Time Spent Planning, Saves on Execution
The amount of information available to us in the digital age has many advantages and can allow us to feel better informed when making a decision, from hotel reservations to grocery selection or film and book reviews. When the financial stakes of the decision are higher, then it’s natural to want to research a bit more comprehensively, seek the best advice and to get counsel from the best sources. Sometimes the volumes and content of advice online can seem overwhelming, and at times, contradictory.
For many the purchase of a dental practice may be a once in a career event, and almost certainly their biggest career financial decision. To help would be buyers, Frank Taylor & Associates run a masterclass to help explain and outline the key steps in the buying process, combining lessons learnt, anecdotes and ‘dos and don’ts’ gained from years of experience over thousands of transactions. The course separates fact from fiction and provides the reassurance of a single source of well qualified advice and provides an opportunity to network and knowledge share with other delegates.
Amongst the topics covered are the practicalities of the transaction itself, understanding your budget, sourcing independent financial advice, ensuring you can get the best deal and how to obtain an Affordability Assessment Certificate which essentially confirms you as a serious buyer to any potentially seller.
There’s also a session on the location of the practice, how to decide where to buy and ensure it works for you. Considerations such as the daily commute, accessibility and whether there are peak times of the day or year when the practice or the surrounding area are particularly busy should be reviewed.
Experts will also discuss the importance of choosing a practice that suits your own clinical skillset and aspirations, for example NHS or private or a practice with an orthodontic, cosmetic or paediatric bias.
You’ll also learn what to look for when undertaking a viewing and how to compare practices against your own preferences and selection criteria. In addition, there’ll be time devoted to explaining the steps in the process and some very useful tips that will ensure you, as the buyer, can maintain momentum in the process, be on top of the admin required with solicitors, lenders and CQC representatives for example and therefore give yourself the best chance to successfully conclude the transaction.
Feedback from this year’s events was positive with delegates praising the “engaging and informative” content and enjoying the detail regarding numbers and finances.
The next masterclass will be held on 22nd March 2025.
Secure your place now – it’s never too soon to start preparing.
Practice - Surrey
Practice location: This practice is situated in one of the London Boroughs with excellent transport links into the city. There are several dental practices in the area, but sufficient footfall that all practices appear active and thriving.
Practice type: This is a two-surgery mixed practice and is being sold as leasehold with a new 15-year lease being created. It is based on the ground floor of a commercial property and has been established over 50 years.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £350,000 per annum and is predominantly NHS with a UDA rate in excess of £36 per hour. The income is generated by the principal working two days a week and two associates working a combined three days a week. The team are supported by two full and two part-time dental nurses/receptionists.
Price achieved: A price of £850,000 was achieved which was in line with the asking price.
Agent's comments: This practice is just perfect for an associate transitioning into practice ownership, and we received several offers which enabled the principal to make a decision as to who he felt would be the best to take over a practice that had been in his safe hands for more than two decades.
Number of people looking in the area: 2,054
Practice - Home Counties
Practice location: This practice is situated in a predominantly residential area of a busy home counties town. It is located on a main road and close to a large shopping complex and the surrounding area offers a wide range of amenities with many good schools in the vicinity.
Practice type: This is a very well-established five surgery predominantly NHS practice and is being sold to facilitate the retirement of the principal. The existing leasehold is about to be renewed with a 15-year lease to be in place. It is a shop-fronted premises with room to expand and ample street parking nearby. This is an associate run practice.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £1,400,000 per annum and is almost 100% NHS. The income has been generated by the principal and six associates, four of which are full-time and two part-time working a combined six days a week, and a hygienist working 2 days a week. The team are supported by a full-time practice manager, two receptionists and six full and part-time nurses.
Price achieved: A price of £2,750,000 was achieved which was in excess of the asking price.
Agent's comments: With a significant UDA rate this practice was attractive to both corporate and independent buyers and it was the choice of the seller to opt for an independent buyer who already runs a significant practice with an excellent reputation. There is an ambition to extend the practice and create a private dental practice to run alongside the already successful NHS element.
Number of people looking in the area: 3,540
Practice - Hertfordshire
Practice location: The practice is situated in an affluent town which was set up as a squat 25 years ago by the current principal. There is a healthy mix of residential and commercial properties and located close to the High Street. It is well connected with public transport and has the benefit of ample parking around the practice.
Practice type: This is a four-surgery, mixed income practice that is being sold to facilitate the retirement of the current principal. It is being sold as leasehold with a new lease being created by the existing principal.
Practice financials: The gross fee income is in the region of £1,500,000 of which 60% is private and 40% NHS. The income has been generated by the director working three days a week, six part-time associates, two specialists working a combined two days a week, and two hygienists working a combined three days a week. The team are supported by four full-time and two part-time nurses, and a full-time and two part-time receptionists.
Price achieved: A price of £2,900,000 was achieved which was in excess of the asking price.
Agent's comments: This practice has been purchased by a small corporate who have quietly been building their portfolio and this one just fitted perfectly. We always say you only need one buyer and with over 5,000 associates and entities registered the odds are good!
Number of people looking in the area: 2,096
Practice - Surrey
Practice location: This practice is situated in a prime spot close to all amenities in a prosperous town and benefits from excellent footfall. It is very well connected for transport links and 74% of the population are in the social grades of AB.
Practice type: This is a three-surgery, mixed practice being sold with the freehold. It has been established for over 75 years and is being sold to release the current principal from the administrative burden of running a business.
Practice financials: The gross fee income from management information for the past 12 months is in the region of £650,000 and is an even split of private and NHS dentistry. The income is generated by the principal working four days a week, a full-time associate and a hygienist working two days a week. The team are supported by a four full-time dental nurses/receptionists.
Price achieved: A price of £1,200,000 excluding the freehold was achieved and this was in line with the asking price.
Agent's comments: The current principal has really enjoyed his career in dentistry and interestingly his focus has been on the NHS element of the practice leaving the associate to focus on the private side. The principal is keen to remain at the practice as he has not lost his love for clinical work.
Number of people looking in the area: 2,054
