There are several issues that regularly crop up when dealing with the sale and purchase of dental businesses and companies. Identifying those issues at the outset and rectify them will avoid any potential impact on delaying the timescales of the transaction.
The main issue is usually that the lease when is not in the correct name. If it is a share sale then the lease should be in the name of the target company. If it is a business sale then it should be in the name of the sellers.
Other issues related to the lease are;
With regards to the NHS Contract, aside from the usual under-performance issues there are several points to check in relation to the contract which can cause problems in a transaction, for example;
The main question around the CQC arises when a practice has been incorporated and either the limited company isn’t a registered provider or there is an NHS contract held outside of the company and the providers under that contract aren’t registered with the CQC.
CQC applications are currently taking an average of 3 to 4 months to be approved so it is imperative that, if any new registration needs to be applied for , this has to be done at very beginning of the due diligence process.