Typically, we look at the last 3 years or so of accounts when working out the profitability. To get you started, here are top tips from Dental Elite on key areas, from building the right career history to securing the perfect practice. Step 5: Due Diligence – this is a job for your legal team as they assess critical areas of the dental practice to ensure that you’re getting exactly what you’re paying for and there are no hidden issues. The UK dental market is buoyant, worth £7 billion and with underlying long-term growth driven by a number of factors. Many people ask us the difference between approaching a bank directly and using a broker, my answer is always the same: you can approach directly, but because we have experience dealing with the banks we have a very good idea which is the best bank manager to approach. “It just goes to show that if you put the work in and execute your exit plan carefully, you can achieve a lot more from your practice sale.”, “Having an agent as an intermediary between myself, my solicitor and the other party and to act on my behalf was very helpful, especially when it came to my solicitor who tried to add on additional charges”, “I wouldn’t hesitate to recommend Dental Elite to a friend or colleague.”, Dental Elite,  Suite 4,  Bloxam Court, Corporation Street, Rugby, Warwickshire CV21 2DU, Medical Elite Recruitment and Practice Sales Ltd t/a Dental Elite and DE Finance is authorised and regulated by the Financial Conduct Authority. If you buy a practice with an NHS contract, then there’s a 28-day period between the exchange and completion that adds to the NHS side of the deal. Registered Office: The Warehouse Anchor Quay Penryn Cornwall TR10 8GZ Registered in England & Wales No. The short answer is yes, you do. It depends on a range of different factors, but we can say that the average is anywhere between 5-6 months. … We act for many dentists throughout the purchase of dental … Definitely! Shop and Secure Insurance Policies. If you’re thinking of setting up a new practice then, it can be done for as little as £55k. Buying an existing practice … But before you can proceed to run and grow your practice, financing its purchase is the first port of call. Transfer your funds to the other party’s bank account, and you are the official owner of a new dental practice. When buying a practice there are many items that need careful and detailed consideration to ensure you have a smooth and successful purchase. A practice can be purchased on either a leasehold or freehold basis, so before you even start looking for your practice make sure you weigh up the advantages and disadvantages of both. Buying your first dental practice Buying a dental practice can be complicated as there are a multitude of things you need to contemplate. Medical Elite Recruitment and Practice Sales Ltd t/a Dental Elite and DE Finance can introduce you to a limited number of finance providers and may receive a commission for such introductions. If you get the structure of the business wrong it can cost you more in solicitor’s fees to correct it and you may not be able to hold the NHS contract within the structure, which in turn can cause delays in the sale and incur additional costs. Proposed working arrangements and working hours – how are you going to run the practice post acquisition? As there are a number of pitfalls that you can encounter during the transaction, it is absolutely essential that you surround yourself with professionals that have experience in doing recent transactions within the dental arena. As such it is a good time to invest in a practice (or a group of practices) or even to sell your own practice. Normally this decision is made on affordability, though from a banks point of view a freehold is tangible security and that makes them more confident. Equally DE Finance will help co-ordinate this information and handle any communication between parties to ensure that all documentation is completed and returned ready for completion. in buying and selling a dental practice. If you don’t have the funds, then there’s less chance of a seller accepting any bids as they can’t trust that you can gain the money needed to buy the practice. We have been … Review the information given to you by the seller’s team with your dental specialist solicitor, and if there any issues, raise them sooner rather than later. You could buy a practice with a fellow dentist, and this is a good idea if you want to split the costs. That practice came along when Aarti was pregnant with our second child. £400,000.00 Dental clinic - ... A financial guide to buying a dental practice 26/10/2020 Buying a dental practice is significantly different from buying a home or another business. We receive numerous new instructions of practices coming to the … Some dentists are getting ready for retirement and won’t have any need for the practice anymore. It’s rare for a sale to go through quicker than that, but there are instances where it takes longer. View our dental practice listings MediEstates is the UKs largest specialist dental practice broker and has been established since 2000. Understand why they’re selling, and this can help you gain the upper hand during the buying process. Typically, lenders offer unsecured loans up to £500,000 per dentist. As with any other property purchase, buying a dental practice … Company Reg No. 12075095 List of the Directors available from the Registered Address. Not only have we been helping the UK’s dentists to buy, start and sell dental practices for nearly 20 years, we are dental practice … Well, this will depend on the value of the dental practice, but it’s highly recommended you have at least a 10% deposit when you’re looking to buy. Stretching yourself to the top end of your financial capability could also jeopardise the success of finding funding. Get help from people with experience to do this! The landlord, selling dentist, and the lending institution may all … So, before you rush into buying one, make sure you know the EBITDA to figure out the market value! However if you are buying a practice you should not wait until you have purchased to make contact. If there are any errors or incomplete details the application will be rejected, so make sure you read the questions carefully and give yourself sufficient time to fill in the form (roughly about eight hours). We can give you an indication of deposit levels, how much work you will need to do in the practice and also let you know if we are confident that you will be able to secure funding against it. Yes, and this will be part of the clinical due diligence tasks. Buying my first dental practice in Managing your finances Within six months of completing VT and starting what I thought would be a long(-ish) associate career, I was given an opportunity to think about becoming a partner or completely buying the dental practice … Altogether, securing the right deal for you at the best rate possible is a selective process, so you need to make sure you are giving yourself the best opportunities. Medical Elite Recruitment and Practice Sales Ltd t/a Dental … Having a professional that really understands the acquisition will help with the smooth running of the sale and ensure that you don’t have any unnecessary delays. The buying and selling of a dental practice typically involves the buyer getting a bank loan to pay the seller. As a buyer, due diligence is largely out of your control, however, you must not become complacent at this stage. Within it you should include: Take advice from dental professionals on the best acquisition structure for you. We can picture the scene right now; you’ve been working as a dentist for some time, and you’re ready to make the next step. There are many variables to take into account, but most people will focus on EBITDA. That’s an excellent question, and the answer is yes, you will. The more profitable a dental practice is, the higher its value will be. Hundreds of practice owners trust us to handle their accountancy needs. There’s no real point going any further back as it doesn’t make much of a difference in the way the business is run today. So, never place offers without having the financial capacity to pay for the deposit. We’ve found that there are lots of questions that are commonly asked by dentists looking to buy a dental practice. Don’t worry, your solicitor will help you with this! Yes, nothing is stopping you from buying a practice that has an existing NHS contract. Checking the CQC inspection is vital – along with DDA compliance – as this shows if the previous owners actually followed any requests in this report. For those that don’t know, EBITDA is essentially the easiest way of measuring the profitability of a dental practice. Will the activities of the seller be restricted after completion of the sale? They know what to search for, they know the signs of red flags, so they can handle this and ensure you get the desired results. Dental Practice Sales & Purchases . 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