Buying or buying into a dental practice

Category: Healthcare - Posted On: Aug 6 2018


Becoming a practice owner is probably one of the biggest challenges and whilst success can never be guaranteed, seeking the best professional advice is the only way to ensure that the odds are stacked in your favour. EQ acts for a considerable number of dental practices and we pride ourselves on our understanding of the help and guidance you need in order to see your business flourish.

What are your options?
• Buy into an existing practice – where you will have the support of experienced partners/principals.
• Take over a practice – with the comfort of an existing patient list and established business processes, but the freedom to make decisions without seeking the approval of other owners.
• Set up a brand new practice – where you can have full control over design of the strategy and ethos, through to the reward of seeing that business grow. However, this is riskier as you begin a business venture with potentially no patients.

Whichever option you might choose, the initial considerations will be similar. Some of which are detailed below.

Diligence Work
Before securing any deal it is important to carry out diligence work. This will include: numerous visits to the practice, a review of NHS inspection reports, a review and assessment of claims and complaints, and an examination of practice records.

Terms of Deal
When securing a deal, the legal teams will prepare the terms for both parties to agree, including other issues such as exclusivity, deposit and actual offer.

Employees
Another aspect to consider is the transfer of employees. It is important to be aware of the legal regulations when taking over an existing business with employees, and the transfer of existing contracts.

Review
Other considerations will include: trading structure, finance requirements, taxation, accounting records, credit control, personal financial affairs and statutory requirements.

We understand that tackling these formalities can be time consuming, particularly when your time could be better spent on getting the business established.

Our dedicated team have years of experience in these areas and can help make the journey to becoming a practice owner easier.

If you’d like to talk to our team about any aspect of buying a dental practice or would like us to assist you in the process, please contact Louise Grant at louise.grant@eqaccountants.co.uk or Anna Coff at anna.coff@eqaccountants.co.uk on 01382 312100.