MediEstates - Financing your dental purchase
Financing your dental purchase

Making the decision to buy a dental practice is, of course, a major financial commitment, but it is an incredibly exciting and rewarding opportunity.

At times, the process may feel incredibly complicated, so it is highly recommended to seek out professional advice from the outset.

Working with specialist financial brokers with a wealth of experience of the dental sector will help guide you through the key elements of buying a practice. They understand the complexities of practice purchases and appreciate that initiating the first steps into the world of practice ownership may be a daunting prospect. There is, therefore, incredible value in working with a specialist team.

Creating a comprehensive business plan is the first essential part of practice acquisition. Before considering any loan, a bank will need to see details of the practice, including the business aims and objectives, historical accounts for the practice, usually for the past three years, proposed working arrangements, staffing levels, and opening hours. You should also include your CV to prove a stable working history.

A specialist broker offering independent advice can search for lenders on your behalf, saving time and stress

The bank needs to be assured about how the practice is going to be run in the future, how the buyer is managing their money and that the practice will generate enough income to cover the loan repayments.

Every bank has different criteria for lending and all lenders will usually require a cash deposit from the purchaser. On average, banks are looking for a 10% to 25% deposit. The banks do look at each case on its own merits and 100% lending may even be available for existing practice owners.

First-time buyers not only normally need a deposit and ensure they meet the criteria of the banks, they also need to prove they have a minimum of two years’ experience of managing or being an associate in a UK practice.

Interest rates
Over recent years, interest rates have continued to remain low. Several major banks have specialist healthcare lending teams, meaning the decision to agree a loan will be taken by people experienced in the dental sector who understand how a practice works. The scope for lending on a practice purchase has many considerations and variables. To secure the best deals available, it is beneficial to use a specialist dental advisor, rather than approaching a bank directly. A specialist broker offering independent advice can search for lenders on your behalf, saving time and stress. They deal directly with the heads of healthcare to negotiate the most preferential rates, which can be fixed or variable, giving you access to a full range of finance deals.

A specialist financial broker can also assist with refinance for those who already own a practice. They can help to find a better interest rate or extend the loan once a fixed term comes to an end. In some cases,

The bank’s final loan agreement is subject to the valuation of the practice by an independent valuer, as banks require the valuation to be in line with the practice purchase price. Once the valuation is completed and finance is agreed, the bank will send a full offer letter – usually valid for three months – so you can complete the transaction.

No two dental practices are the same, so when it comes to the complexities of buying a first practice, it makes sense to enlist the help of a team of dedicated dental practice brokers.

The team will then negotiate the terms that best suit your specific needs and budget. With the support of a financial consultant who understands the current and ever evolving market, you can ensure the most suitable and competitive terms for your prospective practice purchase.

Posted by: Lucy Keeble 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:

    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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