And more!

Watch the Anatomy of a Sale Transaction webinar here

The live session was delivered by Ray Goodman Partner at Acuity Law and Manjit Jutla, a mergers and acquisitions expert at Henry Schein Dental Practice Sales, was recorded on 13 May 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: Anatomy of a Sale Transaction appeared first on Henry Schein Dental Practice Sales.

Popular Practice Types: Private and Mixed Practices
Private practices, or those mixed with a small NHS component, are increasingly popular among buyers. The appeal lies in the greater scope for growth and development that these practices offer. Buyers are attracted to the potential for expanding services, increasing patient numbers, and enhancing profitability. Unlike fully NHS-dependent practices, private and mixed practices provide more flexibility and higher revenue potential, making them the preferred choice for investment.

Room for Expansion: A Key Attraction
Another critical factor in buyer decisions is the potential for expansion. Practices that have the physical space and capacity to grow are highly sought after. This includes additional rooms for more treatment chairs, potential for extended hours, or even the addition of new services. Buyers are keen to invest in practices where they can envision substantial growth and increased revenue streams.

Capitation Plans: A Stable Revenue Source
Capitation plans are another attractive feature for dental practice buyers. These plans provide a steady and predictable income, reducing the financial risks associated with fluctuating patient visits and treatment costs. Practices with established capitation plans are particularly appealing as they offer a solid revenue base and financial stability, which is a crucial consideration for both individual and group buyers.

Group Buyers: Structured Offers and Risk Mitigation
Group buyers are a significant force in the dental practice market, often looking to tie in for three to five years. Their offers are typically structured with deferred elements, commonly in a 70/30 split. This means that 70% of the purchase price is paid upfront, while the remaining 30% is deferred and tied to performance targets or other conditions. This structure aligns interests and mitigates risks, ensuring that the practice continues to perform well post-sale.

Practices with multiple partners are particularly attractive to group buyers. Having several partners helps spread the responsibility and support for the practice after the sale, reducing the risk associated with the transition period. This collaborative approach ensures that the practice maintains stability and continues to thrive, making it a less risky investment.

Location Preferences: Urban, Suburban, and Rural Areas
Location plays a crucial role in the desirability of a dental practice. Affluent urban and suburban areas, especially those close to major cities, are the most popular. These locations offer a higher patient base, better recruitment opportunities, and greater visibility. Practices in these areas can command higher prices and attract more interest from buyers.

Conversely, rural areas are less popular and often take longer to find buyers. The difficulty in recruiting staff in these regions mirrors the challenges in selling practices. However, there is a buyer for every practice, and with the right marketing and positioning, even rural dental practices can find suitable buyers.

Ground Floor Presence: Accessibility and Visibility
Historically, many dental practices were located on the first floor of buildings. However, ground floor practices are now far more sought after. The reasons are twofold: accessibility and visibility. Ground floor practices are easier for all patients to access, including those with mobility issues, and they offer better shop window frontage, which can attract passing trade. This enhanced visibility and accessibility make ground floor locations a premium feature in the eyes of buyers.

Key Takeaways
Understanding these buyer trends is crucial for both sellers and prospective buyers in the dental practice market.

Most attractive features:

• Private or mixed practices
• Room for growth
• Stable revenue sources
• Prime locations

Beyond this, we have seen that group buyers favour structured deals and practices with multiple partners to ensure a smooth transition. While urban and suburban locations are preferred, with the right strategy, practices in all areas can find interested buyers.

Stay informed as the market continues to evolve, so that you can make better, more informed decisions for your business.

To register as a dental buyer, click here
To book a dental practice valuation, click here

The post Buyer Trends in Dentistry – understanding the current market dynamics appeared first on Henry Schein Dental Practice Sales.

Many dentists are grappling with the growing demands for high-quality, cost-effective care, coupled with the administrative and financial challenges of practice ownership. Consequently, there is a notable rise in practice owners exploring their options. The enduring impact of the cost of living and dental recruitment crisis further intensify the strain on practices, making the prospect of selling and reducing responsibilities even more attractive.

The decision to sell your dental practice is often an emotionally challenging one. Building a successful practice entails years of hard work and dedication, making it difficult to part ways with something into which you’ve invested considerable time and effort. Nevertheless, if you’ve determined that selling is the right move for you, there are key considerations when formulating an exit strategy.

Valuing Your Practice Accurately

Having an accurate valuation is essential for a successful sale. Factors such as location, patient base, profitability, equipment and technology, growth projections, and local competition contribute to the complexity of valuations. Henry Schein MediEstates offers a comprehensive valuation service, considering various factors, financial forecasts, and profitability optimisation advice.

Choosing the Optimal Deal Structure

The structure of the sale can vary based on whether you prefer a lump sum immediately or are open to extended payments with appropriate retentions and guarantees in a post-sale agreement. Options include continued involvement post-sale, serving as a mentor or through contractual arrangements as an associate. Alternatively, you might favour a straightforward structure for a clean break from the practice.

Identifying the Right Buyer

The type of buyer your business attracts depends on its size and annual turnover. Smaller practices may attract individual buyers seeking an affordable entry, while larger practices may draw the interest of corporate entities with plans for expansion. Sellers must be aware of the implications associated with each buyer type, sale structure, and post-sale agreement.

Plan Ahead for a Smooth Transition

Depending on the buyer type, ownership transfer can take up to 12 months due to legal complexities. Commencing exit strategy planning before you’re ready to sell can help eliminate unwanted delays.

In conclusion, selling your dental practice is a major decision, but with a well-thought-out strategy, it can pave the way for future success. By developing an exit plan, finding the right buyer, accurately valuing your practice, and understanding legal obligations, you can ensure a smooth transition. The team at Henry Schein MediEstates is ready to discuss your needs and provide expertise to help you decide on the best options for your future.

Why not get in touch today to get a valuation for your dental practice? Contact our team today.

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