Don’t Just Hope for The Best…Take Steps to Ensure It
The purchase of a dental practice is, for many, one of, if not the, biggest decision of their careers. In other aspects of our lives, decisions of arguably lesser consequence are often well researched with expert advice often called upon; from test driving a car to trying on clothes in a shop’s fitting room and getting help from the assistant.
When purchasing a dental practice, a decision which requires the careful consideration of multiple variables, and which is likely to be significant both professionally and financially, it makes perfect sense that the prospective buyer will want to engage the services of experts in the field.
Membership with Frank Taylor & Associates will ensure you can be guided expertly and smoothly throughout the purchase process, and gain access to the most extensive selection of practices available for sale in England and Wales. In addition, the team will help you identify the best potential practices to suit your circumstances.
David Brewer, Managing Director of FTA Finance, continues “we are proud of our record in partnering with buyers. Naturally securing the best financial deal is a big part of the purchase transaction. Last year we helped 175 applicants through the finance process with a 95% success rate on their applications”.
“It’s really where our experience and knowledge of the market pays dividends”, continues David. “If an individual was just to go to one finance provider with one application and hope for the best it would require a great deal of good fortune for it to actually be the best available deal for them. Our insight and knowledge of the market means we have access to the competitive rates, often ones that wouldn’t otherwise be available and our experience of the process means we can present your application in the best possible way and therefore greatly increase your chances of success”.
“We will undertake an affordability assessment, to make sure that the search is targeted at the right level and that any financial arrangement does not put unnecessary stress or risk on the buyer. It’s about getting the right balance, we obviously want people to buy the practice they want and to achieve their career goals, but it’s important we are realistic and ensure that they aren’t over committed”.
“We are independent and so therefore don’t have a vested interest in steering our clients in a particular direction or to a particular lender, other than the one that is right for them.”
“Whilst we are fortunate that many lenders do look favourably upon applications in the dental sector, it’s also important that we make it as easy as possible for a funding application to be approved. Our experience means we know what individual lenders are looking for, how to present business plans, cash flow projections and the other information required in an application. The better and clearer the presentation, the easier it is to get a “yes” and the better the underlying terms are likely to be”.
For more information on how Frank Taylor & Associates can help you in the purchase of a practice call 0330 088 1156 to discuss your requirements.
Practice - West Midlands
Practice location: This well-established practice is situated in a suburban area which has the benefits of beautiful countryside and yet only 20 minutes’ drive from the bustling city centre. The area has a great mix of residential and commercial properties and is undergoing further residential development which includes new schools.
Practice type: This is a three surgery fully private practice, 50% of which is under a capitation scheme 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 two-storey premises and has been recently refurbished.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £850,000 per annum and is generated by a balanced combination of capitation and Private. The income is generated by three full time associates who are supported by a part-time practice manager, three full-time dental nurses and two full-time receptionists.
Price achieved: A price of £1,100,000 was achieved which was in line with the asking price.
Agent's comments: This practice has undergone a refurbishment recently which means the new owner will have no capital expenditure to deal with. It has an established capitation scheme which has grown significantly post Covid and has provided the lending bank much comfort. There is room for expansion and the new buyer has already seen opportunities to extend the range of services.
Number of people looking in the area: 1,015
Practice - South West
Practice location: This practice is situated in a vibrant and popular suburb and is within two miles of a city centre with great transport links. The practice has several parking spaces available for patients and further free parking amenities nearby.
Practice type: This is a very well established two surgery mixed practice and is being sold to facilitate the retirement of the principal. The practice occupies the ground floor of a previous residential property and benefits from local footfall.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £375,000 per annum with almost a 50/50 split between private and NHS income and a UDA rate of £28 per UDA). The gross has been generated by the principal working full-time and two associates working a combined four days a week and a hygienist working 1 day a week. The team are supported by a part-time practice manager, a part time receptionist and three full-time nurses.
Price achieved: A price of £550,000 was achieved which was in line with the asking price.
Agent's comments: This practice proved to be very popular which meant the principal had several offers to choose from. The successful buyer is already a practice owner and plans on splitting clinical time between the two practices.
Number of people looking in the area: 896
Practice - Kent
Practice location: The practice is based in a suburban town on the outskirts of Greater London, within an area known for its diverse community. The practice is located close to the High Street of the town centre and is well connected with public transport. It also has the benefit of ample parking around the practice.
Practice type: This is a three surgery, fully private practice which is being sold to facilitate the retirement of the current principal. It has been established for over 30 years and being sold as leasehold.
Practice financials: The gross fee income is in the region of £850,000 and has been generated by the principal working four days a week, and four specialist associates working a combined four days a week and two hygienists working a combined three days a week. The team are supported by a part-time practice manager, a full-time receptionist and three nurses who work full-time.
Price achieved: A price of £1,600,000 was achieved which was in line with the asking price.
Agent's comments: This practice currently has no marketing activity and despite this has proved to be very profitable with a reconstituted net profit in the region of 40%. The incoming principal wants to develop the already wide range of treatments and is planning to introduce more cosmetic procedures and will market accordingly.
Number of people looking in the area: 1,663
Practice - Essex
Practice location: This practice is situated in a popular commuter town and is currently going through major modernisation and development, including both residential and commercial development.
Practice type: This is a two surgery, mixed practice being sold as leasehold. It has been established for over 30 years and is being sold to reduce the responsibility of the current practice owner.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £275,000. The income has been generated by a NHS contract with generates 55% of the income with a UDA rate at £31.54 per UDA. The income is generated by the principal working two days a week, two part-time associates working a combined three 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 and was slightly less than the asking price.
Agent's comments: This practice owner is ready to reduce the personal responsibilities of being a practice owner and is looking forward to continuing clinical work only. The practice is in need of some TLC, and this was acknowledged in the form of accepting a slightly lower price as the new principal will have to invest in capital expenditure to bring the practice up to date.
Number of people looking in the area: 1,773
