Associates snap up practices following lockdown
Fall in private pay has accelerated many buyers’ plans, says property adviser
Since the beginning of the UK lockdown, specialist business property adviser, Christie & Co, has witnessed increased buyer appetite from private Associates who have endured pay cuts in recent months and, as a result, are seeking to secure themselves an income by buying their first dental practice.
Dental practices in the UK reopened from 8 June and since then the level of activity in the dental market has continued to increase, with Christie & Co securing a significant number of new instructions, witnessing an uptick in new deals agreed and, in July, receiving its highest month for viewings year-to-date.
The company also reported, in its first Buyer Registration Index, a 59 per cent increase in buyer registration figures in the dental sector since lockdown measures began to ease in the UK, which illustrates a desire to seek out new business opportunities once again.
Feeding this increased appetite, the company has recently brought to market two private dental practices in south of the border. Both are upmarket clinics situated in prime Cheshire town centre locations, providing specialist and aesthetic treatments. The practices were fitted to an exceptional standard meaning minimal capital expenditure for the purchasers.
Jonathan Watson, Director of Medical at Christie & Co, commented: “Whilst it has been well-documented that some investor-backed corporates have recently paused their acquisition trail, appetite from the independent market remains very high – a great example of this is the two-chair mixed practice in Cheshire that we brought to market in July, which received nine viewing requests in the first two days of marketing.
“We’re also seeing that the fall in private Associate pay has accelerated many buyers’ plans to purchase a practice. In the last year, approximately 80 per cent of Christie & Co practice sales were acquired by independent operators and we expect this trend to continue throughout 2020 and beyond.
“We are delighted to bring two more high quality private clinics to the market in Cheshire which will hopefully begin to fulfil the demand from Associates that we are experiencing at present. Both practices have been owner-operated for many years and have developed exceptional reputations in the local community. There is now an opportunity for purchasers to take on the goodwill that has been built up over the years and drive income to the next level.”