third-party adviser. These seemingly innocent actions can quickly lead to a situation where sensitive information is passed around too widely — even reaching people within your team who were unaware of your plans to sell or change the practice’s structure.
This is why brokers put strict sharing protocols in place. These measures are not designed to create unnecessary obstacles but to safeguard your practice from potential risks, such as leaks of confidential information or unwarranted speculation among staff members.
Protecting Your Most Valuable Asset: Confidentiality
Your valuation is essentially two-pronged: while the broker retains copyright over the document itself, you control the data it contains. If the details in the valuation are shared inappropriately, it can inadvertently reveal key insights about your practice’s strengths and weaknesses. This could affect your ability to negotiate favourable terms or make future strategic decisions.
Before sending your valuation to anyone, always pause to consider the consequences. Is it absolutely necessary for this information to be shared? Who will have access to it, and how could this impact your practice in the long term?
The Role of a Broker in Securing Your Practice’s Future
We understand that valuations are a vital tool for managing and growing your dental practice, whether you plan to sell or simply want a clear understanding of your financial position. As brokers, our role is not only to help you determine the value of your practice but also to ensure that your information remains secure.
By following strict protocols around sharing and protecting your valuation, we are safeguarding not just our intellectual property, but your practice’s sensitive data. This partnership is about more than just a valuation – it’s about helping you secure a stable, profitable future for your dental practice.
If you have any questions or concerns regarding the protection of your valuation or practice data, feel free to contact us for expert advice. Your practice’s confidentiality and security are our priority. Call us today at 0330 088 1156 to learn more.
Practice - Hertfordshire
Practice location: This long-established practice is located in the heart of a charming market town. The town, with a population exceeding 42,000, offers a mix of historic appeal and modern amenities. Excellent transport links provide convenient access to London and nearby cities.
Practice type: This is a three-surgery, mixed-income practice with a strong NHS component. The premises span the ground and first floors of a centrally located property, featuring a range of facilities including a panoral x-ray room, a central sterilisation room, and a well-appointed reception and waiting area. The leasehold property includes a newly drafted 15 year lease with an annual rent of £20,000.
Practice financials: The gross fee income for the past 12 months was approximately £685,000, with a balanced income split of 52% private and 48% NHS services. Reconstituted profits are in the region of £205,000, representing a 30% margin. The practice team includes two principals, a therapist, an associate dentist, three dental nurses, and a receptionist. The chair-time occupancy rate is 73%, leaving significant room for growth.
Price achieved: A price of £800,000 was achieved.
Agent's comments: This practice presented a compelling opportunity due to its consistent performance and strong reputation established over 35 years. With chair-time occupancy at 73%, the potential for growth is significant. The incoming owner can leverage these factors, particularly in expanding the underutilized private offering.
Number of people looking in the area: 2,062
Practice - Bedfordshire
Practice location: Situated in a thriving town in Bedfordshire with a population exceeding 35,000, this practice benefits from a predominantly residential setting complemented by nearby amenities, including schools rated as 'good' or 'outstanding' by Ofsted. The town’s excellent transport connections include a train station less than a mile away, offering direct services to London, and proximity to the M1 motorway, making it an attractive option for commuters.
Practice type: This is a four-surgery, mixed-income practice. The property is a purpose-built, detached building, including a reception/waiting area, decontamination room, kitchen, and stock room. Parking is available for two cars on-site, with additional free street parking nearby. The freehold property offers further security for the incoming owner, with potential expansion opportunities available.
Practice financials: The gross income for the 12 months to March 2022 was approximately £1,100,000, with 70% NHS and 30% private work. Reconstituted profits were approximately £238,000, representing a margin of 23%. The NHS contract is worth over £700,000. The income is generated by the principal working three days a week, supported by five part time associates, two part time hygienists, and a full support team comprising a practice manager, decontamination nurses, dental nurses, and receptionists.
Price achieved: A price of £1,500,000 was achieved.
Agent's comments: This well-established practice has been operating since the 1960s and limited competition. With a stable NHS base and potential to grow private income, the practice represents a lucrative investment. The current principal is happy to stay on for three days per week, ensuring continuity and support for the incoming owner.
Number of people looking in the area: 1,538
Practice - Northamptonshire
Practice location: This practice is located in a historic district of Northampton, surrounded by a mix of residential, commercial, and cultural establishments. The high street location ensures excellent footfall and visibility, with nearby shops, cafes, and businesses creating a vibrant environment. The area is well-connected, with regular bus services, a train station offering links across the country, and major roads providing access to the M1 and city centre.
Practice type: A two-surgery, mixed-income practice offering general family dentistry. Established in the 1950s, the practice is housed in a converted terraced property spanning two floors. Facilities include an OPG room, decontamination room, and spacious patient lounge. Free street parking is available nearby, along with a pay-and-display car park at a local supermarket.
Practice financials: The gross income for the most recent 12 months was approximately £500,000, with an NHS contract worth £313,000 for 8,300 UDAs at a competitive rate in excess of £37. Private work makes up 39% of the income. Reconstituted net profit stands at £234,000, representing a strong margin of 46%. The income is generated by the principal working 4.5 days per week, supported by a team consisting of a practice manager, two dental nurses, and one dual-role dental nurse/receptionist.
Price achieved: A price of £950,000 (inclusive of freehold) was achieved.
Agent's comments: This highly profitable practice, with its prime location and excellent UDA rate, offers substantial growth potential. The current owner refers out all complex work, providing an opportunity for the incoming buyer to increase revenue by retaining these cases in-house. Additionally, the absence of evening or weekend appointments leaves room to expand patient services and operating hours.
Number of people looking in the area: 801
Practice - Wiltshire
Practice location: This well-established practice is situated in a thriving suburb of a city with a population of over 296,000. The area has experienced significant regeneration since the 1990s and boasts excellent transport links. A mainline rail station is just over a ten-minute walk away.
Practice type: This fully private, four-surgery practice occupies a spacious two-storey detached building. Facilities include two surgeries on each floor, reception and waiting rooms on both levels, a panoral x-ray room, and staff facilities. The property features a garden and nearby parking, with unrestricted options in adjacent streets.
Practice financials: The gross income for the year ending May 2023 was approximately £368,000, generated entirely through fee-per-item private patients. Reconstituted net profit was approximately £100,000, representing a margin of 27%. Income is derived exclusively from fee-per-item patients. The team includes the principal working one day per week, three associates working a combined total of 12 days weekly, and a support team of three full-time and one part-time dental nurses, as well as a receptionist.
Price achieved: A price of £750,000 (inclusive of freehold) was achieved.
Agent's comments: This practice presents a unique opportunity with scope for growth by introducing additional services such as hygiene and specialist treatments. The practice has significant unused chair-time, with capacity to increase by 38%. The loyal team and excellent location make this an attractive option for both individual buyers and partnerships.
Number of people looking in the area: 647
