Who is the perfect buyer for my practice?
It’s important that you take an educated decision
With so much pressure on the Scottish dental profession it is not surprising to see that many practice Principals are considering their future and choosing to exit ownership at this point. At present, despite the ongoing uncertainty at the time of writing, goodwill values are remaining at an all-time high level. We have recent market intelligence of numerous transactions completing at 10- 15 per cent above valuation in the Central Belt of Scotland.
As the only accountant focusing 100 per cent on the Scottish dental profession, we have more than 100 practice sale transactions experience and expect to complete on 10 in Q1 2022. This places us well to control the process and ensure that the optimal result is achieved for our clients. As a result of our market awareness, we have recently been invited to present on behalf of NES on this subject and the recording is available on their portal currently.
Despite the column inches dominated by the corporate groups’ PR teams at present, we are seeing a 70/30 split of sales in favour of the independent vs corporate buyers. Like everything in life there are pros and cons involved with either type of buyer or it’s important that if you are looking to ‘cash in’ on your life’s work that you take an educated decision on which type of buyer would be most appropriate for you.
You need to look beyond the headline offer terms and lean on your advisers to ensure you fully understand the conditionality involved in any corporate deal. This can introduce the risk of an up to a 30 per cent adverse difference in the price offered if the retention period is not completed adequately.
With the two main Scottish Corporates of Clyde Munro and the Real Good Dental Company still showing real appetite for acquisitions, alongside Portman and Dentex gaining a foothold, we are now seeing a competitive landscape emerge between the corporates for market share. Given that they would be considered ‘sophisticated buyers’ you should ensure that you choose experienced and commercially focussed professional advisers for your own team.
If you would like any free advice to consider your options, then we would be delighted to help as always. Feel free to give us a call or drop me a note.
Victoria Forbes, Director, Dental Accountants Scotland victoria@dentalaccountantsscotland.co.uk
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