Independent dentists are returning to Scotland’s dental practice acquisition market as larger corporate operators concentrate on their existing businesses, according to observations shared following the NASDAL Scotland Forum.
Corporate groups had previously exercised considerable influence over the market, making it harder for independent purchasers to compete for practices.
‘The corporates ruled the roost and largely controlled the marketplace in Scotland for a number of years,’ one contributor told Dentistry.
However, they said some corporate operators were now directing greater attention towards their existing portfolios.
‘They’re looking inwards, trying to sort rather than outwards, trying to acquire.’
That change was said to have created more room for independent dentists, including younger buyers purchasing their first practice and existing owners acquiring second or third sites.
‘You can’t keep an entrepreneur down,’ the contributor added.
Banks support independent buyers
The shift has been supported by continued lender confidence in Scottish dentistry.
The forum heard that several banks were actively financing associate-to-principal transactions, creating competition between lenders and, in some cases, more generous terms for buyers.
One contributor said banks continued to view dental practices as comparatively low-risk businesses, despite wider economic uncertainty.
Access to finance was giving prospective owners confidence to pursue acquisitions. However, advisers warned that obtaining funding did not remove the need to examine the quality of the business, staffing pressures and the responsibilities attached to ownership.
Opportunities from corporate disposals
The forum also heard that practices released by corporate operators could create opportunities for independent buyers.
A practice that proved difficult to operate within a larger group could perform differently under an owner working within the business.
‘A ship always sails better when the captain’s on board,’ one participant said
Buyers turn to AI for advice
Advisers were also seeing a number of younger purchasers use artificial intelligence (AI) during the acquisition process.
Some buyers were reportedly uploading business or share purchase agreements to AI tools and using the resulting analysis to question their accountants and lawyers.
The contributor said this could help buyers engage with complex documents, but could also create expectations based on inaccurate or incomplete advice. AI systems may draw on legal material from England and Wales that does not apply in Scotland.
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