MediEstates - Strength in numbers – the benefits of investing in multiple practices
Strength in numbers – the benefits of investing in multiple practices

Strength in numbers – the benefits of investing in multiple practices


Scott Gidman explains why it is a great time for practice owners to expand their business portfolios


At MediEstates we are seeing a flourishing market for a certain group of buyers with the will and means to increase their number of practices. Perhaps surprisingly, the fastest area of growth is not in corporate but in the mid-market, proving the time is ripe for entrepreneurial enterprise despite the difficulties many in the industry have faced this year.


Who are mid-market buyers?

This broad definition includes individuals and small groups with at least one practice. Some are non-dentists or retired clinicians with a specific interest in expanding their practice portfolios. Individuals or groups with between two and ten practices will often situate themselves in central locations with a higher population density. The advantages of this are clear, not only for greater patient numbers but also for more recruitment options.


The importance of location

Understanding location can significantly enhance growth potential. Location will almost certainly affect the type of treatments a practice can offer and the level of growth which can be realistically achieved. MediEstates compile comprehensive reports on locations and pricing that provide valuable insights into population density and earnings within specific areas. We also provide information on property values and calculate rental yields for practice owners aiming to rent their business properties. When we build our client’s tailored business plan, we include the rental figure for more accurate forecasts, giving the buyer greater financial visibility before applying for loans or finance.


Why invest in more than one practice?

Owning multiple practices can boost profits by reducing day-to-day running costs through bulk buying and staff sharing. And if the thought of finding that initial lump sum seems off-putting, remember that interest rates are low, so it is a good time to take out a loan. Despite changes to the lending landscape due to the pandemic, in which a larger deposit on a property may be required, the healthcare sector always presents an attractive lending prospect to banks. These ventures present low-risk business models and banks are therefore more willing to approve loans. Once the practice is established and running costs drop, the return-on-investment increases and debts are repaid at a faster rate. With that return-on-investment retained following the repayment of debts, plus the additional benefit of available assets, expansion appears a very attractive prospect to many at this time.


Financial transparency with MediEstates

Going ahead with expansion is an exciting undertaking, but preparation is everything. MediEstates holds an extensive archive which enables us to advise on all aspects of the dental marketplace, including what people are paying for practices and what banks are prepared to lend at any given time. As part of our service, we provide detailed practice information on staff costs, both clinical and non-clinical, which can affect tie-in periods when considering post-sale agreements. It is the buyer’s responsibility to honour existing staff contracts upon sale, so MediEstates will forecast the total wage bill, including National Insurance contributions and workplace pensions, to give the buyer the financial transparency to make informed decisions.


One support network – multiple solutions

Working together as one company, MediEstates, Henry Schein and Software of Excellence can provide a complete, bespoke service to buyers. If further funding is required, Henry Schein Financial Services can offer a range of finance solutions for practices and equipment, in addition to life insurance and income protection for self-employed clinicians. Henry Schein can also supply a huge range of dental equipment and consumables to keep practices well-stocked and running smoothly.


Software of Excellence provides cloud-based dental software that allows practice owners to track data remotely across all sites. So, for example, they can monitor the number of UDAs completed or the private revenue being generated at any time. Staying connected remotely is a business lifeline for millions of people right now. With the current working model set to continue and increasing demand for virtual appointments, SOE’s cutting-edge dental software is a sound long-term investment option.


MediEstates can also use SOE software for valuation purposes by requesting practice diagnostics that provide real-time information on patient numbers and failure-to-attend rates. No other broker has the kind of network to offer such a comprehensive service. Our analysis is completely free of charge up to the point of sale and customers are under no obligation to buy or sell. It enables me and other Practice Valuation Managers at MediEstates to build great relationships with long-term clients. It is a pleasure to watch their businesses flourish and to play a part in that growth.


Scott Gidman is a Practice Valuation Manager who has been with MediEstates for seven years. In that time Scott has valued over 1,100 different dental practices across the UK and Republic of Ireland, so he has extensive experience in all aspects of the dental valuation process.


If you are interested in finding out more, please contact the MediEstates team on 01332 321692, contact@mediestates.co.uk or visit www.mediestates.co.uk


Posted by: Scott Gidman 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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