Business as usual... By Simon Hughes

Although there are many concerns that surround the new NHS contract, there is no evidence of this translating into nervousness in the market at the moment.

Potential changes as seen through the pilot programmes are viewed by many practitioners as the chance to practice the kind of dentistry they want. Moving NHS dental services away from the high volume, quick turnaround UDA (Units of Dental Activity) system to a structure of care pathways and prevention is of course perceived as a good thing. And all the better if they can practice this new kind of dentistry under the same budget.

There are, of course, some other potential changes being whispered about that may affect dental businesses if they come through.

For example, there is talk of adjustments being made to the value of unit activity, which will clearly have an impact on practice income and profitability. Anything that affects the income or cost base of a business can of course affect its overall value, and if the rates of the service come down then clearly the value of the business is affected as well.

Another possible change being discussed is the time-limited GDS contract. If this change does take place, this will obviously have an effect on the practice’s valuation because the practitioner will only have the right to receive that income for a certain amount of time.

But again, until any announcements are made and changes put into place, all this is mere speculation at the moment, with little to no effect on the business side to be seen. Prices for NHS practices have been surging ahead in the last 12 to 18 months, while prices for private practice have remained relatively stable.

With the changes to the NHS contract possibly taking place soon, and the improving economy in general, demand for private dental practices is likely to improve in the coming months.

The best advice, therefore, remains:  research what you are buying thoroughly; don’t be carried away just because the market is currently hot; execute your due diligence properly; take professional advice to make sure you get the very best the market has to offer.

To discuss how Christie + Co might help you achieve your future plans please contact Simon Hughes on 020 7227 0749

BIO:

Simon Hughes joined Christie + Co in 1987 and has responsibility for the further expansion of its brokerage services into the Primary Care sectors of dentistry and GP surgery sectors. In the past three years, Christie + Co has advised, valued or sold almost £1 billion worth of businesses. Simon heads up a dedicated team of specialist advisers and agents based in regional locations throughout the UK.