Strike while the iron is hot
Featured Products Promotional FeaturesPosted by: Dental Design 18th May 2021
The pandemic has been tough on the economy, and every dental professional will be aware that this is a tricky time. However, what we also need to remember is that every recession does have a silver lining. Now is a good chance to assess your finances and, depending on your goals, take the opportunities that are ripe for the plucking.
This is especially true if you are looking at buying your own practice or an additional practice to expand your empire. For the first time in history, the Bank of England could be heading into negative interest rates due to the impact of Brexit and Coronavirus. While this comes with some serious concerns, it does mean that borrowing money in the form of mortgages is incredibly affordable at the moment, so if you have the funds, now is a great time to buy.[i]
But what do you need to consider before purchasing a new practice? Much like any big decision, acquiring a practice is not always as simple as it seems and professionals need to be aware of the process before diving in the deep end.
The fundamentals
Much like buying a house, buying a dental practice effectively boils down to the contract terms and price agreed between the buyer and the seller. However, while this is simple in theory, there are many other considerations that dental professionals need to bear in mind.
For example, you’ll need to send an application to the CQC to ensure that you are ready to begin operating your practice once ownership has been transferred to you. It is also important to consider whether the practice is private, mixed or NHS and the multiple aspects involved with taking on each type of these businesses.
You have due diligence to find out everything you can about the practice you want to buy – not only how it operates as a business, but also how sound the property is as building and whether there are any issues there, if you’re purchasing outright.
One important early step that a lot of professionals take is to hire their own valuation expert for the property rather than trusting the seller’s price at face value. This way, you can make sure that you are being offered a price that is fair, especially if you are unsure whether the current offer is a particularly good rate for the area and size of the practice, as well as the amenities that are included.
Basically, even at the very beginning there are plenty of areas that you must explore, which, if you are busy and don’t have a lot of free time, can make the prospective sales process a seemingly mammoth task.
The finer details
What you also need to be prepared for is that every step of the buying process may give rise to new challenges, as well as the extra challenges that owning another practice could bring. If you are expanding your business and forming a group, you’ll already be aware of the hardships that balancing different locations can involve. If buying your first practice, being aware of what your role now entails beyond simply offering care – such as ensuring the practice’s success and the wellbeing of staff, among many other elements is of vital importance.
The importance of seeking help
The best way to ensure a smooth property acquisition process is to enlist help from experts to guide and advise you. Again, due to the complexity of a business sale, this does mean that you can quickly find yourself enlisting the help of multiple people from different companies.
What you need to ensure is that you’re receiving independent, trustworthy advice from individuals. Look closely at the lawyers and experts you want to work with and make sure they are the ones best suited to help you.
It’s imperative to work with people who understand the dental industry and what this entails when it comes to buying a practice. It’s easy to find property lawyers, but unless they understand the added complexity of dentistry, then it’s likely that they are not the best-suited firm to represent your interests.
If you’re looking for tailored, independent advice from experts in the industry, you should speak to the award-winning team at money4dentists. Not only does the team work solely with dental professionals and therefore understand the industry inside and out, but they also have decades of experience supporting professionals through practice acquisitions and can offer you the guidance and insight you need to succeed.
Nothing ventured, nothing gained
Buying a dental practice will always be a gamble in certain respects. However, if you seek expert advice from those who understand the industry, can work with you on achieving your goals and who will ensure that the acquisition process is as stress-free as possible, you can rest assured that you start off your new adventure on the right foot.
For more information please call 0845 345 5060 or 0754DENTIST.
Email info@money4dentists.com or visit www.money4dentists.com
[i] Which? What Will the Brexit Trade Deal And Coronavirus Mean For Interest Rates? Link: https://www.which.co.uk/news/2021/02/what-will-the-brexit-trade-deal-and-coronavirus-mean-for-interest-rates/ [Last accessed February 21].
