MediEstates - There's no place like Home Counties!
There's no place like Home Counties!

There’s no place like Home Counties!

As with the domestic property market, the value of and demand for a dental practice has a lot to do with its location. At the moment, it’s the Home Counties that is one of the major hotspots for dental practice demand. Scott Gidman considers why

The popular Channel 4 property programme was given the name Location, Location, Location for a very good reason; when you buy a home, it must be in a location that’s right for you. If it’s not, Kirstie or Phil would be the first to point out that no matter how lovely the house is, it won’t be the right investment for you.

This fundamental law of the property market applies just as strongly to the purchase of a dental practice. Before visiting available practices most buyers will carry out research, including an assessment of the local demographics, average disposable income, future property development in the area and other key factors that will indicate the viability of the location for the type of practice they want to develop. This research provides insight into the type of patients they will be able to attract and also the future growth prospects for the new owner’s business.

Location is key
Over the past few years, we have noticed a trend developing that is now having a significant impact on the dental acquisitions market. London has always been a hotspot, where demand for practices often exceeds supply, and competition for practices that do come to market is fierce. Demand has gradually spread outwards from the capital towards the M25 where housing is slightly more affordable and costs are lower.

More recently this ripple effect appears to have expanded beyond the M25 into the Home Counties, Oxfordshire, Kent, Sussex and even down the A3 corridor into Hampshire. Now, in the Home Counties, we regularly have 20-25 interested buyers for every practice, which is double the level of interest we have seen in previous years. This demand is driving prices up and increasing the speed of sale of those practices that do come to market.

It’s a general rule of thumb that wherever there are large populations, such as on the outskirts of London or in the M25 corridor, there will always be a need for essential services like dental practices. And, as the London commuter belt widens, the demand for dental practices increases in the surrounding counties.

Recruitment of dental professionals also has an effect on practice values. It’s an obvious comment but without dentists, hygienists, nurses etc it’s impossible to either fulfil NHS contracts or drive private revenue. With the shortage of professionals, the availability of staff is an increasingly important factor. Those areas of high population not only feed the patient base but also provide a ready supply of staff to run the practice – it’s two sides of the same coin.

A shift in demand
These business demand hotspots are creating what we call ‘investment zones’, which are in turn fuelling demand. There are many small groups of investors who are looking in specific areas, like the Home Counties, for practices that can be part of a ‘buy and build’ scenario. These investors have identified areas with high populations, reasonable levels of disposable income and better recruitment opportunities, because the return on investment for practices in these areas is likely to be strong.

Of course, practices are also bought by dentists who are owner/occupiers and are attracted to the Home Counties as a lifestyle choice. Rather than building up the practice from scratch, as was more common 20 years ago, many are attracted to an already established practice, which they can take over and develop, usually by increasing private revenue.

Both these buyer types are willing to purchase practices that require investment to modernise or adapt, because the location and potential for growth are so positive. The potential for specialist incomes is also high in these more affluent hotspots, where there is plenty of business for practices offering cosmetic, aesthetic, orthodontics and implant treatment.

The popular Channel 4 property programme was given the name Location, Location, Location for a very good reason; when you buy a home, it must be in a location that’s right for you

All of these factors have conspired to create a perfect storm in demand for practices in the Home Counties. Potential buyers looking to invest in these areas know that whilst most things can be changed, the location cannot. If you wish to succeed, enlist the help of Mediestates, one of the UK’s largest specialist dental practice brokers. At any one time, we are marketing over 130 dental practices and our specialist dental property experts can help find the perfect practice for you, before it’s snapped up by somebody else.
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.
Your shortlist contents will be included in this contact submission