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Dental Times - Practice Sales Intelligence - July
01332 609318
24 June 2017


PRACTICE ONE
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 TWO
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 THREE
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 01 Jul 2016