MediEstates - Practice Sales Intelligence - July
Practice Sales Intelligence - July

Practice location
- this well-established practice has been operating for over 60 years and was acquired by the current principal 11 years ago. The practice is located in a dense residential area in the midlands adjacent to a GP practice and close to a handful of local amenities. There is significant residential development planned within the area, providing growth potential for an incoming buyer.

Type of practice - this is a four-surgery, mixed practice, which includes a converted-residential freehold (valued at £250,000).

Buyer appetite - the practice generated significant interest with over 2,200 website views, and 233 buyers requesting full sales particulars.

Reason for sale / incoming purchaser - the incoming buyer was looking to operate the practice under an owner-occupier model, whilst the outgoing principal was looking to reduce their responsibilities and maintain a clinical presence at the practice; with four available surgeries both parties could work in the practice simultaneously. The transaction took over a year to complete, however this was due to various complexities with the sale of the freehold.

Financials - the practice holds a small NHS contract of £67,889 from 2,977 UDAs; a UDA rate of £22.80. Fee per item turnover is significant at £580,016, with an additional £40,628 generated from capitation. The current principal works part time and completes a modest amount of clinical work. There are six part-time associates who contribute 80% of the turnover, alongside a hygienist and therapist who contribute 6% of the turnover. The staffing levels at the practice are as expected with one practice manager, seven nurses and four receptionists, all part time.

Price achieved - £950,000 inclusive of freehold, goodwill, equipment, fixtures and fittings, which was in line with the original asking price.
Practice Location
- established since the 1970s, this practice was acquired by the current principal in 1981. Located within a busy town centre area in Wales, it benefits from free parking immediately outside, as well as good public transport links. There are other shops and amenities close by that help drive footfall to the area.

Type of practice – this is a two-surgery, mainly NHS practice, which includes a converted residential freehold (valued at £140,000).

Buyer appetite – details of the practice were distributed to our priority buying tier with a select number of buyers receiving full sales information and requesting viewings.

Reason for sale / incoming purchaser – the current principal was looking to retire, however they were flexible with regards staying on at the practice for a period of time if required. The successful buyers are a husband and wife dentist team who were looking to expand their small group of practices. Once an offer had been accepted the transaction took just five months to complete.

Financials – the NHS contract of £391,535 was generated from a provision of 16,364 UDAs, representing a UDA rate of £23.92, with a small amount of private fee per item in addition. Total annual turnover was £401,535 with the income completed by the principal and an associate, supported by four part-time nurse/receptionists.

Price achieved – £655,000 inclusive of freehold, goodwill, equipment, fixtures and fittings.
Practice Location
- this practice was set up from squat by the current principal in 1991 and occupies first-floor purposebuilt premises on a busy high street in Yorkshire. The retail properties on the high street attract passing trade to the area, with plenty of parking and good transport links.

Type of practice - this is a single-surgery, fully-private practice sold on a leasehold basis, and has potential room for future expansion.

Buyer appetite - nearly 400 potential buyers viewed the practice via our website with 57 buyers requesting full sales information.

Reason for sale / incoming purchaser - the practice came to market due to the current principal’s plans to retire with a gradual reduction in responsibility preferred over a set period of time. This arrangement suited the buyer, who was purchasing the practice as an investment opportunity and would ensure continuity of income going forward. The completion of the transaction took five months once the practice was in SSTC.

Financials - the practice generates a fee per item income of £345,221 and a small capitation income of £21,177. The current principal works full time and generates all of the income, alongside a practice manager, two nurses and two receptionists, all working part time.

Price achieved - £395,830 inclusive of goodwill, equipment, fixtures and fittings.
Posted by: Anne Barker 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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