Successful buyers have confidence, determination, a business plan and an enthusiastic vision to add value to the practice they are buying.
Buyers scrutinize the latest sets of trading accounts, all contracts and staff contracts, all clinicians and income generators in practice, and the NHS contract statement of activity for any historical or recent under-performance.
More buyers have now the capability to adapt to the changing market and the trust in their agent, financial broker and legal team.
Experts buyers also look at current level of occupancy percentage, which is the length of time that surgeries are used.
Larger groups and successful practices have an average occupancy of 90%, so they know that if they view a practice with an occupancy rate below this level, there could be an opportunity for improvement.
The improved occupancy could be also facilitated by having an extension to the property when possible, the availability to add more space through changing the layout or extending outside to have additional space.
Most buyers fail because they try to copy others, without understanding that everyone will have a different set of skills that can be introduced to a new dental practice, to take it to the next level post completion with renewed energy.
Dental schools teach students how to be great clinicians, but not enough time is spent on the managerial role that will await a practice owner.
Schools and the traditional education system teach us how to add and subtract, but never how to maximize on the investments or opportunities. Having a vision and the ability to improve and add personal mark on a dental practice is key.
The most active buyers currently are:
Max Bazzucchini is a director, partner and shareholder at The Pluto Partnership Ltd, ACCA certified Business Valuer and member of BIDA (British International Doctors and Dentists Association)