With patience, the right deal is always achievable

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Posted by: Dental Design 12th October 2021

As would be expected, Dr Martin Van Rensburg had some concerns before selling his dental practice as he approached retirement. He shares his experience:

“I did not really want to sell as I enjoyed and loved my practice very much. Unfortunately, the biological clock is merciless and after a career of more than 40 years in dentistry, I realised that I had to step back and execute the exit strategy I had decided on when purchasing the business 10 years ago.

“When it came to finding a buyer, I was looking for an uncomplicated deal with a minimum tie-in period. I was sceptical about big corporates as I wanted to avoid a highly regulated environment and style of management post-sale. Ideally, a small corporate with personal interest would have been ideal. The aim was to continue working as an associate in a well-managed, low-stress environment, concentrating on the clinical expertise I have developed over so many years. Establishing a new source for referrals would also have been beneficial.

“Aside from the potential tie-in period, I was concerned about how the buyer’s management style might influence my clinical freedom or retirement options. I also had worries regarding the due diligence process and the structure of payment of the consideration – to name just a few.

“In the end, the greatest challenge was in needing to be patient as I stuck to my requirements for a potential buyer and what I deemed a good deal. I interviewed a raft of qualified buyers over more than two years and dissected many offers. Unfortunately, Covid happened which compromised the first Heads of Terms I signed and I had to walk away as the new terms were unacceptable to me. I had to consider and execute an alternative approach, which – fortunately – resulted in an even better deal with a new buyer and ticked all the boxes. One of the advantages of the new buyer was that they made the due diligence process focused and relatively uncomplicated.

“I worked with Leah Turner from Dental Elite throughout the process, who I approached following referral by a colleague who sold his business through the organisation. The development of my particular agreement brought me in close contact with the buyer to hammer the deal out face-to face, but Leah was always there to advise when negotiations got stuck and remained in regular contact. I would definitely recommend Dental Elite as they field experienced consultants and introduced well-qualified buyers.

“For any colleagues considering the sale of a practice, I would advise developing your exit strategy before or as soon as you buy your practice. It’s also good to set your goals and start interviewing potential buyers well in advance of your target date. You have to be patient and careful not to sign a compromised deal – either continue negotiating until it works for you or walk away. In time the right deal will come around. Engaging with an experienced team like Dental Elite to advise and support you is also important, as is selecting an experienced solicitor and accountant to fight your corner – especially if a NHS contract is involved.”