Selling a dental business – is your practice ready for the market?

Tom Morley reveals the most important questions to ask before starting the process of selling your dental business.

Selling a dental practice requires careful consideration of practical and emotional factors. Along with seeking guidance from professionals, taking the time to plan each step by answering these questions can help ensure a successful transition.

Why are you selling?

Understanding your motivation for selling can influence your approach to selling, the timing and terms you are willing to accept.

How much is my internship worth?

Getting a professional appraisal of your practice is essential to determining fair market value and setting an appropriate asking price. Find an agent who meets industry standards and is regulated by the Royal Institute of Chartered Surveyors (RICS) to carry out your valuation.

Is my practice financially ready?

Review your financial records to ensure they are organized, accurate and attractive to potential buyers. This includes income, expenses and assets.

Is my workforce sustainable?

Buyers are often interested in practices with stable staff in both clinical and support roles. Consider the loyalty and retention rate of your workforce and whether there are any measures you can take to build on this, if necessary.

What is the condition of my equipment and facilities?

Assess the condition of your dental equipment, office space and facilities. Improving or maintaining these assets can increase their appeal to potential buyers.

Have I consulted professionals?

Seek advice from experts such as a RICS registered dental practice broker (such as Christie & Co), specialist accountants and solicitors and financial advisers to guide you through the sale process.

What is my transition period after the sale?

Determine how involved you are willing to be after the sale. Are you open to remaining in the practice as an associate or consultant for a transition period? In some cases, staying in practice after the sale allows sellers to maximize their sales value.

Think about what support you will offer to help the new owner integrate smoothly – whether it’s training, introducing patients or sharing best practices.

What are my expectations for the sale?

Clarify your expectations regarding terms of sale, payment structure and any contingencies you may have. Hear the sound advice and comparable evidence your broker offers.

How will I market my practice?

Do you want a confidential sale or are you happy to market it openly? Either option will give you a ‘whole of market’ sales approach, but you need to determine what is best for you, your staff and your patients.

Am I ready for a confidential process?

Selling a practice often involves maintaining confidentiality to protect patients, staff and the value of the practice. Make sure you have a plan to handle this aspect.

What will happen to my staff?

Address the future of your transitioning employees. Will they be retained by the new owner and how will their interests be protected?

Are there legal considerations?

Understand the legal and regulatory requirements involved in selling a dental practice. This may include any NHS guidance.

Have I prepared information packs?

When it comes to selling a business, preparation is key. The more information you have before the process begins, the smoother it will be.

Create a comprehensive package that includes key practice details, financial data, patient demographics and other relevant information to share with your agent and, subsequently, potential buyers.

How will I negotiate offers?

Getting an offer is just the first step. Negotiating the terms and ensuring the deal is completed without price chips is the hardest part. Your agent will take a hands-on approach to get you the best price and deal terms.

What are the tax implications of the sale?

Consult a tax advisor to understand the tax implications of the sale and explore strategies to minimize tax liability.

What time frame am I looking at?

Determine your ideal timeline for the sale, transition and delivery. Flexibility can be important to accommodate buyer preferences.

Who are the potential buyers and how to choose the right one?

With the help of your broker, identify the types of buyers you are open to working with. For example, individual dentists, small dental groups or corporate entities. When choosing the right buyer, remember that it’s not just about the highest bid, but also about compatibility and alignment with your practice’s values.

What will I do after the sale?

Have a plan for your life after the sale. Whether it’s retirement, starting a new venture, or pursuing other interests, knowing your next steps is important.

If you are thinking of selling your dental business or would like more information about the next steps, contact Tom Morley at (email protected) or 07540063172.