A dental practice BUYING & SELLING - YOUR GUIDE TO - Christie & Co
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YOUR GUIDE TO BUYING & SELLING a dental practice
FOREWORD
CONTENTS PRACTICE
SALE PROCESS
2
FOREWORD
Julian English
3
WHY CHOOSE CHRISTIE & CO?
Simon Hughes explains
the Christie & Co model
DECIPHERED
4
INFOGRAPHIC
Christie & Co plots the sales journey Julian English, editor of Dentistry magazine, introduces a supplement
for a practice transaction about buying and selling a dental practice
5
PRACTICE VALUATION:
ART OR SCIENCE?
Christopher Vowles explains how best to
set an asking price to maximise value
6
CONVEYANCING
Alexander Hall of Meade King
explains the intricacies of the legal side
S
7
FINANCE ometimes one article does not afford enough occasion to describe and explain an
David Ward asks why risk your dream intricate subject. From time to time we publish supplements like this one to do justice
business when you can trust experts to an important and detailed topic. This supplement tackles the processes involved
in buying and selling a dental practice. When buying, leasing, selling or managing
a business, it makes sense to seek advice from a trusted professional, who can offer
8 their expertise and independent advice. We will look in detail at the offering from
PRICING AND COMPLETIONS Christie & Co, a RICS regulated firm in the dental sector. There are several specialist practice
Vital statistics for those buying or selling brokers operating in the dental sector, but only one is regulated by RICS. This supplement looks
in detail at the current state of dentistry as well as an explanation of the Christie & Co model
and why many high-profile practices are choosing them for the purchase or sale of
9 their business.
THINK YOUR WAY TO SUCCESS Within its 12 pages, this publication provides a valuable resource for anyone in the dental
Raj Rattan of Dental Protection profession looking to complete a transaction.
quotes Aristotle and looks at the We plot the sales journey by way of an infographic on page 4, before looking at transaction
mind of the buyer/seller pipelines, market trends and the history of dentistry focusing on current issues for buyers and
sellers in the 21st century.
On page 6 we talk to Alexander Hall, partner at Meade King solicitors, about the intricacies of
10 due diligence and getting a practice purchase over the line.
NHS DENTAL POLITICS To add weight to that we have some interesting facts and figures about valuations of
Julian English looks at NHS practices and a breakdown of completion times.
dental reform, the issues and likely I hope you enjoy this supplement and if you are planning to buy or sell now or in the future,
implementation timescale this guide is packed with information to help you achieve success faster and easier.
11
DR SHOWMAN SAID...
Dr Harvey Showman, who recently sold his
practice through Christie & Co,
shares his experience
2 PRIVATE DENTISTRY FEBRUARY 2018
CHRISTIE & CO
WHY CHOOSE
CHRISTIE & CO?
Written by Simon Hughes
Simon Hughes explains the difference Christie & Co, a RICS-regulated firm, can make
C
hristie & Co VALUATIONS
is the largest Christie & Co’s strength is in
national firm practice valuation.
of specialist The firm boasts a team of
agents and Chartered Surveyors across
valuers working in the 15 UK offices, offering a
dental sector. range of valuation and
Offering a full range property related services
of professional services to the dental sector. These
across the UK for practice include:
owners and investors • Accredited ‘Red Book’
alike, including help to valuations for loan
access finance, the firm security purposes
has a heritage and strong • Valuations for partnership
reputation. set up and incorporation
The firm is well known to • Dispute resolution/expert
dental professionals for the witness assignments
hundreds of dental practices • Rent reviews for landlord
it values every year for or tenant
lenders/banks. • Freehold ‘bricks and
Having valued dental mortar’ valuations
practices for many years, it was a natural Additionally, dentists interested in selling
progression for Christie & Co to launch a practice or checking what’s for sale can WHY USE CHRISTIE & CO?
a specialist dental practice brokerage register on the website or use the contact Christie & Co is able to make the most of
service (2013). details below. This is a free service and its experience, in-depth sector knowledge
The aim was to take the best of the dentists will be emailed new practices for and contacts to approach potential buyers
Christie & Co model in other business sale when they come to market. as part of a confidential sales process. The
sectors from its 80+ year history, and offer Christie & Co can advise on all aspects final price achieved is the best possible for
it to the dental sector. This has been a of the purchasing process and help the owners and the buyers are the best fit
great success, as the firm has completed dentists raise funding through their sister for the business.
many dental practice sales across the UK. company, Christie Finance. The firm is RICS regulated, the valuations
regulatory body, and Christie & Co is
OFFERING SELLING A PRACTICE trusted by the larger lenders.
When you work with us, you are assigned It’s never too early in dentistry to start
a specialist from our dental team from day your exit planning. Christie & Co has local
one, local to you, who sees the project business agents who can visit the practice
through from start to finish, simplifying at a convenient time to talk through the
complex procedures and communicating sale process. Dentists can then make an
regularly, when it’s convenient to you. informed decision when the time is right.
Selling a practice is a complex business
SIMON HUGHES so taking advice is vital. We offer an honest TO FIND OUT MORE
Simon Hughes is Managing Director Medical at view of the market with expert advice on about Christie & Co contact Simon Hughes
Christie & Co, an expert business agent dealing in the dental TELEPHONE: 020 7227 0749
sector. He joined Christie & Co in 1987, working across all how to achieve the best price for your
EMAIL: simon.hughes@christie.com
trade sectors and various regions of the UK as an agency business. Get in touch with one of our
WEBSITE: www.christie.com
specialist. He also helped set up the Medical Team in 2013. dental specialists for an initial discussion.
PRIVATE DENTISTRY FEBRUARY 2018 3
Selling your dental practice?
Let us guide you through...
Market appraisal including
2 3
freehold/leasehold
Instruct us & Produce marketing
source solicitor collateral
Leasehold: lease
Complete assigned to new buyer
Launch to market &
generate interest
Finalise CQC process and
14 transfer of NHS Contract
(if mixed practice)
Valuation
undertaken
9 Qualify buyers &
Due diligence
Exchange contracts commences arrange viewings
& CQC approved including
property
element
10 8 Commence
CQC
application
Analyse offers
for goodwill &
6 property if
included
Finalise sale
& purchase 12 6
contract Buyer’s Offer accepted
11 funding
formally
approved Agree Heads of
Terms and formally
instruct solicitors
VALUATION
DENTAL PRACTICE
VALUATION:
ART OR SCIENCE?
Written by Christopher Vowles
Setting your asking price to ensure you maximise your value
AVERAGE EBITDA Multiple by Practice Type AVERAGE EBITDA Multiple by Number of Chairs
6.8 6.6 7.2
6.3
5.6 6.0 5.7
4.5
3.8 4.1
1 to 2 3 to 5 6 or more
Mixed NHS Private
¢ Associate Led ¢ Owner Operated ¢ Associate Led ¢ Owner Operated
Y
ou may have already decided only act for you, the vendor – our fees are is achieved? Increasingly, we are setting a
to sell your dental practice transparent and based on success. closing date where interested parties are
- or you might be about to asked to submit their ‘best and final’ offer,
take that first step on the BEWARE FALSE PROFITS! supported by evidence of funding and
road to retirement or another Goodwill is valued by multiplying other conditions, subject to contract. Some
business/academic venture? Either way, sustainable profit (EBITDA) or income – the agencies invite ‘open’ best and final offers so
one of the first questions you’ll ask is, latter method used mainly for smaller, that every applicant can see what another
‘What is the state of the current market Principal-led practices. The graphs above is offering – a bit like eBay! This might work
and how much is my practice worth?’ show the range of multiples in the current well for the buyer, but for the seller, we like
Firstly the market – once something of market – these are taken from recent sales to to retain confidentiality just in case there is
a cottage industry, the dental sector is ensure that we are right up to date with the a special buyer out there willing to offer a
amongst the most dynamic of all niche market. ‘knock out’ price, as is sometimes the case.
business sectors with an estimated When EBITDA (earnings before interest, tax,
450-500 separate transactions annually. depreciation and amortisation) is calculated, CONCLUSIONS
Demand currently exceeds supply and it’s important that this is done accurately When the time comes, your Christie & Co
this can make pricing a practice quite so as not to significantly overstate and agent will talk you through comparable
challenging as, like in any free market, therefore overprice a business. Associate projects that we have worked on in your
a business is worth what somebody is pay scales should not be reduced nor should region and explain the process and how we
prepared to pay for it. extra sessions be accounted for which do work in detail, so that you are fully informed
not currently exist. The business should be before you commit.
WHOLE OF MARKET OR valued at its maximum, but it’s better to set
RESTRICTED APPROACH the asking price at a level so that, through
A number of selling agencies operate competitive bidding, the price goes up and
‘preferred’ buyer schemes – whilst the lure not down, a bit like an auction.
of “selling your practice for free” might
seem an attractive one, how does a seller OPEN OR CLOSED BIDDING? TO FIND OUT MORE
know that the best price is going to come Many dental practices (particularly London about Christie & Co contact Christopher Vowles
from this small group of buyers? And and other major conurbations) attract TELEPHONE: 0121 452 3703
EMAIL: christopher.vowles@christie.com
if the buyer pays the fee, where do the multiple offers. So how best to be fair to
WEBSITE: www.christie.com
agent’s loyalties lie? At Christie & Co, we buyers but also ensure that the best price
5 PRIVATE DENTISTRY FEBRUARY 2018
LEGAL
LEGAL ESSENTIALS
Interview with Alexander Hall
We interviewed solicitor Alexander Hall to discover the intricacies of a practice sale and why it can take
longer than expected, and what a buyer or seller can do to speed up the process
Let’s get right to it. The first question I’m often He explained that every new buyer has to be transaction does not get over the finish line. So
asked is, “How much is this going to cost?” registered with the CQC for the new business/ we are all motivated to make this happen.
These days most solicitors quote a fixed fee. practice/property. There is a large application Solicitors have rules and have to act in the
In order to do this, the solicitor has to know form and the process of assessment from best interests of their clients. Ethically we
roughly how much work will be involved in the CQC takes eight to 12 weeks. If the CQC cannot cut corners to save time and this can
completing the sale. To this end, the solicitor process goes smoothly, it takes around four cause tension and be frustrating for the vendor
should make a guestimation based on the months. and buyer.
answers to the questions below: However, if buying a limited company and
• Does it have an NHS contract? the company is the registered provider and it is LANDLORDS
• What type of NHS contract? done cleanly, it can be quicker. Sometimes third-party landlords scupper the
• Is it a share purchase (buying a company)? Other factors that can slow the process are deal. Sometimes a lease is not long enough,
• Is it an asset purchase? a poor bureaucracy – like the NHS contract in for example, less than the term of the loan.
• Buying the capital equipment? the previous person’s name, or the lease from The bank always wants a lease to match the
• Is the property involved? the landlord in the wrong name. duration of the loan.
‘I pioneered fixed fees 10 years ago’, said Speaking of landlords, they can often delay
Alexander Hall, partner at Meade King the process spectacularly. They have little NHS
specialist dental solicitors, adding: ‘If a solicitor incentive to help. They are getting regular rent Since 2006, when the ‘new’ GDS contract
calls himself a specialist, doing the same thing and want it to stay that way. They often delay came out, which is non-transferrable and
day in day out, they should be able to quote a lease transfers and can demand references non-assignable, dentists are allowed to vary
fixed fee based on experience.’ Dentists like this before agreeing to transfer leases. the contract so it is held in one or more names
because they want to budget. Fixed or a partnership. And this is the way
fees tend to be between £5,000 buyers and sellers have transferred
and £15,000 depending on the SELLING A PRACTICE IS NOT LIKE NHS contracts. This has been subject
circumstances and complexity.’ WINNING THE LOTTERY. YOU to much challenge and scrutiny.
It does mean that NHS England
OTHER COSTS? MIGHT BE PAID £1MILLION, BUT does not get a chance to choose its
If you are selling and there is a third-
party lease, the landlord’s legal fees
THERE IS A LOAD MORE WORK contractors. They have no choice
but to accept the buyer foisted upon
have to be met by the seller. Sellers them. So this process has to be done
must pay £500-£600 for property searches and GOODWILL AND DUE DILIGENCE properly. It should take no longer than 28 days.
they take several weeks to complete. If buying If someone is spending hundreds of thousands Incorporated companies owning a practice
a company, the buyer has to pay 0.5% stamp of pounds on a practice, for which the have had written into their contracts that they
duty on the purchase price of the shares. So a main asset is goodwill, which is intangible, must get permission from NHS England to
£200,000 company attracts a tax of £1,000. In it can be no surprise that there has to be a change the contract. And getting permission
a £1million transaction the tax is £5,000. Other comprehensive investigation into what is can take many weeks.
costs include the bank’s arrangement fees, being bought and lent on. These can comprise
and there is, of course, the fee that the solicitor pages and pages of questions about the SUMMARY
charges for his/her work. business, the staff, the relationship with the There are plenty of hurdles and issues to
NHS and so on. overcome in order to reach completion, after
TIMINGS The bank also insists on this comprehensive all dentistry is a highly regulated (by the GDC,
Why does it take so long to complete a investigation – also known as due diligence. So CQC, NHS) business.
transaction? what has this got to do with timing? However, the market for buying and selling
‘You can only go as fast as the slowest practices is vibrant and busy, and we are all
process. And the slowest process in recent END GAME constantly seeking ways of safely reaching
years has been obtaining Care Quality Selling a practice is not like winning the lottery. completion as quickly as possible.
Commission (CQC) registration’, said Alexander. You might be paid £1million if you get to the
end, but there is a load more work to be done TO CONTACT ALEXANDER HALL
than just buying a ticket, but the certainty is TELEPHONE: 0117 923 4050
ALEXANDER HALL MOBILE: 07960 177337
is a partner at Meade King LLP solicitors in Bristol. Alexander much higher.
EMAIL: ajh@meadeking.co.uk
has a team of 10 people permanently employed to work on Obviously there is a huge amount of pressure WEBSITE: www.meadeking.co.uk
the purchase and sale of dental practices. on timings but frankly, nobody gets paid if the
PRIVATE DENTISTRY FEBRUARY 2018 6FINANCE
GIVE YOURSELF THE
BEST CHANCE
Written by David Ward
David Ward of Christie Finance asks readers to trust the experts when it comes to financing a purchase
W
e all know that banks are business, every lender has good, average HERE IS A QUICK CHECKLIST:
‘open for business’. They have and poor managers. If you happen to be • Have they been around long enough to
been telling us for years. But put in front of a poor manager who hasn’t know the lending market?
how true is it? If you have got a good track record with credit, there • Are they specialists in financing dentists?
years of experience, plenty is a higher risk that the proposal will be Or are they also arranging finance for
of cash to invest, are buying a good NHS declined. You only get one chance with each printing presses and industrial units?
practice which is producing a solid lender. Even if you manage to get the finance • Do they understand the process involved
bottomline profit, then yes, most lenders will agreed, how do you know that that is the in buying a practice – to help iron out any
be very keen to lend...on their terms. best deal that is available – either with that issues during the purchase?
However, what if some of those key points lender or anywhere on the market? • Are they charging a reasonable fee? If
don’t quite match up? You don’t not, then they will be relying on
have as much cash as their policy
dictates; it has a strong element
WE KNOW WHICH LENDERS SUIT the lender to pay them – and so
will avoid the lenders who don’t
of private trade; it’s not overly WHICH BUSINESSES pay commission, and target those
profitable due to overstaffing or who pay them the most. Paying the
underperformance. Unfortunately, with commercial mortgages, broker a reasonable fee should make them
This is when a lot of the traditional lenders there are no price comparison websites. Each truly independent.
will hide behind their ‘policy’ and politely business is so unique that lenders cannot Christie Finance has been around for 40
decline. So what do you do? Some people apply a ‘one-size-fits-all’ policy. So lenders years, working alongside specialist dental
will go door-to-door along the high street, have their own internal guidelines which will agents and valuers at Christie & Co.
hoping to find a lender who will not only vary depending on various elements, such as We have a specialist finance team who
agree on the level of finance that you sector appetite, location, loan-to-value and understand the dental market in the UK but
require, but also give you a good rate at how hard the manager is willing to push on are also regionally based, so have a very
the same time. This ‘trial and error’ method your behalf. good understanding of the local area.
of arranging your finance is not just time- Fortunately, however, there is another Why risk your dream business? Trust the
consuming - it can also put at risk your whole option. Someone who already knows experts.
business purchase. the lending market; who the motivated
This may sound dramatic but just like any managers are; who also knows what they are
able to offer and gives you the best chance of
DAVID WARD getting funding for your practice.
is a qualified banker with many years’ experience arranging So instead of running around hoping to TO FIND OUT MORE
commercial finance, David specialises in sourcing funding for find the right bank manager in the right about Christie Finance contact David Ward
dental practices and pharmacies. Advising and supporting bank, a specialist broker will do all of that for TELEPHONE: 0121 452 3717
clients who wish to acquire a single asset, expand their EMAIL: david.ward@christiefinance.com
portfolio or refinance, he specialises in delivering funding for you.
WEBSITE: www.christiefinance.com
both NHS and private dental businesses across the UK. ‘But how do I know which broker to use?’
PRIVATE DENTISTRY FEBRUARY 2018 7ANALYSIS
PRICING AND
COMPLETIONS
W
hat is the likely multiple for a We have also separated smaller practices HOW LONG WILL IT TAKE TO SELL MY
practice like mine? with a turnover of less than £600,000 (which PRACTICE?
There is clear comparable are likely to be owner /Principal run) from The majority of dental practices complete
evidence that groups sell for a larger, Associate-led practices to reflect the within six months. However, this is
premium multiple compared difference in operating margins and multiples dependent on a number of factors as we
to single assets. paid. have highlighted throughout this guide. The
The heat maps below set out our analysis of Smaller practices, particularly those with an chart illustrates transaction times according
dental practice sales over the last six months NHS contract (England and Wales) still tend to type expressed as a percentage of total
is the likely multiple for a
and new deals agreed in the same period
to give the most up to date reading on the
transaction
to be priced
turnover
times accordingon
by purchasers
whereas buyers of
toatype expressed
multiple
larger
of
practices
as a
transactions.
percentage of total transactions.
ce like mine?
What
market. Practices have been grouped with
is the likely multiple for a
reference to geography, type and size.
are generally more sophisticated and adopt a
transaction times according to type expressed as a
multiple of EBITDA.
percentage of total transactions.
practice likeMultiples
mine?
Average Associate Led
Practice EBITDA
Average Associate Led Average Owner Operated
Practice EBITDA Multiples Practice EBITDA Multiples
UK Average
Average Owner Operated
Up to
Practice 2
EBITDA Multiples 6%
months
UK Average UK Average
5.9
2 to 4 19%
months
4.1 UK Average
5.9
4 to 6 32%
months
4.1
6.8 6 to 8 16%
6.7 months
6.8 6.0
8 to 10 7%
6.7 5.2 months
5.8 6.0
5.2 10 to 12 12%
8.3 months
6.8
5.8 4.7
12 to 14 6%
8.3 3.6 months
7.5 5.4
7.1 6.8
6.1 4.7
14 to 16 1%
3.6 months
7.5 5.4
7.1 6.1 6.1
6.1
16 to 18 1%
months
6.1 6.1
¢ NHS ¢ Mixed ¢ Private
lear comparable evidence that groups sell for a premium muiltiple compared to
ets
There is clear comparable evidence that groups sell for a premium muiltiple compared to
ps and charts set out our analysis of dental practice sales over the last six months and new deals agreed in the
single
to give assets
PRIVATE
the most
DENTISTRY FEBRUARY 2018 8
up to date reading on the market. Practices have been grouped with reference to geography,
.PSYCHOLOGY
THINK YOUR WAY TO
SUCCESS Written by Raj Rattan
Raj Rattan MBE looks at the emotions and psychology involved in owning a dental practice
B
uying or starting a practice for the business for sampling because they do not neuroplasticity show that the human brain
first time is a significant career step exist anymore. The failures are excluded has enormous growth potential. We don’t
for many dentists. The opportunity from the sample. A lot of consultancy work know the limits, but we do know that science
to lead a team, develop the and self-help books are promoted on this has proven that brains can and do change
business, and create a climate in falsehood. and grow, that there are numerous ways we
which excellence can flourish is challenging. Let’s go back to the pursuit of happiness. can rewire our brains, and that adopting the
Practice owners today need to be resilient Of all the emotions, happiness is the one habits that improve our mindset have proven,
to cope with all the stresses associated with scientists least understand but most believe is long-lasting effects.’
running a business. If you choose this path,
then you must also learn to savour your THE SCIENCE OF SUCCESS HAS GIVEN US A
successes. Above all, it must be an enjoyable
experience. BETTER UNDERSTANDING ABOUT HOW WE
Conventional thinking suggests that hard THINK, OUR MOTIVATION AND OUR
work leads to success and success leads
to happiness. Success means different HARD-WIRED BRAIN BIASES
things to different people and can be
measured in many ways. Business writers a precursor to success. Research suggests that There has been a mood swing in the
and consultants frequently review business we need to reverse this belief – people who profession over the past decade and it hasn’t
practices to identify what successful have a positive mindset perform better when been towards the positive end of the scale.
businesses have in common and offer their they are faced with challenges. The trend cannot continue as it impacts work
findings as a template for success. It is no Martin Seligman is a professor of performance. Studies suggest that 40% of
different in dentistry and the approach psychology and his PERMA model breaks it our perception of happiness is genetically
is intuitive and appears logical. Some down into its component parts: determined and the remaining is the result of
have questioned its validity because the P – Positive emotion – the enjoyment that the environment and our unique experiences.
comes from intellectual stimulation This proportion can be influenced and is a
STUDIES SUGGEST E – Engagement – total immersion in tasks determinant and driver of success in the long
THAT 40% OF OUR and activities
R – Relationships – social and professional
term.
It is time to rethink the formula and
PERCEPTION networks introduce some intellectual rigour as to what
M – Meaning – having a sense of purpose it really takes to succeed in the business of
OF HAPPINESS and value dentistry. It is so much more than financial
IS GENETICALLY A – Accomplishments – realistic goals that are
achievable.
literacy.
The science of success has given us a better
DETERMINED It is all too easy to overlook these challenges understanding about how we think, our
when running a clinical business. The motivation and our hard-wired brain biases.
sampling method focuses only on the business imperative to make a profit, work The research is a modern interpretation
successful enterprises. This limitation has within normalised expense ratios, repay of ancient wisdom. Aristotle wrote that,
been described by Professor Jerker Denrell loans, deliver quality care in a challenging ‘Pleasure in the job puts perfection in the
as the ‘undersampling of failure’ in a paper business climate, create an urgency and work’ over two thousand years ago. Today, we
published in 2003. It reflects what is known primacy which may overshadow the more, just need to rediscover the pleasure. It is the
as survivorship bias – one of many cognitive shall we say, philosophical aspects of our first step to lasting success and profit is the
biases or thinking errors human beings make. business. We should not overlook this; it is realisation of that attribute.
It refers to the exclusion of unsuccessful needed for sustainability and resilience and
provides an ethical anchor.
RAJ RATTAN Aristotle was a pioneer of the study of
MBE, BDS, MFGDP, FFGDP, DIP.MDE, FICD, human happiness and wrote that, ‘It is for the
has over 30 years’ experience in dental practice and has been sake of happiness that we all do everything
associated with Dental Protection for over 20 years, first as a else we do’. Not everybody would agree TO FIND OUT MORE
dento-legal adviser and more recently as dental director. He is with the ‘everything’ element, but the view is about Dental Protection contact Raj Rattan
also strategic associate dean at the London Deanery. In 2008, TELEPHONE: 0800 561 9000
Raj was appointed MBE in the Queen’s New Year’s Honours widely accepted.
EMAIL: enquiries@dentalprotection.org
List for services to dentistry and he is former policy adviser to In his book, The Happiness Advantage,
WEBSITE: www.dentalprotection.org
the Department of Health. Shawn Achor, writes: ‘Advances in the field of
9 PRIVATE DENTISTRY FEBRUARY 2018REFORM
NHS DENTAL REFORM
– WHERE ARE WE?
Written by Julian English
Julian English looks at the history of dentistry up to the current NHS dental reform, how it’s shaping up
and the likely timeframes for implementation
HISTORY OF DENTISTRY
Dentistry has come a long way in 150 years.
In the 1870s, the first white filling material
was invented, the first act of parliament
was introduced, the first dental register was
completed and the British Dental Association
was founded. In 1900 GV Black established
the principles of cavity preparation, the first
university dental degree was awarded and
in 1956 the General Dental Council was
established.
National Health Service dentistry for the
general public started in 1948, but it wasn’t
until 1990 that the first dental contract was
introduced. And that’s when the fun started.
Private dentistry quickly followed the
announcement of a cut in fees in 1992. Since
1992 there has been a steady increase in private
dentistry and a decrease in NHS provision. 2006
witnessed a new general dental services NHS
contract and the introduction of units of dental
activity (UDAs) as a measure of work completed.
Coupled with the relaxing of the cap on the
number of groups that could own practices, a
large number of dentists converted to private
practice. 80 prototype practices, who are testing two is growing as it is seen to be a great area to
In 2011 the spend on NHS dentistry matched ‘blends’ of the treatment and patient payment invest. Dentists see it that way too. But the cost
the spend on private treatment and corporate systems and capitation fees per patient of running a practice is increasing, as are the
dentistry has grown steadily to the present day. registered. A quarter of the prototype practices challenges. This has led to considerable demand
have dropped out saying they cannot make for dental practices from buyers and sellers.
CURRENT ISSUES the system work. The majority of those still
In the last few years the guaranteed income operating are struggling, suggesting the system REFERENCES
from having an NHS contract has drawn many requires further development and evaluation. www.bda.org/museum/the-story-of-dentistry/
first time buyers and owners to this safe option. The Department of Health (NHS England) has timeline
But the private sector is also increasingly speculated 2018–2019 for the launch date of Contract reform update. Dentistry magazine
attractive to the corporates, although there is this new contract, but they are no closer to January 2017.
more risk attached. resolving issues. So, we do not expect a new
The value of goodwill in dental practice contract anytime soon.
businesses has rocketed in the last 10 years. This uncertainty continues to drive the private
In 2018, the private sector continues to be sector, as entrepreneurial dentists look to start
attractive because of uncertainty over the or expand their business.
promised new NHS dentistry contract. Indeed, TO FIND OUT MORE
the new contract was expected in 2014, and SUMMARY about Christie & Co contact Simon Hughes
TELEPHONE: 020 7227 0749
with it tougher working conditions for less Dentistry has come a long way in 150 years.
EMAIL: simon.hughes@christie.com
money. But a new contract has not arrived. A But in recent times major developments have WEBSITE: www.christie.com
new way of working is being trialled through affected UK dentistry. Corporate dentistry
10 PRIVATE DENTISTRY FEBRUARY 2018CONTACT US
US
Simon Hughes - London & Home Counties Bethany Hall MRICS - South Steve Darbon - London & Home Counties
Managing Director Medical Senior Valuer Associate Director
T: +44 20 7227 0749 T: +44 1962 833 806 T: +44 20 7227 0705
M: +44 7768 646 983 M: +44 7703 715 540 M: +44 7702 809 564
E: Simon.Hughes@christie.com E: Bethany.Hall@christie.com E: Steve.Darbon@christie.com
Paul Graham - Scotland & North East England Hayley Taylor MRICS - Midlands and Anglia Rachel Seward MRICS - South West
Director Valuer Associate Director
T: +44 131 524 3416 T: +44 121 227 4269 T: +44 117 946 8511
M: +44 7739 876 621 M: +44 7590 488 480 M: +44 7720 948 972
E: Paul.Graham@christie.com E: Hayley.Taylor@christie.com E: Rachel.Seward@christie.com
Carl Steer - Midlands & Anglia Chris Vowles FRICS - Midlands & Anglia Joe Swiers MRICS - North
Director Head of Valuation - Medical Senior Valuer
T: +44 121 452 3722 T: +44 121 452 3703 T: +44 113 389 2725
M: +44 7917 475 229 M: +44 7791 183 966 M: +44 7791 979 345
E: Carl.Steer@christie.com E: Christopher.Vowles@christie.com E: Joe.Swiers@christie.com
Oliver Snowden - South & South West Jonathan Watson - North Kasia Glaz MRICS - South West
Associate Director Associate Director Valuer
T: +44 117 946 8528 T: +44 161 833 6935 T: +44 117 946 8507
M: +44 7711 767 094 M: +44 7713 061 582 M: +44 7590 494 748
E: Oliver.Snowden@christie.com E: Jonathan.Watson@christie.com E: Kasia.Glaz@christie.com
Jonathan Barnett MRICS - South West David Ward - Christie Finance
Director Senior Director - Medical Finance
T: +44 117 946 8522 T: +44 121 452 3717
M: +44 7764 241 282 M: +44 7815 803 262
E: Jonathan.Barnett@christie.com E: David.Ward@christiefinance.com
We cannot praise Christie & Co enough in
Thank you again for representing the way they held our hand and guided
us in the transaction, facilitating us in the sale of our practice. They quickly
the sale of our practices, and your found us a series of potential purchasers
professional help and advice that with different types of deals and offers to
helped us achieve a good deal with choose from, presenting amongst them
which we’re very pleased. a deal from an independent with ‘an ideal’
post-sale scenario.
Specialist practice owner Principals,
Dr Mahmoud Pourghadiri Compton Acres Dental Practice
Call for a free market appraisal
020 7227 0700
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