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HS Financial Services - Buying a Dental Practice? Here’s How to Write a Business Plan
Buying a Dental Practice? Here’s How to Write a Business Plan

Buying a Dental Practice? Here’s How to Write a Business Plan

 

So, you've decided to purchase a dental practice? Congratulations! This is an exciting venture that can be very rewarding. However, it's important to remember that buying a dental practice is not like buying any other business - there are unique considerations that must be taken into account.

 

Your business plan is the document that will outline your goals for the practice, how you intend to achieve those goals, and what financial investment will be required. It should also include a market analysis to ensure there is a demand for the services you intend to provide.

 

Creating a business plan can seem like a daunting task, but it doesn't have to be!


In this blog post, we will discuss how to write a business plan when buying a dental practice, and the key areas you need to consider such as finance and investment. Let's get started!


1. Start with an executive summary

 

This is a brief overview of your business plan that should include a snapshot of all the essential information that lenders require before deciding on whether or not to lend to you. As an introduction to your business plan this pivotal document needs to outline what services you will be providing, what funding is required, and a plan for repaying the loan. It’s important to remember that this summary should be persuasive and convince the reader that your dental practice is a good investment.

 

2. Create the core section of your business plan

 

This section will include more detailed information about the dental practice you are intending to purchase, such as the location, size, number of employees, and any unique selling points. It's also important to provide an overview of your team and their experience in the industry. You should include a description of the services you offer, your target market, and your marketing strategy, as well as an analysis of your competition and how you intend to stand out from them.

 

• Strengths: What will be your company’s strengths when you launch? How do you see this changing in the future?

 

• Weaknesses: If you were the competition, what would you say to prospective customers about where your company’s services are weak or deficient? What are the most important weaknesses to overcome first?

 

• Opportunities: With product improvements or new partnerships, where could your business grow? What new segments could you enter in the future?

 

• Threats: What external factors could put pressure on your business growth or cash flow? Which of these threats can you control? Which ones can’t you control?

 

3. Don't forget the financials

 

All businesses need a solid financial plan, and dental practices are no different. The final part of your business plan should include a financial forecast for the first three years of operation. Banks and private investors will want to be confident that the business they are lending to will be profitable. Make sure to include relevant research and data to support your financial forecast. Be sure to consult with a qualified accountant to ensure that your financials are accurate and realistic.

 

4. Maintaining the business's success

 

It is important to be able to demonstrate to lenders that you can maintain the success of the business, by thinking about how it is ran now and the working environment. Describe your skills and experience, why you would be good for running this business? Will you be bringing in new ways of working? The lenders need to feel comfortable with your plans for the future of the business, they need to understand how much time you can contribute to the working clinically and how this supports the handover of the business from the previous owner.

 

Closing remarks

 

These are just a few tips to get you started writing your dental practice business plan. Remember, this document is vital to the success of your dental practice, so take the time to do it right! Buying a dental practice is a big decision, but with a well-thought-out business plan, it should be a smooth and successful process.


If you are a dental associate looking to purchase your first dental practice, or an experienced dental practice owner looking to expand your portfolio, the team at MediEstates can help. We have a wealth of experience in the dental industry and can provide you with the advice and support you need to make your dream a reality. Contact us today to learn more!

 

Posted by: Kirsty Forbes on

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Business
    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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