The prospective acquisition of any target business can be a daunting prospect, especially in the ever-changing dental sector. The arrival of the CQC to dentistry initially brought some confusion to practice sales and purchases and it has taken some time for the dust to settle. Knowing how to navigate a practice can be very valuable in promoting a smooth process

Identify your ideal
If you are unclear about what your ideal practice would be, you can waste much time (and potentially money) in investigating all kinds of practices that will never be ‘right’ for you. There are many variables with a practice purchase and establishing what will be most suitable for you from an early stage will certainly help. The most fundamental things to consider will be the location, turnover, budget, the type of work undertaken, number of surgeries and so on and so forth. If you can prepare a list in your mind, it will make the process much simpler from the outset.

Know your budget
Understanding your means can prevent you from having the heartache of pursuing the perfect practice, only to discover at the last hurdle that you are unable to purchase due to your financial situation. It is undeniably disheartening to find the practice of your dreams, put forward an offer which is acceptable to the vendor, lodge a deposit and then discover that the time and money you had invested in this acquisition was a complete waste. Knowing your realistic budget can help you to focus on practices that will be attainable, speeding up the process and preventing ethereal distractions.

Seek sound advice
When the professionals that you choose to assist you in the process don’t have relevant experience, it can substantially prolong progression. From dealing with the bank, to the accountant who reviews the figures for your target practice, to the solicitor you instruct for the legal process, ensuring that they have the sector specific knowledge to guide you through the process can make all difference as each have a bearing on the timescale involved. Of these three, it is perhaps of the greatest importance to select a solicitor with specialist dental knowledge as they are in the position to protect your interests into the future and the consequences if they do not do so can be far reaching.

Understand the process
Once you’ve found the perfect practice and you’ve got specialist professionals on board to help you, the process can still seem to drag on if you don’t know what to expect along the way. Having a basic understanding of the process can really help to expedite it. When approaching the bank, ensuring you provide all the relevant information not just about you and your finances, but also about the practice and having a business plan in place will help. Another example of how you can get organised is to get all of the information together that you will need for your registration with the CQC in advance of your contact with them.

Emotion vs. intellect
Striking a good balance between heart and head is useful when buying a practice. Letting your emotions rule completely can be dangerous if it causes you to be indifferent about issues that arise. Making use of your knowledge can truly help you to identify a sound investment opportunity and to evaluate the practice. However, it is very important not to forget that the sale of the practice can be extremely emotional for the vendor. This is the business that they have grown and nurtured over what may have been many years. When giving your feedback following a viewing or during negotiations with a prospective vendor, this is especially important to bear in mind. Finding a practice that ‘feels right’ is fantastic, but don’t allow yourself to be narrow-minded because of this when analysing the business in more depth.

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