“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

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

Benjamin Franklin, writer and scientist once said, “By failing to prepare, you are preparing to fail”. This philosophy can be applied to many situations, including that of selling a dental practice. Whether you are looking to reduce the burdens you shoulder, or are ready to move on to something new, preparation time put in before the sale can make the transaction much quicker and smoother.

There are many benefits to owning and managing a dental practice, but sometimes the administrative tasks and regulatory compliance can mean dentists lose focus of the reason they entered the profession in the first place –to care for patients. As with any sale, be it a car, house or dental practice, preparation is crucial. Time spent on refining and enhancing the practice will ensure it is sold at its highest possible value, to the right buyer.

The area which can slow down the process is the gathering together of all the necessary paperwork. Time spent ahead of the sale can help quicken this up and make it a lot less stressful towards the end. The main items that need to be made available include:

• Contracts, including staff, equipment suppliers, software suppliers etc.
• Financial accounts
• Policies and procedures, including health and safety, infection control etc.
• Building certificates
• Care Quality Commission (CQC) documents
• Price lists

Finally, in the preparation stage, do not forget your dental team! It can be a stressful time for all, timing needs to be considered carefully; they should not be told too soon in case the situation changes and staff become demotivated or consider moving on, but equally, you want to leave enough time so as to reassure them that their jobs and their patients will be looked after.

Selling to a dental corporate can often help an independent practice achieve its full potential. Their marketing budgets are larger and therefore they have the ability to reach a wider target audience, but they remain mindful of the existing practice’s ethos and patients. There is also a huge clinical and administrative support system for staff to utilise, with various learning and CPD opportunities readily available that are often subsidised. For example, Rodericks Dental is renowned for its commitment to patient care and treatment, plus, it prioritises staff development and career progression and has a dedicated, experienced team to help you through the transition.

If you wish to take the next step and are looking to sell your practice, make sure you know all your options and have all the information you need to leave your patients and staff in the safest hands.

For more information, please visit www.sellyourdentalpractice.net, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01604 602491.

The Brexit vote has had an immediate and dramatic effect on the UK’s credit rating and the value of Sterling. The UK is now seen as a less safe place to invest in and less secure to lend money to.

PFM Dental Director, Jon Drysdale, says: “The decision to leave the EU could affect your plans to purchase a dental practice and makes it even more vital to have a robust business plan. Lenders will undoubtedly pass on the increased costs of borrowing although against this it unlikely the Bank of England will impose an interest rate rise.”

The UK remains one of the world’s largest and strongest economies with good banking liquidity, relatively low unemployment and perhaps the potential for improved terms with global export markets. If you subscribe to this view, the cost of borrowing money will probably stabilise and remain at a reasonable rate.

All of this emphasises the need for buyers to examine their business plan and the cost of running a business. Are you being realistic about the interest rate you can achieve? Do your projections stress test for rise in the cost of borrowing?

For more information about PFM Dental services go to: http://pfmdental.co.uk

Harry Singh considers the repercussions of having the Conservative party in power for dentists investing in buy-to-let property.
 

So, it’s old news that in May the Conservatives came to power and set the UK a-flutter for all sorts of reasons in all sorts of areas. For those of us who are in the property game there was something of an initial sigh of relief – just in that regard – since the Labour party had said it would introduce rent controls, leading to fears that the property industry would become more heavily regulated and overtaxed.
 

But what has the reality been? Has there been the expected increase in confidence in the UK property market? Given the last few months of political shenanigans, what might we expect over the next few years?
 

Broken promises
 

The truth is that George Osbourne is now looking to restrict mortgage interest tax relief for buy-to-let property purchasers to the basic rate of income tax, even if, as many dentists do, they pay the higher tax rates of 40% or 45%. The current system, whereby buy-to-let landlords can offset their mortgage interest payments against their income, is set to be phased out from 2017.
 

In advance of the Conservative party conference in October, Damian Green, a Conservative MP, laid it out for us in The Telegraph. He wrote: ‘We need to reclaim the mantle of the party of home ownership, and to do that we not only to build more houses but ensure that they are available for people to buy. Too many new houses and flats are immediately snapped up by buy-to-let landlords, and never become available for first-time buyers. I am delighted that we have taken the first steps towards removing the tax advantages for buy-to-let, but I suspect there is much further to go (and therefore more political courage required).’
 

Well let’s face it – all of that certainly doesn’t tally with what I and others perceived we would be dealing with; namely, a political party that appeared more in favour of landlords and property investors than Labour in the run up to the election.
 

If you feel you may be affected by the proposed changes I would encourage you to visit http://saynotogeorge.co.uk/. There is a wealth of information on there explaining the potential repercussions in depth, and if you decide you are against what is being planned you may choose to sign the on-line petition. 
 

Dealing with reality
 

According to the experts, however, it’s not all gloom and doom. As reported in The Guardian, Andrew Montlake, a director at mortgage broker Coreco, said: ‘These changes will undoubtedly make some prospective landlords think twice about entering buy-to-let, but the response we have had from landlords suggest that while it will cut down on their profits, it is not enough to fundamentally change their views and start selling off all their properties.
 

‘It will just be a case of taking these changes into account when making a business decision on each property to see if the basic maths of a new purchase still works.’
 

We also know that earlier forecasts of interest rate hikes mid-2016 are unlikely to come to pass now, with conservative (with a lower case ‘c’!) predictions suggesting the first quarter of 2017 to be more likely. This is good news for anyone looking to source a mortgage over the coming months.
 

However, here’s the caveat – always be prepared for the worst. When making your buy-to-let decisions hope for the best but factor in the worst. Make sure your calculations allow for George’s tax changes to come to pass and interest rates to increase at any time, and you’ll be able to face the future with equanimity come what may.
 

Harry would like to share his professional property secrets with his dental colleagues free of charge. For further information, please visit www.dentalpropertyclub.co.uk.
 

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The content of this article is for information purposes only and should not be relied upon when making legal or financial decisions. It is recommended you seek the help of a financial and/or legal expert to assess your needs fully before making any decisions and/or making changes

Bio - Dr Harry Singh, BChD (Leeds), MFGDP (UK)

After qualifying from Leeds Dental School in 1996, Dr Harry Singh followed the traditional VT, Associate and Principal routes in dentistry, owning three dental practices along the way. Amongst these was ‘Aesthetics’, an award-winning private practice in Hertfordshire.

Like most dentists, Harry was making good money; however, it left him working long hours and missing out on family time, hobbies, holidays, going to the gym, healthy eating, etc. Even when Harry was away from the practice, he found himself thinking about patient emergencies or complaints, as well as staff issues.

Feeling alone on a professional level and unhappy with his lifestyle, Harry sought to make a change so, as well as practising dentistry, he started to invest in property and stumbled upon some professional property secrets that helped to develop his business interests. 

Over a 2-year period Harry bought 27 properties and sold 6. The profits from these deals allowed him to buy into dental practices and set up 2 squat practices.

The passive income that these properties brought in covered all of his financial commitments, enabling him to reduce his clinical dentistry hours and to spend more time with his family and on himself.

Eventually he found that he was making more money from property and practising dentistry two days a week, rather than full-time. Two years ago he retired from dentistry to concentrate on the property side of his work.

He now has a property portfolio valued at around £7 million, yielding a passive income of £8000 per month.

Understanding that many dentists feel as isolated and trapped as he did, Harry wants to ‘give something back’ to his dental colleagues via the Dental Property Club, which is designed to share with members the information, expertise and knowledge he has gathered along the way.

www.dentalpropertyclub.co.uk

Many practice sales agents will use percentage of turnover to value a practice – which can lead to an unrealistic expectation on which many vendors, particularly those approaching retirement, will base their futures.

There is a significant problem with this; a valuation through percentage of turnover is an increasingly unreliable way of valuing a dental practice. It only works on the assumption that the practice that is being sold is just like other practices in the area which, unless it happens to be a predominately NHS practice, is unlikely. Yet the majority of practice sales agents work with this method – and will charge from anywhere between 2-4% for doing so, equating to thousands of pounds in fees.
 

The fundamental issue with percentage of turnover is that it disregards many important factors that may affect the actual value of a practice – factors that you can be sure a buyer (and the buyer’s bank) will be quick to scrutinise, like the type of dentistry being delivered, the quality and state of equipment, the sustainability of the practice and the potential for expansion. In fact, by disregarding these factors, valuation through percentage of turnover begins to look a great deal like guesswork – particularly expensive guesswork – which completely ignores one essential aspect that will ultimately mean more to any buyer than any other: profitability! By failing to take a practice’s overall profitability into account, as well as the assets and the liabilities on the balance sheet, any valuation is bound to be unreliable, unrealistic and, ultimately, unachievable.
 

Why, then, do many practice sales agents continue to use this method? Firstly, it is quicker – a valuation based on turnover can be calculated relatively easily as long as the practice’s accounts are well-maintained. Secondly, the agent’s main objective is to acquire the initial commission to sell the practice, collect the fee and move on. They are not required to become invested in the priorities that the vendor might have – like ensuring the welfare of patients and staff or finding a buyer who can continue to uphold the standards and ideals that the practice has come to represent. Their remit is to find a buyer who is willing to pay and complete the transaction; they have no real reason to search with you for the ‘right’ buyer.  
 

Therefore, finding the right practice sales agent – one who will provide you with a service which is truly represented by the fees charged – is one of the most important elements of selling a dental practice. It can ultimately save a great deal of time, anxiety and cost if you find an agent who is willing to go the extra mile in the first place. Ideally, you need someone who is sensitive to the specific features of your practice and the individual needs you exhibit as a vendor. You need someone who has taken the time to understand your motivations for selling, who understands the overarching philosophy of the practice and duly considers a buyer on these terms and, most importantly, who has the expertise and experience to thoroughly analyse the practice’s accounts in order to establish a realistic and achievable sales price.

 

For more information about joining the Portman Dental team, please visit www.portmanhealthcare.co.uk or call Gary Chapman on 0207 281 9489 or 07966698130

Gary Chapman is the Head of Mergers and Acquisitions at Portman Dental. A qualified dental technician with over 30 years’ experience in the dental industry, including running his own dental laboratory and a Harley Street facial aesthetics clinic, as well as working as the Director of Acquisitions at James Hull Associates, Gary has a unique understanding of the profession. He now uses his extensive expertise to help the Portman Dental Group grow and, to date, he has identified all but two of the practices acquired by Portman Healthcare.

“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