When you sell a dental practice it’s advisable to take plenty of time in planning your exit from the business, and also to take account of any specific challenges experienced in your sector.
Consider why you’re selling your business, as this is an important element for any potential buyer. Also think about your main goals for the sale – a speedy sale, for example, or a specific price - and also whether you’ll seek professional assistance to smooth what can be a complex process.
Our experts at Selling My Business can help you plan and execute a sale of your dental practice, whilst ensuring your aims are met as far as possible. We have extensive experience of helping dental practice business owners sell their business and achieve their goals.
During the planning stage of a business sale it’s important to consider the specific challenges you face on a day-to-day basis, and the wider issues experienced in your sector. So what might these include?
The British Dental Association (BDA) reports “the government’s share of spending has fallen by over £500 million since 2010.”¹ This typically makes balancing practice cash flow an ongoing issue as business owners struggle to meet the demands and challenges of running a successful dental practice.
The dental profession is heavily regulated, with the Care Quality Commission (CQC), NHS, and the General Dental Council, all involved in various regulatory practices including investigating litigation proceedings initiated by patients, and workplace health and safety in dental practices. This widespread regulation can create excessive pressure and stress for dental professionals, leading to shortages of key staff.
According to 2019 research by the British Dental Association, “60% of NHS dentists in England are planning on moving on.”² This could exacerbate an existing shortage of qualified dentists working in NHS practices, and makes recruitment and retention of key staff very difficult.
So if your dentist surgery is for sale, how does the process progress and what are the key stages?
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Initial information – the sales memorandum
The sales memorandum, or information memorandum, provides a basic outline of the business, including information on sales, the reasons why you’re selling your dentist practice, and the selling price.
Narrowing down the shortlist of interested parties
Identifying one or two likely buyers heralds the start of more detailed negotiations to establish a broad framework for sale. It’s worth noting that any information provided in the sales memorandum or during this negotiation stage will be scrutinised by the prospective purchaser during a due diligence stage, which takes place next.
Heads of Term and Sales Agreements
The Heads of Term agreement lays out the results of negotiations, and if all is well, this is followed by the final Sales Agreement that includes pre-agreed warranties and indemnities.
Business sales brokers can significantly ease the pressure of a business sale on its owner(s), and facilitate a smooth transaction. Sector specific experience enables us to tailor our advice and guidance to your individual practice, and ensure you stand the best chance of attaining your goals.
Please contact one of our expert team at Selling My Business to arrange a free consultation in complete confidence, and find out more about how we can help. We offer free valuations out of office hours if required, and operate an extensive database of potential buyers.
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