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MediEstates - Considering Selling Your Dental Practice? Establishing an Effective Exit Plan is Crucial!
Considering Selling Your Dental Practice? Establishing an Effective Exit Plan is Crucial!

Considering Selling Your Dental Practice? Establishing an Effective Exit Plan is Crucial!

 

The decision of when and how to exit your dental practice is a significant one that nearly every practice owner will experience during their career. Whether you're contemplating retirement, seeking a more challenging opportunity, or desiring a break from the dental realm to pursue a different path, careful planning of your exit strategy is imperative for a seamless transition.

 

Many dentists are grappling with the growing demands for high-quality, cost-effective care, coupled with the administrative and financial challenges of practice ownership. Consequently, there is a notable rise in practice owners exploring their options. The enduring impact of the cost of living and dental recruitment crisis further intensify the strain on practices, making the prospect of selling and reducing responsibilities even more attractive.

 

The decision to sell your dental practice is often an emotionally challenging one. Building a successful practice entails years of hard work and dedication, making it difficult to part ways with something into which you've invested considerable time and effort. Nevertheless, if you've determined that selling is the right move for you, there are key considerations when formulating an exit strategy.

 

Valuing Your Practice Accurately

 

Having an accurate valuation is essential for a successful sale. Factors such as location, patient base, profitability, equipment and technology, growth projections, and local competition contribute to the complexity of valuations. Henry Schein MediEstates offers a comprehensive valuation service, considering various factors, financial forecasts, and profitability optimisation advice.

 

 

Choosing the Optimal Deal Structure

 

The structure of the sale can vary based on whether you prefer a lump sum immediately or are open to extended payments with appropriate retentions and guarantees in a post-sale agreement. Options include continued involvement post-sale, serving as a mentor or through contractual arrangements as an associate. Alternatively, you might favour a straightforward structure for a clean break from the practice.

 

Identifying the Right Buyer

 

The type of buyer your business attracts depends on its size and annual turnover. Smaller practices may attract individual buyers seeking an affordable entry, while larger practices may draw the interest of corporate entities with plans for expansion. Sellers must be aware of the implications associated with each buyer type, sale structure, and post-sale agreement.

 

Plan Ahead for a Smooth Transition

 

Depending on the buyer type, ownership transfer can take up to 12 months due to legal complexities. Commencing exit strategy planning before you're ready to sell can help eliminate unwanted delays.

In conclusion, selling your dental practice is a major decision, but with a well-thought-out strategy, it can pave the way for future success. By developing an exit plan, finding the right buyer, accurately valuing your practice, and understanding legal obligations, you can ensure a smooth transition. The team at Henry Schein MediEstates is ready to discuss your needs and provide expertise to help you decide on the best options for your future.

 

Why not get in touch today to get a valuation for your dental practice? Contact our team today.

 

 

Posted by: Manjit Jutla 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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