Olivia Allison, senior business agent – dental at Christie & Co, describes the current dental market in the north of England.
Appetite in the region
So far this year, at Christie & Co, we’ve brought over 140 new practices to the market, achieved 545 viewings, and received over 485 offers across the UK, which illustrates the appetite for quality dental practices.
This trend is also apparent in the north of England where I recently marketed a mixed-income practice in Leeds, receiving eight viewings and five offers within one month of launching the practice to market.
Who’s buying?
While corporate appetite remains subdued due to ongoing integration and consolidation of their portfolios, there are huge numbers of active independent first-time buyers and multi-site operators that are fuelling activity across the northern market.
Many of these buyers have worked as associates in corporate dental settings and are now looking to transition into ownership – they seek the independence that comes with owning a dental practice and the opportunity of enhanced earnings.
Despite the challenges of student debt and limited experience, some are eager to establish themselves as practice owners early in their careers. They are often attracted by the potential long-term benefits of ownership, such as building equity and having control over their professional future.
I’m also finding buyers are a lot more aware of the cost of running and owning a practice at the moment, which is resulting in higher standards/requirements when looking for a business to buy – the practice has to fit the majority of their search criteria.
As a result, sellers are experiencing increased competition among potential buyers. Well-performing practices that align with buyer expectations attract multiple offers, giving sellers the advantage of negotiating better terms and pricing.
What are they buying?
The appetite for stock on the market in the north of England echoes what we’re seeing across the country. Where practices with bigger NHS contracts would typically garner significant interest, we’re seeing hesitation from some buyers due to complications around contract fulfilment and recruitment challenges.
That said, practices with NHS revenue are still desirable, with particular demand from first-time buyers who want a ‘guaranteed’ income and will operate the practice themselves.
Due to the movement from associates wanting to treat privately, and the continued public demand for aligners and aesthetic dentistry, we are, in turn, seeing huge demand for private practices from buyers at all ends of the spectrum.
Where are they buying?
Buyers’ preferences are predominantly focused on centrally located practices near large towns and cities. Nevertheless, there is a growing recognition among buyers regarding the worth of good quality, privately-owned practices situated in rural areas.
They are expanding their search to acquire exceptional, profitable practices at attractive prices beyond urban settings.
To find out more about the dental market in the north of England, or for a confidential chat about your business options, email [email protected] or call 07702 803 356.
