Grouping together increases value

Over the course of the month of August, aided by Dental Elite, a group of six individual dental practice owners in the north east successfully completed on the sale of their seven dental practices to a small corporate from the south of England.

The grouping of the practices together allowed the group to secure a value 15–20% more than their individual valuations, and for one practice a price of £300,000 more than a heavily negotiated offer from a well-known dental corporate.

Whilst the sale of the group was a little more protracted than a typical sale, it was heavily contested by two main contenders, neither of whom were groups with a presence already in the area.

The negotiation process also allowed those with greater private turnover to be free from the burdens of private income targets and deferred consideration.

They were also in the enviable position of being able to choose the offer from the bidder they felt most reflected their clinical ambitions and who they and their teams would enjoy working with most in the forthcoming years.

Dental Elite commented: 'Whilst the practice sale negotiations were, at times, more fraught than most, purely down to the number of stakeholders involved in this transaction.

'I feel the principals recognised that a substantial premium was paid by the group to secure a platform entry into another area.

'Put simply, practice sales in London and the south east are now so competitive between individual purchasers, that I feel both bidders wanted entry into another area in the country where they can add to their estate with slightly less competition, and also to give them access to more practices that come to market.

'Given that both of the big corporates walked away from this deal, I also feel it only serves to prove that just because you own a bigger practice, it doesn’t mean the "best" purchaser for the practice is one of the big boys.'

For further information please contact Dental Elite on 01788 545900.

Become a Dentistry Online member

Become a member
Add to calendar