As concerns mount over recruitment issues and impaired growth of dental businesses, assistance from a specialist agency with dental experience is more vital than ever.

Dental Elite has many years collective experience across the team, and with a customer rating of 4.8 out of 5 it is one of the profession’s must trusted recruitment, sales and acquisitions, valuations and finance agencies.

“I would definitely recommend Dental Elite to others, and would certainly give them a call if I ever needed to find another job in the future,” says associate Justin George.

Veronica Balbontin who sold her practice through Leah Turner and Sue Humphrey also has high praise for Dental Elite. “The transition was seamless, and I am really happy with the service I received from both agents. They were both extremely helpful and very professional; I couldn't have completed the process without them.”

If you are experiencing recruitment issues, looking for a new role, or want to sell or buy a practice then visit Dental Elite on stand E26 at the BDIA Dental Showcase 2018.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

At the DentalForum UK 2018 held in Marbella, Dental Elite hosted an Ignite session on how dental groups are evolving and what will be the best route to market moving forward. Presented by Co-founder Luke Moore and the Director of Recruitment Services, Luke Arnold, the insightful session explored both the current difficulties surrounding recruitment, and how this might impair the growth of dental businesses in the future.

“It is no secret that practices are finding it increasingly more difficult to recruit,” reflects Luke Moore. “What we’re interested in is how this might have an impact on goodwill values, and in turn a principal’s ability to grow and sell their dental practice.”

Similar concerns were raised by a number of other delegates over the course of the two-day event, with recruitment and business growth discussed at length by a range of professionals.

“Above all else, this shows that everyone has been affected by the current state of the market,” adds Luke Moore, “not just independents. If anything, larger dental groups and corporates are feeling the affect more than smaller groups and individual practices.”

For more on current market trends or for advice on how these changes might affect you, contact Dental Elite.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

At this year’s Dental Awards hosted by Purple Media during the British Dental Conference and Dentistry Show 2018, Dental Elite was thrilled to sponsor not one, but two of the prestigious Awards.

The first, Website and Digital Campaign of the Year, was presented to Narberth & Herbrandston Dental Practices in Pembrokeshire, while Practice Manager of the Year was awarded to Lesley Holden from Sharoe Green Dental Practice in Preston.

Presented by none other than Dental Elite’s Director of Recruitment Services, Luke Arnold, the leading practice sales, acquisitions, valuations and finance agency is pleased to have once again been able to be a part of the Awards. He says:

“It’s always a pleasure to sponsor and present an Award, and we’re extremely happy to have been able to do it again this year. Congratulations to all the winners and category finalists.”

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

If you’re a practice principal you’ll no doubt be familiar with the term ‘exit strategy’. What you may not know is that your plan should be in place at least five years before you actually intend to leave. This gives you time to get all your accounts in order, identify the appropriate exit strategy and identify your personal goals for the future. Not to mention that it will help you secure a smooth exit and gain maximum return on your practice.

If you plan on selling the business as a way of securing monetary funds for retirement, then that time can be used to implement strategies that will help to maximise turnover and profits. Advertising and branding can help with this, as can having a dental practice valuation from a specialist valuations company.

As part of your exit strategy you should also decide whether you want to sell the practice outright or stay on part-time as part of a deferred consideration deal. Admittedly the eventual outcome may be outside of your control, but it’s definitely something to give thought to and plan. Especially if your intention is to depart immediately and settle for a smaller sum, as you may need to start your exit plan even earlier.

Of course, the better the planning, the more likely you are to achieve your personal and business goals. So if your heart is dead set on walking away from the practice and avoiding being tied into a part-time contract for several years after the sale, you’ll need to plan in advance to make that happen. Naturally, it’s best to contact a specialist dental acquisitions and sales agency that can help you to establish the most appropriate exit strategy that matches your objectives.

They will also be able to warn you of potential pitfalls to avoid. For instance, don't make the mistake of taking on fewer patients and reducing working hours too soon. All too often practice principals make this mistake, resulting in stagnation of growth and loss of income. As your profits decrease, so will the practice’s attractiveness to potential buyers and banks.

In regard to your staff, be sure to look at the way in which your associates are remunerated in your exit strategy to create an accurate overview of your practice’s performance and potential. Official associate agreements will be needed as well to protect the goodwill of the practice and assure potential buyers that the clinical team plans to remain with the business for the foreseeable future.

If retirement is on your mind or you’re thinking of moving on, then it may be time to start thinking about an exit strategy. Call Dental Elite for a free valuation, healthcheck and expert advice that will help you to achieve your long-term goals and realise your practice’s potential.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

“I first met Dental Elite at BDIA where they were presenting a lecture on practice sales and acquisitions,” reflects Dr Ninan Vettasseri. “Impressed with their experience and knowledge of the market, I decided to give them a call. And I’m glad I did, because not only was Katrina very supportive, but whenever there were hiccups she came up with a solution straightaway.

“If I could go back and do it again, however, I would do two things: Do my homework before putting the practice on the market and spend more time on marketing – the latter of which would have generated a higher completion price if I’d dedicated more time to maximising my practice’s potential.

“My advice to vendors would therefore be to plan well in advance and learn as much as you can about the process – not to mention to keep on track with UDA targets!”

For help planning your exit strategy in advance or selling your practice, get in touch with Dental Elite.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Now in its third year, DentalForum UK 2017 proved to be a captivating event. Here, Luke Moore, Co-Founder of Dental Elite offers his insight into some of the points covered by the expert panel over the course of the two-day Forum held by OpenRoom in the Algarve, Portugal. The elite panel included: Julian Perry, Director of Strategy at BUPA Dental Care; Dominick Flanagan, Co-Founder of Centre for Dentistry; Steve Williams, Clinical Services Director at Mydentist; and Anushika Brogan, Managing and Clinical Director of Damira Dental Studios Ltd.

This year, the discussions were primarily focused on the current issues surrounding dental recruitment, and how they are beginning to affect the profession. Importantly, it is just not smaller, independent practices that are struggling to recruit, but the big groups and corporates too – even in the South East, which as we know wasn't really an issue before. Indeed, it’s a similar story for every dental business right now, but an example from the forum that I feel really highlighted the extent of the issue was from Anushika Brogan, Managing and Clinical Director of Damira Dental Studios Ltd, who revealed that a recently advertised role in Oxford attracted one candidate who had 10 other interviews lined up. When you consider that once upon a time practices could advertise in the BDJ and get inundated with CVs, it is clear to see just how monumental this problem has become.

As part of this much larger issue, the panel took a close look at how difficulty in getting a performer number has had a knock on effect on recruitment. Historically, companies have capitalised on sourcing new recruits from other European countries, but because of Capita’s shortcomings in processing performer numbers quickly and efficiently (in some instances it has taken as long as 15 months), it is becoming less realistic to do so. In our current climate, overseas graduates simply can't risk being out of work for that length of time – and where there has been delays in getting a performer number, you can guarantee this information has been passed on to colleagues back home. With 17 per cent of dentists currently registered with the General Dental Council from the EU,[i] a drop in European workers could have a dramatic effect on NHS recruitment.

Adding to this problem is the fact that most deaneries require European dentists to have at least six months vocational training, not to mention that finding a mentor is becoming increasingly more difficult. The role itself requires a lot of time and effort, particularly as there is a lot of administration involved, so there is a feeling of reluctance from many in the profession to take on this responsibility. And why would they, when they could be in the practice meeting targets and making money?

The panel also considered how the next wave of new graduates could affect the current marketplace moving forward. It was the opinion of some that the quality of clinical skills being taught in universities today is lower than in previous years. Graduates are also thought to have a greater fear of being sued than previous generations of dentists, which has ultimately affected their delivery of UDAs (many are thought to perform an average of 4,500 – 5,000 units compared to the expected 7,000). As a result, more and more practices are struggling to meet their UDA target, which has had an impact on profitability and the bottom line. This could spell disaster for underperforming practices in the long run, especially if it begins to affect goodwill values, as the panel predicts.

For practitioners looking to enter the practice property ladder, they may well experience recruitment issues as a result of this. We have already seen some of the big corporates take a step back from buying in certain places (such as Darlington and Middlesbrough) because of the ongoing issues – and this will only get worse if the problems continue.

From my point of view, practice acquisitions must be approached with caution for the foreseeable future, especially in those areas where we are seeing underperformance in UDAs. As for the recruitment market, there is no denying that it is becoming increasingly more difficult to fill certain vacancies in the UK. As you would expect this problem is even worse in rural areas, but even more urban areas such as Oxford and Bedford are beginning to be affected, which is something to watch out for going forward.

DentalForum UK 2017 certainly provided food for thought for my colleagues and I. Let’s hope that we begin to see more positive change – if you have any questions in the meantime, get in touch.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

And the award goes to…

Every year the prestigious Dental Awards take place to celebrate the unwavering commitment and achievements of individuals, teams and companies within the dental profession.

At this year’s event, which was well attended by some of the profession’s leading lights, Dental Elite had the pleasure of sponsoring two Awards: Practice Manager of the Year and Dental Practice of the Year South. The Awards were presented by Recruitment Manager, Luke Arnold.

As always, the level of talent of the nominees was exceptionally high, which for winners Hannah Haines, Practice Manager of Inspired Dental and Reginald O’Neill Dental Care (Practice of the Year for the South) made victory even sweeter. The team is proud to have been part of such a distinguished occasion.

Dental Elite would also like to congratulate Edd Jones from Hartley Dental Practice and The Care Dental Centre in London for coming highly commended in their respective categories.

Dedicated to supporting the profession wherever it can, Dental Elite is thrilled to have been involved with the Dental Awards 2017 – here’s to doing it all again next year!

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

When Jamal Johnston sold his practice, he utilised the services of Dental Elite.

“I am very happy with the outcome of the transaction,” he commented when asked about the process, “and though it took slightly longer than expected, it still only took nine months.

“During the sale my representative was Leah Turner, who was very proactive and worked closely with me throughout the process.”

When asked about the challenges that he faced, he said:

“Without a doubt the most challenging part of the sale was due diligence. Had everything gone smoothly the deal could have been completed far sooner than it did, but because there were a few hiccups, the process was dragged out longer than it needed to be.

“My advice would therefore be to make all the necessary preparations and to start collecting and organising the documentation required for the due diligence aspect of the sale, even before you consider putting it on the market.”

There are a great many facets to selling a dental practice, so to ensure that you’ve got everything covered, make sure you utilise the services of a reputable practice sales and valuations agency like Dental Elite.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Renowned for its unique approach to recruitment, Accountancy Elite (a branch of specialist agency Dental Elite) is one of the leading recruiters for accountancy and finance in the Midlands area.

“I’ve used a few agencies throughout my career, but the service that I received from Accountancy Elite was by far the best I’ve ever had,” says Zuzana Juhasova, a client that was recently placed into a senior payroll administrator position.

“From start to finish, my representative (Matt Sweeney) was very helpful, approachable, contactable and accommodating – it really was a five star service.

“Plus, he kept me up to date every step of the way during the interview process, and even helped to negotiate my contract once I had been offered the job.

“I would definitely recommend Accountancy Elite to others.”

Are you looking for a role in accountancy or finance? Then get in touch with the team today.

For more information please call 01788 422186, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.accountancyelite.co.uk

When Henry and Jane McFarlane sold their practice in Burnham-on-Crouch, they decided to utilise the services of Dental Elite. When asked about it, Henry commented:

“Having gone to one of their lectures, I knew what documents were needed to complete due diligence. As such, we made sure that 95 per cent of the paperwork was ready before the practice even went on the market – and I would strongly advise others to do the same. We were in contact with Leah Turner, our representative for some years before we went to market; she helped us enormously in maximising the value of our practice.

“Leah was more than helpful with all the paperwork and was very positive, which is exactly what we needed in such a stressful situation.

“Helen, one of Dental Elite’s administrative staff, was also amazing. If we ever needed anything she would sort it immediately, and was great at problem solving quickly and efficiently – we really have got nothing but praise for the team.”

To view Henry and Jane’s interview in full, go online today.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

“Purchasing a practice and sourcing finance is both demanding and time consuming, so it is always good to get help from a team of experts,” says Zamir Raza, who recently purchased Serenity Dental Care. “Indeed, I would never have been able to do it alone.

“DE Finance helped me with the purchase of my practice from helping me to understand how the finance would be arranged, to sourcing the best interest rate, introducing me to the lenders and securing funding.

“Plus, because the practice was one that Dental Elite had listed, the sales and acquisition department provided additional guidance on how to complete the CQC registration forms.

“There were complications, but it wasn't DE Finance’s fault, it was delays caused by issues with due diligence and CQC registration, both of which were dealt with by the solicitors.

“I’m extremely happy with the rate that I secured as well as the service that I received – I would definitely recommend DE Finance.”

For the full interview, visit www.dentalelite.co.uk or contact DE Finance today to see how the team could help you.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

If you are looking to maximise your chances of success when applying for a role, it can pay to prepare for candidate screening. The only way to do that is to know what goes into it.

To help with screening, employers often use an initial checklist that can be used to quickly and efficiently establish whether an applicant is a suitable candidate or not. On that list will be a number of desired skills that the prospective employee must have in order to advance to the next round – these typically include the necessary qualifications, accreditations and registrations. They will also be looking out for candidates that have previous experience.

Once the employer has established which candidates satisfy all the requirements, they will examine personal qualities. If it goes down to the wire and two applicants are on an even playing field in terms of qualifications and experience, these attributes could be the deciding factor between who is selected to fulfil the position.

However, it is important to remember that no two prospective employers are the same, so there will always be variety in what practices are looking for during their screening process. Some companies, for instance, are very relaxed and will consider interviewing anyone that applies, while others are very selective. Some employers might even choose to conduct phone interviews either in place of interviewing or in addition to, though this typically depends on whether the vacancy is for a permanent or locum position.

Bearing all this in mind, there are a number of preparations that you can make to boost your chances of success during the screening process.

• Having a good curriculum vitae is the biggest foot in the door, so it is crucial that you spend adequate time ensuring that all the necessary information is included in a clear and concise fashion.

• You must also be sure that you have researched the company and the role thoroughly – and when you’ve done that, research some more. The more prepared you are, the higher up on their list you’ll be.

• About 80 per cent of employers will search for an applicant on Facebook, Twitter and LinkedIn, so whatever you put online, make sure it’s appropriate.

• Draw on your peers’ experiences for insight and top tips.

• Follow up on your application to confirm that it was received – it will show that you’re proactive and enthusiastic about the role.

• Contact the employer post interview thanking them for their time to help keep your name at the forefront of their mind.

• Employ the services of a specialist recruitment agency like Dental Elite for expert advice, support and to act as an intermediary between yourself and the employer.

Altogether, there are a great many factors that are taken into consideration by an employer during the recruitment process, all of which not only help to ensure that the right candidate gets the job, but also to streamline the process for everyone involved. To ensure that you meet the criteria and pass the screening process, take the appropriate steps to prepare today.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

At the end of 2015, there were 41,095 dentists registered with the General Dental Council (GDC) – a small increase from the previous year.[i] Despite these growing numbers there is evidence to suggest that some practices are struggling to recruit associates. This is particularly true for those offering NHS services.

One of the reasons behind this is a shortcoming of dentists with Performer Numbers, which means there is an undersupply of licensed candidates available to work in the NHS. Obtaining a Performer Number can be somewhat of a long winded and drawn out process with a lot of paperwork involved.

Because the process can be time-consuming and practices are often on a tight schedule, employers can sometimes end up just requesting applicants that already have a Performer Number. As a result, some dentists end up getting overlooked and practices miss out on taking on a promising individual that could have been an asset to the business. Smaller, more rural practices on the other hand are much more likely to offer a job to someone without a Performer Number due to lack of choice. As I’ve seen many times before, though, these practices run the risk of an employee handing in their resignation shortly after receiving their Performer Number to pursue a job in the city.

Because UK dentists automatically graduate with a Performer Number after the completion of their foundation training, there are no restrictions as they enter the world of employment – unless they leave the UK for 12 months, in which case their number is often archived and they are back to square one. In contrast, some foreign applicants have to pass the overseas registration exam (ORE) before they can register with the GDC, apply for their Performer Number and take on jobs. For some, this process can take up to two years and leaves a number of dentists without a job and practices without great applicants.

The other possible reason why practices occasionally struggle to find suitable staff despite a superabundance of dentists is that too many applicants either require mentorship or don’t have enough experience. At the end of the day practices have UDAs that must be completed and if a dentist with little experience cannot meet their allocated target, the practice will end up with a UDA deficit. In my experience, NHS practices also tend to prefer dentists with UK experience and knowledge of the NHS and UDA systems.

Then there is the matter of dentists that are looking to specialise somewhere down the line. It can be difficult for a general practice to take on someone who has ambition to become a specialist, because they are either going to leave or request that they go part-time to practise elsewhere. As such, some businesses are reluctant to take on such individuals, which in turn means they are required to consider applicants that might actually be less suitable for the vacancy.

And that’s not to mention the impact that competition has upon the recruitment process, not just from an associates perspective but also from an employers. To attract the best dentists in the profession, practices are now offering what is known as a golden hello – a one off payment of anywhere between £1,000 and £10,000 to entice them into joining the practice. This is usually tied in with a clause so that if they leave within the first 24 months of their contract, they’ll be required to pay that money back.

We have also noticed a rise in the price being offered to dentists per UDA, which is also likely to attract a high calibre of ambitious dentists. Before, the going rate was £10 per unit in most cities and towns. In an effort to make contracts more appealing to top tier candidates, however, some practices are now offering £10.50 to £11.00 per UDA – and that number could well creep up over the coming months. The other popular financial incentive is to offer commission for referring a patient to the hygienist.

A tactic used by larger, more established practices is to offer more clinical freedom to associates looking for a less regimented work environment. From what I’ve seen, the practices that tend to be most successful are usually those that are more forward thinking in their approach with staff. This includes allowing staff to have more flexibility in their working hours to attend training and to continue with their studies.

It is also important to remember to be forthcoming with applicants about the patients that are on the books, for instance, the ratio of private to NHS, demographics and so on. This can help to give them an idea of what it would be like working for the practice.

With so many factors to take into consideration, recruiting an associate is no easy feat. For that reason it can be prudent to enlist the services of a specialist agency such as Dental Elite. With the right help and expertise, the profession can operate at its full potential.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Dental Elite is pleased to announce that it has been awarded membership to the National Association of Commercial Finance Brokers (NACFB).

Having gone through a rigorous process, Dental Elite is now a member of the UK’s trade body for business finance brokers – an accolade that only a few other companies within the dental sector can boast.

With this associateship, Dental Elite can continue to offer its clients an excellent service with the additional support of the NACFB, which exists to safeguard both its members and their clients against fraud and restrictive practices.

Its aim as one of the largest agencies in dental recruitment, finance, valuations, acquisitions and sales is to ensure that its clients receive a transparent, impartial and ethical service that ensures the optimum outcome is achieved.

For more information, contact the team today.

For more information contact DE Finance. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

To show its dedication to the industry, Dental Elite recently pledged its support to the Annual Conference of Local Dental Committees 2016 for the fourth consecutive year.

As Gold Sponsor of the event, the leading practice sales agency was proud to be able to offer its knowledge and services to dental professionals debating about the wider issues of dentistry, having already acted for a large number of the attending delegates successfully in the past.

If you missed Dental Elite at the conference, don't worry – the team will be exhibiting at various top calendar events and supporting more local LDC meetings and study groups throughout the next year.

If you are interested in receiving support for your event, contact the team today.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Emma Watkins was recently placed into Portman Healthcare in Faringdon, Oxfordshire as a Dental Receptionist.

Although her use of a recruitment agency was entirely accidental, she had nothing but positive words when asked about her experience. She said:

“While it did come as a bit of a surprise that I had inadvertently used a recruiter, I did find it very useful having someone I could discuss the position with –especially post-interview when I was keen to find out how it had gone.

“What’s more, I enjoyed the fact that I was able to distance myself from the process of arranging the interview and so on with the practice manager.

“Having now used Dental Elite, I wouldn't rule out using a recruitment agency if I was looking to step up the ladder.”

Emma also reflected on whether she would recommend an agency to other professions:

“When you’re working full time, job hunting can be a job in itself. Using a recruiter allows you to find a position without having to apply for separate jobs and without having to do any of the work. For that reason, I would definitely recommend an agency to other professionals.”

To find out more about Emma’s experience with Dental Elite, visit the website today.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

When it comes to selling a dental practice, no two sales are the same. From variations in goodwill to due diligence to the type of contract in place, each process is unique. The latter in particular can have a huge impact on the overall transaction, especially NHS practices with an orthodontic contract.

There is no doubt that NHS practices are highly sought after and they typically command higher prices than private practices. However, since the implementation of the dental contract reforms in 2013 – in place of the original 2006 framework – the process of selling a practice with an NHS orthodontic contract has become much harder. It is important to note that if you hold an NHS orthodontic contract, you most likely have a PDS agreement – and it is this not so small detail that will affect the way in which your practice is sold.

From PCT to LAT

The difficulty stems from the fact that unlike GDS contracts, a PDS agreement cannot be shared through partnership. When contracts were under management by PCTs the transfer was sometimes viable, as although there was provision for this within the drafting of the PDS agreement, most turned a blind eye to the absence of the relevant clauses, or simply didn’t know the difference! So what’s the alternative? Essentially, there are two possible pathways; you can either sell the assets or incorporate to sell the shares.

Gain Consent From NHS

The first way an orthodontic practice can be sold is though the sale of assets accompanied by a direct transfer of the contract between the seller and the buyer. However, this can only be achieved with permission from the LATs, which requires long and laborious negotiations. It is important to note that as the NHS is under no obligation to accept a proposal to transfer a contract, this is not a guaranteed route. In fact, this is incredibly rare as most are petrified of being challenged under the EU Procurement Regulations.

Incorporation

The other option is to incorporate the dental practice into a limited company structure, which means transferring the company’s assets as well as the contract to the limited company. By selling the shares to a buyer, the transfer can then be completed. Although incorporation is certainly a viable option for practices with an orthodontic contact, it is not one that comes without difficulty. Once an initial request has been made an LAT will consider each application individually based on its merits and key criteria. Only an approved application will progress to the next stage of being issued with a new PDS contract in the name of the limited company. As it stands NHS England Policy allows LATs to approve these requests but there are still local politics to deal with, and many try and refuse such applications. They can demand a benefit for the application, with the focus typically placed on how the incorporation will benefit the LAT itself rather than the practice. You guessed it – a price per Unit reduction! Thus, it would be prudent to accept that certain compromises may need to be made in order to incorporate, and later sell, a practice.

Lastly, it is important to note that if a PDS contract is permitted to become a limited company and a practice decides to sell, the LAT must give approval and produce what is known as a Deed of Novation. This is an agreement that transfers one party’s rights and obligations under a contract or agreement to a new third party. But what does this entail? The first section of the document that sellers should be aware of, is that the LAT will require a personal guarantee from the contractor that the contract will meet requirements and perform to the expected standard. Similarly, this is also a lifetime financial guarantee against under-performance – a guarantee that cannot necessarily be swapped to a purchaser at a later stage.

However, because of the way the Deed of Novation is designed, the LAT is not obliged to agree with the sale. Due to the change of control clause, any transference of share holdings of 10% or more must be approved by the LAT. While there would need to be a valid reason for the refusal, it’s an aspect of the process that is important to be aware of, as challenging the refusal is very difficult.

All in all, selling a PDS orthodontic contract is not a straightforward process – but it is not impossible. Seeking the advice of a trusted and experienced agency in this situation, such as Dental Elite, is therefore imperative, and will ensure that you follow the procedure to the letter.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

“Whilst at a seminar on ‘selling your practice’, I met Luke Moore, a representative of Dental Elite” says Dr John Campbell who has recently sold two of his practices. 

“The valuation was organised promptly, we had a fantastic response and we received the full asking price.

“Despite the fact that a deferred consideration was involved pursuant upon contract extensions, Luke’s confident and professional approach eased the process; to date the deferred considerations have been met with no issues.”

Naturally, when it came to selling his second practice, Dr Campbell felt that there was really only “one choice of broker.”

“Full asking price was once again achieved and this time without a deferred consideration, despite only one year remaining of the contract!” John adds. “I think that this is testament to Dental Elite’s accurate understanding of the dental market.

“I would whole heartedly endorse Luke and Dental Elite for their thoroughly professional and supportive approach to selling a dental practice. Selling can be a very stressful event but Dental Elite certainly eased the process! I would without hesitation, recommend Luke and his company to any colleague, and indeed have already done so.”

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Looking to buy a dental practice? Don't forget to consider the effect intangible values such as customer base, rapport and employee relations will have on the goodwill premiums that might be incurred.

As the market becomes increasingly more aggressive and competitive with practices in high demand, goodwill premiums are growing in occurrence and increasing in magnitude. This will affect the amount that you will have to pay on top of the valuation price.

With over 100 combined years’ of experience and expertise, the team at Dental Elite are committed to providing financial advice to those looking for a smooth and hassle-free acquisition.

Knowledgeable and attuned to current trends, Dental Elite offers a person-centred single point of contact service to ensure you don't go over budget and get out of your depth.

Don't get caught out with goodwill premiums; contact Dental Elite today.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Whether you are looking for your first, next or last dentist role, it can be difficult to know which pathway to take.

Experienced and up-to-date with the latest market trends, Dental Elite could help you consider all of your options.

Dental Elite offers a single point of contact service from one of its knowledgeable specialist recruiters and has a vast database to help you find your ideal job.

Corporate or independent, private or NHS, permanent or locum and general or specialist, Dental Elite has a vast range of vacancies available.

If you are looking for something different, Dental Elite could even find you a role within the community, in a prison or on a military base.

To find out more about current vacancies and how Dental Elite could help you, contact the team today.

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

“Having previously attempted to sell with another agent, I made the decision to advertise through Dental Elite,” says Patricia Webley who recently sold her practice.

“Within a very short time of the advert going live, I had two interested parties – one of whom viewed the practice and offered the full asking price within days.

“All in all the process took eight months to achieve completion and I am very happy with the services provided by Dental Elite.

“As my point of contact throughout the negotiations, Leah Turner ensured that all the necessary administrative requirements proceeded smoothly.

“What’s more, she liaised between both parties to make sure agreement on all issues were swiftly resolved.

“She also recommended a dental-specific solicitor who proved to be very helpful.

“I would be very happy to recommend Leah Turner and Dental Elite to anybody wishing to buy or sell a practice.”

To find out how Dental Elite can help you sell your practice, contact the team today.

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

We all have the dream of owning our own practice, however the thought of making that transition is often frightening.
 

My first thought was, what can I afford? The only loan I’d ever got was for my home, and that was in the days banks were handing out money to anyone and everyone. This is where Dental Elite (DE) Finance, and in particular Becki, were invaluable. Long before I found the right practice, Becki had taken all the relevant information from me and let me know what I could realistically expect to get from the banks given my circumstances. This really narrowed down my search criteria, allowing me to stop wasting time on those practices that were out of my reach.

This was to be my first acquisition, for a reasonably sized practice in South Yorkshire with a healthy NHS contract. Before committing, DE Finance ran through all the figures again, ensuring the purchase was financially viable, before we moved forward.

In between dealing with the sellers and our respective solicitors, as well as having to turn up to work each day, I didn’t have time for much else. In DE Finance I felt like I had a PA, with Becki contacting all the major banks (and some I’d never heard of) on my behalf, leaving me to get on with other things. I left Becki to fight my corner as to why they should lend someone who has never run a business, let alone a dental practice, such a large sum of money. This I thought was going to be the most stressful part of the purchase, but it turned out to be the easiest.

Becki had influential contacts in all the right places, and offers from the banks quickly came rolling in. More importantly, because Becki was involved, the banks knew they would be competing against each other, and subsequently provided offers at fantastic rates. I certainly didn’t have time to approach all these banks myself, nor would I have received the rates I did.

Things didn’t end here however. Becki followed the process right through to completion and beyond. She was always there when I needed to contact her, even out of work hours. When the bank was labouring with the sale at times, she would intervene on my behalf and get her contact to push things along. It was great just being able to pick up the phone when I wasn’t sure about something, to receive some expert guidance, or even just some much needed reassurance.

Would I recommend Becki? Absolutely, without hesitation. I know who the first person I ring will be when I’m ready to make my next acquisition, even if it’s not a dental practice. And what did this fantastic service cost me? Nothing, not a penny!

Thank you Becki for making this whole process so easy for me.

- Imran Ahmed

Turbo charge your Turnover
 

Website optimisation can be a cost effective and easily integrated marketing strategy for a dental practice to pursue. Practice owners need to spend time dedicated to the clinical aspects of a dental surgery, and this is where their expertise lie. However, this can result in the business side of the practice being neglected having detrimental effects on the revenue flow, so owners need to identify tactics that have maximum impact with minimal disruption on the care of their patients.

The internet has transformed the way in which businesses can communicate to both their current and potential patients. It is another channel that can be utilised to target specific groups with a tailored message that will resonate with their needs. Most UK dental practices have a website, even if it is not fully optimised, and there are a number of routes that a new patient can take to find it. The majority probably start from a well-known search engine and if a website has been designed effectively, it should have a high enough organic ranking to be featured in the first few search results.

However, many websites have to work proactively to acquire a prime position. One method is to pay for advertising. The advertisement needs to be carefully considered to ensure its effectiveness: concise, informative and intriguing. However, this does not guarantee a new patient, with the average conversion rate currently presenting at only 2.5%.  An important tip to increase sales conversion is to ensure that the landing page from the advertisement supports the message. If the landing page does not give the information that the patient requires at first glance, then the viewer is unlikely to spend any more time on that website. Also, it’s important that the potential new patient can easily make contact with the practice through simple forms of visual contact details. Even if the potential new patient does not convert following initial contact, this data can then be used to communicate with the ‘hot lead’ in the future.

With over a hundred years’ of experience across the team, Dental Elite can offer your practice a ‘Health Check’ and practical advice on how to achieve your objectives. Dental Elite will work with you to ensure the practice is optimising its revenue stream with view to maximising the valuation for when you come to sell. The Dental Elite directors have experience in marketing and Search Engine Optimisation and so these activities are at the core of the service offered.

Web site optimisation can be a powerful marketing tool to drive new patients to your practice, maximise their investment once there and increase the practice’s revenue stream. With just a few simple tactics applied online, the practice’s potential reach to new patients is enhanced with minimal disruption to clinical care.

For more information visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

The dental practice goodwill values for the last financial year ending March 2015 are out at last, and average practice sales with Dental Elite as a broker have risen to 3.23x adjusted net profit, 6.99x adjusted EBITDA with 137.8% as a reflection of turnover.

“I think anyone involved in dental practice sales and goodwill values will have noticed that the market has gained considerable strength,” reflects Luke Moore, Co-Founder of Dental Elite. “Most practices this year have achieved over and above our valuation.”

This year, NHS practices are displaying a 3.66x ANP, 6.79x EBITDA and 156.70% turnover compared to mixed practices, which sold for an average of 8.98x adjusted EBITDA or 3.56x ANP with a reflection of turnover standing at 136.02%.

“The breakdowns are very interesting,” says Paul Wilkinson, Co-Founder of Dental Elite. “It would seem that mixed practices tend to sell more to dentists who seek to work in the practice themselves, hence the slightly higher EBITDA multiple which is counteracted by the lower Adjusted Net Profit. It is also interesting to see Private Practice Multiples starting to narrow the gap between NHS Practices.”

To find out how you can get the best deal on your practice, and for a free, no strings valuation, contact Dental Elite now.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

“I was very happy with the service I received from Dental Elite,” says a Principal from Sussex who has recently sold their practice. “My representative was very supportive and I found it extremely valuable to be able to deal with the same person throughout the whole process.

“I thought the valuation process went very well and I was pleasantly surprised at just how flexibly the figures could be analysed.

“I would highly recommend Dental Elite to other professionals – in fact I’m singing their praises to all of my colleagues.”

Dental Elite prides itself on being able to offer dental professionals honest and pragmatic advice when it comes to selling their practice. With a wealth of hands-on experience and a dedication to seeing a job well done, the friendly team at Dental Elite are always ready to help.

To find out just what they can do for you, contact them today.

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Selling a dental practice can be stressful, especially when it comes to completing the CQC Registration Process. Since changes to the paperwork on 1st April 2015, it is more crucial than ever to ensure the form is populated correctly and accurately.

As a leading specialist in practice finance, sales and valuations, Dental Elite is dedicated to providing first class advice that helps simplify the process of selling your practice, referring the contract and deregistering as the owner.

For just a small fee, the majority of which is donated to charity, Dental Elite is offering a not-for-profit service for anyone requiring CQC application support.

Because Dental Elite understands what selling a practice means to you, it works alongside charities BDA Benevolent Fund and Bridge2Aid, investing its time and money back into the dental community.

Anyone already buying, selling or financing with Dental Elite will receive this service included as standard for free.

Contact the friendly, profession team at Dental Elite today and discover how it can help you with your sale and CQC application.

For more information visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

In 2006, the NHS and Primary Care Trusts (PCTs) introduced the current funding system to NHS dental practices based on the amount of Units of Dental Activity (UDAs) completed in one year. Since NHS England took over the responsibility from PCTs in 2013 operating this system, a total of 27 Area Teams replaced the 150 PCTs nationwide.

There is no sign the pressure on practices to reach their UDA targets will ease. In fact, underperforming practices today could be finding the targets even harder to meet; any shortfalls in one financial year are carried over to the next, meaning a ‘rolling’ deficit is a real concern for year-on-year figures. During this financial year, NHS England is also required to reduce running costs by between 10-15%, so if anything a tightening rather than a slackening of the rules on meeting targets is inevitable[i].

In the quarter of the financial year ending December 31^st 2014, the NHS published data showing that in England, 88.8 million UDAs had been commissioned. This presented a 0.8% decrease from the same quarter in 2013, equating to 696,000 fewer contracts and also 90,000 fewer contracts than were commissioned in the previous quarter of 2014[ii]. This situation has had a knock on effect that determines the prospect of selling those NHS practices struggling to make the quotas they’ve been allocated. 

The sale of practices with NHS contracts in some areas of the UK has been detrimentally affected where NHS England has over-commissioned dental services. Simply having enough people in a locality to justify a contract hasn’t proven to be reason enough to award one. It doesn’t automatically follow that the community wants more NHS dentistry; they may instead prefer long-standing local private practices, or worse still, not be seeking dental services at all.

Failing to be within 4% of the fixed year-on-year target can be catastrophic, in the most extreme cases practice contracts can be terminated. In examples such as underperformance or closing during contractual hours, NHS England initially serves a breach notice but if the practice then makes any kind of future breach of contract (which may be for an entirely different reason) the contract can be immediately revoked. NHS England will then negotiate a new contract, with less funding. Also, the degree of leniency previously afforded to NHS dentists will diminish with Area Teams having to enforce a harsher approach and breaches of contract are far more likely to be issued this financial year than ever before. In cases of underperformance alone, NHS England may deem that a practice was over-funded for the services being provided and will effectively ask for a refund from the practice (a claw back).

Nowadays, competition is fierce between NHS practices to entice patients through the door so that they have a fighting chance of meeting their UDA targets. This fact contributes towards complicated agreement negotiations when valuing a dental practice for sale. Purchasers (and their financial backers) involved in buying NHS practices must thoroughly research and become assured that the UDA contracts can be maintained and that they have the finances for any necessary improvements to facilitate this. Sellers on the other hand, will want to ensure that the post-completion obligations and liability are kept to a minimum. In short, a shrewd perspective and business plan are two essential ingredients for all involved in the sale of NHS practices. The predicted outcome of patient recruitment plans and any expense involved in them needs to be assessed and built into the valuation of the dental practice for sale.

A claw back of 500 UDA’s is equivalent to a £11,000 reduction in funding (based on average treatment costs) which can seriously undermine profit, so a potential buyer will need these kinds of figures incorporated in the practice value. Essentially, you are on your own in terms of building a patient base, NHS Clinical Commissioning Groups play no part in filling appointment slots. This means examining the practice’s current performance to see if there is room for improvement on reputation and profit.

Action plans cover anything from a complete re-fit of the surgery and reception areas, to designing a trendy website, prioritising SEO and right down to the skill of your receptionist in welcoming patients and putting them at ease. The team at Dental Elite can help you identify key areas to note during the sale of NHS dental practices whilst retaining a realistic view of the changes that actually need to be made to the business; often the simplest aspects such as chairside manner and the comfort of the patient waiting room are the cheaper and most effective alterations needed.

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

With extensive knowledge of the dental market and an excellent single point of contact service, Dental Elite is one of the leading companies in dental recruitment, finance, valuations, acquisitions and sales.

“My representative was very supportive and I found it extremely valuable to be able to deal with the same person throughout the whole process,” says one principal from Sussex who recently sold their practice.

“I also recommend Dental Elite,” says Chris Hobley from Northamptonshire. “Their attention throughout the sale and follow up was excellent.”

It is clear to see that Dental Elite strive to go above and beyond in delivering personalised support and assistance. That is why they also go the extra mile to assist with CQC applications, offer advice and insight in EDITDA and use a clear and transparent fee structure.

What’s more, two members of the team will be taking part in this years London2Paris bike ride on behalf of Bridge2Aid, and Dental Elite promise to donate £5 for every set of details taken leading up to the charity event.

To register your details and show your support, visit Dental Elite at stand I135 at the upcoming BDIA Showcase and enjoy a drink in their complimentary wine bar!

For more information on Dental Elite visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

When Chris Hobley decided to sell his dental practice in Northamptonshire, he was lucky enough to have the practice valuers and finance experts at Dental Elite close by.

“I was selling because of personal health issues,” explains Chris. “Dental Elite were conveniently located for me, so I chose to work with them. Throughout the process our consultant, Alison, provided excellent and personalised sales care.

“She actually valued the practice at almost double the yield of some competitors – and we achieved Alison’s valuation!

“I think one of the biggest challenges I faced was the level of administration that was necessary for the CQC Application and the NHS paperwork but, overall, the sale took about 10 months to complete.

“My advice to professionals in the same situation would be to sell to a buyer that you like and who would be most suitable for your patients.

“I would also recommend Dental Elite; their attention throughout the sale and follow up was excellent.”

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

If you thinking of selling your dental practice, you need not look any further than Dental Elite.

“Dental Elite was recommended to me,” says Paul Robinson who recently sold his practice to a corporate company. “And I was pleased with the service they offered. The representative that worked with me was very good, very approachable and highly knowledgeable.

“The sale only took nine months and, while there was much work to do, Dental Elite managed it all efficiently.

“I would recommend their services to other practitioners who are ready to sell.”

As the second largest specialist practice sales agency in the country, Dental Elite is in the perfect position to help you when the time comes to sale your practice. By offering practical and honest advice, they can ensure the entire procedure goes smoothly, from the initial business valuation to the transition process.

If you are seeking professional guidance, don’t delay in getting in contact with the friendly, efficient team at Dental Elite.

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Dental Elite are experienced dental recruiters who work solely with the dental profession to help practices find the most suitable individuals to engage in locum or permanent positions.

With the aim of providing an efficient and effective service to all clients, Dental Elite hopes to become a natural ‘first port of call’ for all your recruitment needs.

Dental Elite offers professional advice on contracts of employment or contracts for services (for self employed staff) and can help with any aspect of recruitment.

For advice and guidance on helping your practice grow from strength to strength, contact the experienced team of consultants at Dental Elite today.

For more information and to find out how Dental Elite can help to recruit the most suitable members of your dental team visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it.
or call 01788 545 900

Practice valuers and finance experts at Dental Elite are now offering new online CQC Application Support, so you never have to worry about filling in difficult CQC applications again.
 

This service is now available for purchase to anyone – not just for those with transactions being financed or sold by Dental Elite – and what’s better, after a small administration fee, all proceeds will be generously donated to one of the participating dental charities, including Bridge2Aid and the BDA Benevolent Fund. For current clients, this service is completely free but Dental Elite will still make a donation of £150 to the client’s dental charity of choice.
 

With a team that is proud to have over a hundred years of experience in the dental sector, Dental Elite is in an ideal position to help professionals in all aspects of selling their practice. By partnering with a number of different charities, they can make sure this help is extended to the entire dental community.
 

To discover what else Dental Elite can do for you, contact their friendly team today.
 

For more information and to find out how Dental Elite can value
and assist your practice sale visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Written by Luke Moore of Dental Elite

Dental practice valuations are often shrouded in mystery but they needn’t be; here we give you an insight into the process behind the numbers.

It’s true that since the introduction of business-focused stakeholders into the dental profession, as well as a more concerned credit team in lending banks; the computations behind goodwill valuations require more logic.

Demand for dental practices prior to the 2006 NHS contract and the relaxation of the Dentists Act 1985 was far more limited than in the present market. The NHS contract change installed a scarcity value in NHS contracts, restricting competition significantly. With one of the main concerns business owners previously had removed, practice values doubled if not tripled by August 2007.

Valuing a dental business is now much more of a thought-provoking process and solely using percentages of turnover as a method of calculation is no longer satisfactory.

Alternatively, EBITDA modelling can be used to provide the true operating profit of a dental practice, however, multiplication of a practice’s existing EBITDA does not serve as an accurate calculation of practice valuation either.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation, is an accounting acronym that does exactly as it says. The process of calculation involves removing all of the non-cash costs in your accounts such as depreciation and anything that a new practice owner would not continue to incur. Once the EBITDA figure has been established, this is then multiplied depending on the company, market and economic climate.

Currently, dental practices are being sold for between four and seven times their EBITDA. This can vary depending on a number of factors, however, generally the lower the perceived risk and the more sustainable the profit is (or is perceived to be) the higher the profit multiplier.

Unfortunately calculating this is not as simple as one might think and many practices are far less clear-cut. Practice A and B are radical examples, but even a small difference of £20,000 in projected EBITDA terms can be the equivalent of £140,000 in value.

It is also important to remember that your profit and loss EBITDA calculation will not be the same as the buyer’s EBITDA. This is because EBITDA and multiples rely on each other to make the valuation work, for example, five times profit and loss EBITDA might not be as attractive as a purchaser’s adjusted net income at four times. Furthermore, the EBITDA used may not always be your actual EBITDA. When analysing the valuation, it could be that the amount of money you spend on associates, materials, labs, staff and other areas is higher than what other buyers would spend. Therefore the higher valuation may come from a lower valuation multiple, multiplied by a higher projected EBITDA.

Calculating the valuation of your dental practice is not a simple procedure and a number of variables need to be taken into account. Working with trusted experts, such as Dental Elite, who can offer you the necessary advice and support is crucial.

Dental Elite is the second largest specialist practice sales agency in the country, offering a comprehensive and transparent service. The experienced and knowledgeable team can provide you with a free and non-committal valuation. Following a visit to your dental practice they will provide you with a Healthcheck Report, which demonstrates exactly how they have calculated your practice’s value and how it could be improved.

Although dental practice valuations remain as much a work of art as they are a science, understanding the process will reduce the mystery surrounding the calculations. By working with professionals who are experienced and current in dental practice valuations an accurate and transparent valuation will be achieved.

For more information and to find out how Dental Elite can help you, visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900