Amid these pressures, one truth remains constant: practice value is driven by profit, not turnover. So even those practices experiencing strong turnover growth need to act quickly to protect their value.

In our recent webinar, Margins Under the Microscope, Alison Bates, our Valuations Department Manager, explored the strategies Principal Dentists can use to build sustainable profitability and protect long-term practice value.

Rising Costs Are Reshaping Dental Practice Economics

Dental practices are operating in an increasingly challenging financial environment. National Minimum Wage increases alone have significantly raised staffing costs, with rates for over-25s rising by 43% between 2021 and 2026. Apprentice wage rates have increased by an astonishing 86%.

At the same time, Employers’ National Insurance changes, inflationary pressures and rises in utility costs and general overheads have all added to the burden on practice profitability.

Within dentistry specifically, practices are also facing:

• Increased associate NHS remuneration – with UDA rates growing upwards of 18%
• Higher hygiene pay expectations – 25-29% increase in five years
• Recruitment and retention challenges, particularly with NHS Dentists and Nursing roles
• Growing support teams such as in-house TCO and marketing roles
• NHS clawback pressures
• Rising compliance and HR costs

For many owners, the result is a dangerous squeeze on margins, with the greatest impact felt by predominantly NHS practices who are unable to adjust treatment prices to absorb these rising costs.

Impact of Rising Costs on Profit

When you compare a mixed-income, four-surgery practice in 2020 versus 2025. While turnover grew dramatically from £1.02 million to £1.64 million, EBITDA barely moved – rising from approximately £247k to £254k.

The reason? Costs escalated significantly quicker than revenue.

Key increases included:

• Clinician costs rising from 35.9% to 40% of turnover
• Staff costs increasing from 15.6% to 20.5% of turnover
• Lab costs also climbing steadily from a focus on cosmetic dentistry

Despite substantial revenue growth, profitability as a percentage of turnover fell sharply from 24.2% to 15.5%.

This highlights a critical misconception among practice owners – turnover does not equal value. As Alison Bates explained during the webinar, valuations are based primarily on profit because that is what buyers and lenders assess. Even small improvements in EBITDA can create significant increases in practice value when multiplied across valuation metrics.

Focus on What You Can Control

Many external pressures affecting dentistry are outside the control of practice owners:

• Inflation and interest rates
• NHS reform
• Recruitment shortages
• Government policy
• Market conditions
• Competitors

However, successful principals focus on controlling the variables that are within their influence and can positively impact profitability.

These include:

• Practice presentation and patient experience
• Team culture and morale
• Treatment pricing
• Chair utilisation
• Recall systems
• Software automation
• Missed revenue opportunities
• Clinical efficienc
• Understanding financial performance by working with a dental practice valuer

Whilst operational discipline can be a great driver of turnover, without knowing how this translates into profit can be detrimental. Once you understand what is driving profit, you can begin to increase it!

Do You Really Know Your Numbers?

Benchmarking and financial awareness are key to running a profitable practice which will command a higher price when it comes to your exit.

Many practice owners know their turnover figure but far fewer understand exactly what percentage of revenue is being consumed by costs. Without this visibility, cost leakage can quietly erode profitability.

Benchmarking allows practices to:

• Compare performance against similar practices
• Identify overspending
• Forecast future financial performance
• Make better strategic decisions
• Understand where profitability is being lost

Importantly, understanding your numbers enables smarter growth decisions. Before investing in new services, equipment, or staffing, owners should assess the likely impact on EBITDA, not just revenue. Sustainable profit matters more than uncontrolled expansion.

Timing Matters More Than Many Owners Realise

For Principal Dentists considering a future sale, timing is crucial. Exit planning should ideally begin 5–10 years before an intended sale date because value optimisation takes time. Buyers want to see sustainable, repeatable profitability.

The type of buyer also affects timing:

• Smaller practices (typically under £750k turnover) are often attractive to independent buyers reliant on bank funding.
• Larger practices are generally more suited to corporate acquisition, but these deals frequently involve tie-in periods lasting between two and five years.

Planning early provides flexibility and increases the likelihood of maximising sale proceeds.

Common Misconceptions About Practice Value

Many owners unintentionally overestimate their practice value due to common assumptions, such as

• “The practice down the road sold for £1 million, so mine must be worth the same.”
• “High turnover guarantees high value.”
• “A buyer will pay for future potential.”
• “My associate will buy me out.”
• “I can sell whenever I’m ready.”

Buyers assess sustainability, profitability, risk, and future growth opportunity very carefully. Even highly profitable practices can encounter valuation challenges if growth potential is exhausted or operational risks are too high.

Market Conditions Still Matter

While owners cannot control market dynamics, staying informed is essential.

The webinar highlighted several current trends:

• Goodwill values of Mixed practices averaging 124% of gross fees (July 2025 NASDAL data)
• Continued appetite from independent buyers supported by strong bank lending conditions
• Slowing corporate acquisition activity with an increasing focus on sustainability and clinical tie-in to mitigate risk

Understanding these trends helps owners make informed decisions about when to bring a practice to market.

Get a Professional Valuation

A valuation does far more than provide a headline figure. It helps owners understand:

• Profitability benchmarks
• Areas of inefficiency
• Growth opportunities
• Future sale readiness
• How buyers will view the business

Most importantly, it creates time to improve profitability before a sale becomes urgent. Building sustainable profit now will protect your business for a future sale.

The post How Do You Protect Practice Value Amid Rising Costs? appeared first on Henry Schein Dental Practice Sales.

“A common misconception is that you only need to have your practice valued when you’re ready to sell,” begins Alison Bates, Valuations Manager for Henry Schein Dental Practice Sales. “But we need to challenge that, which is what the Practice Sale Readiness Checklist does.”

When it comes to selling your dental practice, preparation is fundamental. And with over two decades of experience in healthcare acquisitions, Alison knows this well.

“Ideally we work with practice owners at least five years before they’re ready to sell,” explains Alison. And while planning this far ahead may seem excessive, there are a few key reasons for doing so – which some dentists may at first overlook without the correct guidance.

Download the Practice Sale Readiness Checklist

Why Should I Start Thinking About My Practice Sale Now?

To Ensure Your Valuation Meets Your Expectations

If you wait until you’re ready to sell before getting a valuation, and that valuation then comes back as a lower figure than you’d hoped, you have limited time to rectify it before retirement. The Practice Sale Readiness Checklist helps to “set expectations in the right place”, according to Alison.

“At Henry Schein Dental Practice Sales, we work with you to grow your practice value and then maintain it,” she continues. “There are a lot of different suggestions that we can make which you may not have considered as a clinician. You look at your business with a dental hat on, but we look at it with a financial hat on.”

To Allow Time To Make Adjustments

“It’s not just about giving you the tools to make changes, but also the time,” explains Alison. With accounts produced annually, a change today doesn’t necessarily mean tangible results tomorrow – in fact, realistically this could take a year or more, so making appropriate changes in your practice is best done sooner rather than later.

“As an example, let’s say you’re overstaffed – this could be costing your business hundreds of thousands of pounds in terms of value. Henry Schein Dental Practice Sales can help to translate what you do on a day-to-day basis into financial performance. We’re here to provide you with information that you might not have known, and identify potential inefficiencies within your practice.”

To Fulfil Contractual Obligations

Contrary to what you might believe, it isn’t always possible to simply sell your dental practice and leave. “You can’t necessarily just sell your businesses and walk away, particularly if you have a bigger dental practice that you’re going to sell to a group or a corporate,” says Alison. “They will need the principal dentist to keep working for three to five years as an associate after they’ve sold the business.”

Because of this possibility, it is important to consider well in advance any commitments that you may potentially have to honour upon selling your practice.

“It’s comprehensive,” begins Alison, when summarising the Practice Sale Readiness Checklist. “It not only covers what to do once you’re ready to sell, like the legal process and due diligence, but also the other moving parts, like having regular valuations, how you grow, how you build, and how you prepare your practice for a sale. It’s an overview of the whole process from start to finish.”

“The Practice Sale Readiness Checklist is a comprehensive checklist of things that dental professionals don’t know they need to know – but they do need to know.”

If you’re ready to get in the know and get ahead when it comes to selling your practice.

The post Are You Prepared for Your Practice Sale? Assess your practice sale readiness [free checklist] appeared first on Henry Schein Dental Practice Sales.

As a dentist who’s been running a practice for a few years, you’re likely familiar with the constant balancing act of managing patients, staff, and the overwhelming administrative responsibilities that come with owning a business. The passion that drove you into dentistry initially may feel increasingly overshadowed by the day-to-day challenges of running a practice. 

The good news? You’re not alone.

A growing number of dental practice owners in their 30s and 40s are realising that the demands of practice ownership can take away from the parts of dentistry they truly love. If you’re considering selling your practice, it’s a step toward reducing responsibilities and returning solely to what originally inspired your career: providing care to your patients. 

Read our interview with Stuart Garton, previous practice owner of The Dental House Liverpool, who sold his practice seven years into his ownership in order to reduce responsibilities. The practice completed within nine months and he was able to work within the practice on a part-time basis, enabling him to get back to clinical work.  

“Those selling should consider reaching out early, even if you’re only contemplating the idea for the future. Seeking feedback on accounts, evaluating areas for improvement, and preparing the practice for sale well in advance can significantly enhance the selling process. Personally, I wish I had engaged in this process earlier; it likely would have made the transition smoother.”

Questions?

If you’re considering selling or buying a dental practice, or need to refinance, chat to one of our experts by contacting us here.

The post Selling your Dental Practice: Not just for retirement. appeared first on Henry Schein Dental Practice Sales.

A thriving dental plan doesn’t just generate steady, recurring revenue—it also reflects strong patient loyalty, predictable cash flow, and overall business resilience. These are critical factors that buyers and valuers look for when assessing the worth of a practice, and they can make a significant difference to your final valuation.

Watch the Impact of a Plan on your Practice Valuation webinar on-demand here

The live session was delivered by Harriet Mordecai, Business Development Manager at Patient Plan Direct and Alison Bates, Practice Valuations Team Manager at Henry Schein Dental Practice Sales, was recorded on 12th June 2025 for dental practice owners to watch on demand here

Questions?

If you’re considering selling or buying a dental practice, or need to refinance, chat to one of our experts by contacting us here.

The post On-Demand Webinar: Impact of Dental Plans on Practice Valuation appeared first on Henry Schein Dental Practice Sales.

BADR (Business Asset Disposal Relief), previously known as Entrepreneurs’ Relief, is a UK tax relief designed to reduce the capital gains tax (CGT) when selling all or part of a business.  

On 6 April 2025, BADR increased from 10% to 14% as part of the Budget. 

BADR is set to increase another 4% from 6 April 2026 to 18%, impacting tax bills from any asset disposals, such as a dental practice sale.  

Owners planning to sell a practice with substantial goodwill, property, or equipment will face increased tax liabilities in the next financial year. As net proceeds from selling a practice will decrease, this could impact any retirement plans or reinvestments you’ve been considering. 

What to do next

You may consider bringing your sale forward to avoid the tax rises. Or you may decide to change your exit strategy given the potential impact.  

If you’re considering selling your practice in the near future, it’s crucial to act now and get an up-to-date valuation to understand how much you stand to lose based on the higher tax thresholds. 

Practice sales can be a complex process with the average sale taking 6-9 months to complete. Acting sooner rather than later will therefore put you in the best position to achieve a successful sale outcome ahead of the tax changes, thereby maximising your sale proceeds 

The post How Will the BADR Tax Relief Changes Affect Me? Guidance for Dental Practice Owners  appeared first on Henry Schein Dental Practice Sales.

The British Dentistry Show will take place on 16 & 17 May 2025 at the NEC in Birmingham. It’s the UK’s largest event for dental professionals, with 400+ of the largest brands in dentistry and 200+ world renowned speakers.

We’ll be on stand M30 meeting practice owners who want to understand the value of their practice and answering questions such as how to increase the value of a dental practice by reducing costs and driving profitability, or when’s the best time to start planning an exit strategy or what to consider when selling or buying a practice.

We’ll also be supporting buyers looking for their first or next purchase, with experts available to discuss opportunities that match their buying criteria. Our finance consultants will also be on-hand to discuss securing funding for practice purchases as well as refinancing options.

The Henry Schein Dental Recruitment team will also be on-hand to answer questions about staff retention and acquisition of new team members. They’ll also be on hand to offer support to dental professionals looking for work by offering access to our dental hub; ensuring they receive alerts to opportunities to match their career goals.

Register for our presentation: Protect your value – how to mitigate the rising costs of running your dental practice

We’ll be partnering with leading dental accountancy firm UNW to present in the Practice Owner and Business Management Theatre on Saturday 17 May. Join us for a discussion around the rising costs of owning a dental practice, how these can be mitigated to protect the value of your dental practice.

The presentation will take place at 3-3.30pm on Saturday 17 May in the Practice Owner and Business Management Theatre, led by Practice Sales expert at Henry Schein Practice Sales, Alison Bates and Head of Dental at UNW Mike Blenkharn.

Find out more about the presentation on the Dentistry Show website

Can’t make the show?

If you can’t attend the Dentistry Show this year, why not watch our Mitigating the Rising Costs of Owning a Dental Practice webinar or you can arrange a call back from one of practice sales experts to discuss your circumstances.

Ready to book a valuation? Book a visit from our team here

The post We’re speaking at the British Dental Conference & Dentistry Show 2025 appeared first on Henry Schein Dental Practice Sales.

Key Findings from the Survey:

• NHS Goodwill: Values surged to 175% of gross fees, up from 129% in the previous quarter.
• Private Practices: These saw a rise from 111% to 143% of gross fees.
• Mixed Practices: After facing challenges in recent times, mixed practice goodwill values rose from 107% to 154%.

What Does This Mean for the Market?

Mike Blenkharn, Partner and Head of Dental at UNW LLP, who compiled the survey, highlighted that these impressive figures signal a return of confidence in the market. However, he also cautioned that these numbers reflect deals initiated in 2023 and early 2024 when activity in the market was exceptionally high. While the market remains strong, he warned there may be a slight pullback in the next quarter.

Remember however, the survey’s figures are influenced by a time lag of 9 to 12 months, meaning that these statistics are based on deals that were initiated before a series of events that have affected practice sales.

These positive figures suggest that the dental practice sales market is currently buoyant, and interest in practice acquisitions is strong. However, market dynamics could shift due to factors like interest rate changes and political uncertainty, making it crucial for stakeholders to remain agile in their decision-making.

Alison Bates, who heads up our valuations team said:

“We have felt the momentum with the market for the last 6 months and it is really reassuring to see the official NASDAL report confirming the return to a buoyant practice sales market. The rise in average goodwill values will ensure a great return on investment regardless of practice type and for those Principals who have put off selling their practices due to the wider economy and high interest rates, now is a great time to take that step towards a sale with both independent and corporate buyers keen to purchase.”

Get an up-to-date valuation to help realise the potential in your practice

An expert practice valuation can highlight the areas you need to act on to realise the profit in your practice and get the best price when the time comes to selling. Valuing helps you make a more informed decision of when to sell and can helps set realistic expectations for what your practice may be worth, the likely buyer type and any post-sale obligations you may face.

Book a valuation here or contact us to have a confidential chat about your dental practice.

The post A Buoyant Market: NASDAL’s Latest Goodwill Survey Results for Q3 2024 appeared first on Henry Schein Dental Practice Sales.

• Are practices reducing the associate split to counter the increase in costs?
• How do you calculate the nurse hour v clinician hour ratio?
• What formula do you use for hygienist recharge with Associates?
• Does it make sense to increase pension contributions to the max £60K as a ltd company?
• If it is possible to know new percentages for NASDAL / expected costs on average, what most practices are doing in increasing fees or restructuring?
• Any process automation ideas that are financially proven to help reduce costs rather than distract and add complexity
• Can an NHS Dental contract be sold independently and how?

And more!

Watch the How to Mitigate Rising Costs webinar here

The live session was delivered by Mike Blenkharn Partner and Head of Dental at UNW LLP and Alison Bates, an expert in dental practice valuations at Henry Schein Dental Practice Sales, was recorded on 27 February 2025 for dental practice owners to watch on demand here

Download your guide

UNW has compiled an Autumn Budget summary which includes changes announced during the Autumn Budget, and measures previously announced, but only coming into effect from April 2025 or later. The guide provides a summary of changes relating to personal tax, employment, business, capital taxes, inheritance tax and other matters. Download your copy today

Get expert help to mitigate rising costs and protect your profit

By acting now, you can protect the profitability of your practice which is the most important measure when it comes to valuing your practice when you come to sell. Book a valuation here or request a call back from one of our experts to see how we can help.

For expert specialist advice and bespoke tax planning, contact the UNW Tax partners

The post On-Demand Webinar: How to Mitigate the Rising Costs of Owning a Dental Practice in 2025 appeared first on Henry Schein Dental Practice Sales.

As part of the Government’s investment plans to drive growth and restore public services and economic stability, the Chancellor announced £40 billion in tax rises in the Autumn budget. With the largest part of this coming from increases in employers’ National Insurance Contributions (NICs) from April 2025, it is no wonder 75% of practice owners are concerned ahead of the new financial year.

Here are 5 ways to help mitigate the rising costs of running a dental practice:

1. Staffing costs

With recruitment challenges across the sector, we are seeing many practices operate with a higher level of staffing as a buffer. Whilst this may help operationally, for those Principals looking to sell over the coming years it is important to ensure that staffing costs are well-controlled as this generally creates the biggest threat to value during a sale-process. Perhaps a staff member leaving presents the opportunity to review need, before replacing like-for-like.

2. Hygiene efficiency

Clinical efficiency is also an important metric which can impact a practices profitability and therefore value. Practices tend to understand the efficiency of their Associates, but this is not always the case for Hygienist being paid an hourly rate. Optimising chair-time for Hygienists and ensuring appropriate recharges are in place for plan patients are two ways in which efficiencies can be realised.

3. Marketing Spend

Many practices are choosing to engage in paid marketing activity; a wise investment if it attracts new patients and increases uptake of targeted treatment types. However, many practices fail to review the effectiveness of their marketing spend and if it is not significantly driving turnover then it can become a cost-drain to the business.

Whilst turnover growth is a key indicator of business success, profitability is the most important measure when valuing a practice for sale. Therefore mitigating rising costs, with cost savings elsewhere within the practice will have the most positive impact on value.

4. Growing turnover

Turnover growth can be achieved by increasing clinical capacity if chair-time allows or offering new higher-grossing treatments in-house. Particularly for those practices that have a high-cost base through over-inflated rent/rates payments or over-staffing, growing turnover into your cost base can be an important way of protecting profitability.

5. Increasing treatment prices

Many practices will look to mitigate these cost rises by increasing their fees, both for fee-per-item and plan patients. An annual strategy of small incremental price increases can easily be absorbed by patients helping to protect profit. However, this route may not be suitable for all practices given the current economic climate. Moreover, for those practices that have recently converted from NHS to private, they may not want to increase treatment prices so soon after conversion, instead looking to grow turnover in other ways.

Get an up-to-date valuation to help realise the potential in your practice

An expert practice valuation can highlight the areas you need to act on to realise the profit in your practice and get the best price when the time comes to selling. Valuing helps you make a more informed decision of when to sell and can helps set realistic expectations for what your practice may be worth, the likely buyer type and any post-sale obligations you may face.

Book a valuation here or contact us to have a confidential chat about your dental practice.

The post 5 Things to do NOW to Mitigate the Rising Costs of Running a Dental Practice  appeared first on Henry Schein Dental Practice Sales.

Ultimately whether surrendering your NHS contract will increase the value of your dental practice will depend on numerous factors unique to your practice.

NHS goodwill Vs private goodwill

NHS goodwill has traditionally held a much higher value than private goodwill, in some cases twice the value. The consistent monthly payment from the NHS provided a security that not many other industries enjoy. This made dental practices a very desirable purchase option for independent dentists and corporates alike.

Post-pandemic, the world changed in many ways and dentistry has certainly experienced its fair share of change. Whilst practices were still receiving regular NHS payments without having to deliver full contract targets, chair time was increasingly being utilised for private treatments, with a clear focus on cosmetic dentistry boosted by a higher level of disposable income.

Subsequently we now find ourselves in a situation where associates are more inclined to deliver private dentistry. UDA remuneration rates have been driven up (making NHS dentistry less profitable) and many practices face large clawbacks. Hence why you may be considering surrendering your NHS contract.

Practice valuations are driven by profitability metrics. If you hand back your NHS contract you need to have a plan in place to quickly replace that profit.

4 important factors to consider before surrendering your NHS contract:

1. Your current UDA rate

If you have a £28 UDA rate your NHS contract will deliver less profit than a practice with a £35 per UDA rate and so you may find it easier to replace that profit through conversion of NHS patients to a dental plan or through fee-per-item treatments.

2. Remuneration rate paid to Associates

If you have a £35 UDA rate, paying your Associate £12 per UDA of that income is costing you 35% to deliver. If you convert to private, chances are you will be remunerating your Associates at 45-50% meaning you will have to deliver a higher level of turnover just to match the same profit level due to the clinical costs being higher.

3. Private dentistry costs

Private practices generally entail higher costs in terms of laboratory and material spend, meaning that a like-for-like replacement of NHS turnover to private turnover might not always provide a like-for-like profitability.

4. The look and feel of your practice

Many private practices are embracing high end fit outs, with bespoke branding and an enhanced patient journey. You would need to think about how your practice would compare to other practices in the locality to ensure that you retain your patients once you convert them to private patients.

In summary…

Clearly there is no one-size fits all, however we are seeing many owners successfully surrender their NHS contracts while still protecting the value of their practice.

It may be that a gradual reduction of the contract value is the most sensible option, taking away some of the stress of NHS delivery while still maintaining a smaller stable income into the practice. Mixed practices still prove most popular for sale – buyers still value NHS contracts and the security they bring as long as they are considered to be sustainable.

What’s next?

Ultimately the decision on the future of your contract shouldn’t be taken lightly. Seeking advice from an experienced broker is the best course of action, as they can weigh up the nuances of your practice and hypothetically model what would happen to your practice value with a rebased or surrendered contract.

To speak to one of our experts, contact us or book a valuation to chat through your options.

The post Should I surrender my NHS contract? appeared first on Henry Schein Dental Practice Sales.