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MediEstates - 10 steps to help you plan your dental practice exit strategy
10 steps to help you plan your dental practice exit strategy

10 steps to help you plan your dental practice exit strategy

 

Creating an exit strategy for your dental practice is indeed crucial for a smooth dental practice sale. Here are some 10 considerations and steps to help you plan your dental practice exit strategy effectively:

 

1. Timing:

 

Determine the ideal timing for your exit. Consider your personal goals, financial needs, and the state of your practice. Selling during a period of strong performance can often yield better results.

 

2. Financial Planning:

 

Work with a financial advisor or accountant to assess your financial situation and goals. Understand how the sale of your dental practice will impact your finances, including taxes and retirement planning.

 

3. Legal and Regulatory Compliance:

 

Ensure that your dental practice is in compliance with all legal and regulatory requirements. This includes having all contracts, licenses, and agreements in order.

 

4. Practice Enhancement:

 

Prior to selling, consider making improvements to your dental practice that can increase its value. This might involve updating equipment, enhancing the patient experience, or expanding services.

 

5. Confidentiality:

 

Maintain strict confidentiality throughout the process. Disclosing your intention to sell your dental practice prematurely can lead to patient and staff anxiety, potentially harming the value of your practice.

 

6. Seek Professional Advice:

 

Consult with professionals who specialise in dental practice sales. They can provide guidance on valuation, finding buyers, negotiating deals, and managing the legal aspects of the sale.

 

7. Patient Transition Plan:

 

Plan for how you will transition your patients to the new owner. Ensure that patient care remains a priority during and after the dental practice sale.

 

8. Staff Considerations:

 

Communicate with your staff about your intentions and involve them in the transition planning as necessary. Their support can be crucial during this period.

 

9. Documentation:

 

Have all necessary legal documents, contracts, and agreements prepared by legal experts. This includes the dental practice sale agreement, transition plan, and any associated contracts.

 

10. Due Diligence:

 

Perform due diligence on potential buyers. Understand their financial capabilities, experience, and motivations for purchasing your dental practice. Ensure that they are a good fit for your patient base and staff.

 

Remember that every dental practice is unique, and your exit strategy should be tailored to your specific circumstances and goals. Seeking advice from experienced professionals in dental practice sales can significantly simplify the process and help you achieve a successful transition. Want to learn more about preparing your dental practice for sale? Discover strategies to boost your profits and make a successful sale at our evening seminar on the 2nd November 2023 in Surrey. Find out more here 

 

 

Posted by: Hannah Burton on

General Buyer Terms 

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Business
    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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