MediEstates - The only way is up in Scotland!
The only way is up in Scotland!

The only way is up!

As the value of Scottish dental practices continues to rise, Ian Simms explains why now is a great time to buy or sell a dental practice in Scotland

Goodwill and practice valuations by Mediestates for Scottish dental practices have risen by an incredible 200% since 2011, with NHS and mixed practices attracting a significant premium when compared to private practices.

Owning an NHS or mixed dental practice in Scotland has become an increasingly attractive proposition for a number of reasons.

Along with generous NHS Scotland practice allowances and rent and rate reimbursements, running costs remain substantially lower than in comparable practices in England and Wales. Plus, dental examinations and prescriptions remain free in Scotland, which makes an NHS practice appealing to patients and owners alike. When considering these benefits, it’s no surprise that according to the latest figures the number of Scottish people registered with an NHS dentist has almost doubled over the past decade and now stands at five million people, according to bbc.co.uk (2018).

Buyer behaviour
The business of dentistry is thriving in Scotland with a strong market for practice sales and no shortage of buyers, especially in the major cities and central belt. As well as individuals now looking to purchase more than one practice, there is also increasing interest from the dental corporates.

Whilst it may not always be a vendor’s first choice to sell to a corporate, it can actually be very beneficial, particularly if the vendor wishes to stay on in the business post-sale. For example, remaining as an associate is a good way of maintaining income levels until eventual retirement and provides continuity for the patients and staff alike, while continuing to enjoy clinical work without the worries of practice ownership.

Achieving a valuation
While this increase in activity has helped to drive up the values of larger practices, smaller practices typically being taken over by individual dentists are also increasing in value.

Goodwill and practice valuations by MediEstates for Scottish dental practices have risen by an incredible 200% since 2011

When I started in the business of practice valuation back in 2011 dental practices were valued using the traditional method of percentage of turnover. Today all practice valuations are done using the EBITDA method – earnings before interest tax depreciation and amortisation – a metric used to evaluate a company’s operating performance. Once the analysis and cost evaluations are finished we end up with an adjusted net profit figure and that is the figure used for the valuation. Every valuation that Mediestates does is tailored to the individual practice and we work proactively with the vendor to find the right buyer.

Because of the current buoyant state of the market it is essential that both potential purchasers and sellers arrange for a formal valuation as failure to do so could result in a huge discrepancy between the price paid and the true market value of the practice. To avoid this, choose a broker with experience in the dental market and knowledge of the latest market trends and current bank valuations.

At Mediestates we have vast experience of valuing and bringing to the market practices across Scotland from the Scottish borders to the Shetland Islands (and everywhere in between) including popular hot-spots such as Glasgow, Edinburgh and Dundee. There’s a lot involved in selling a practice and we are here to help you every step of the way.
Posted by: Ian Simms 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.
Your shortlist contents will be included in this contact submission