HS Financial Services - How buoyant is the dental acquisitions market?
How buoyant is the dental acquisitions market?

How buoyant is the dental acquisitions market?


Following the ups and downs of the last 18 months, it’s understandable that there may be some uncertainty in the minds of dentists surrounding the state of the dental acquisitions market. But how has the market changed during this time and is it currently buoyant? One of the most common questions that brokers are asked by dentists is whether the acquisitions market is healthy, so it’s a good idea to look back on how recent events have shaped the market of today to better understand where we are now.


The post-pandemic market


2019 was a record year for practice acquisitions. However, once Covid broke out in the early months of 2020, this had an instant impact on the market. Practices were unable to open from March to June, and this created a lot of wariness surrounding any potential sales as there was no way to measure real-time business profitability. Plus, there were physical barriers to selling during this time – people were either unable or unwilling to view properties in person, and there was no way of telling how the pandemic would progress and what effect this would have on the dental industry as a whole.


However, the market did begin to recover in June once practices opened their doors again, and since then some interesting trends have emerged in 2021 that are dictating current market performance. For example, for private buyers (as opposed to corporates looking to expand their businesses) properties in more rural areas have become more appealing and are therefore worth more. One factor fuelling this is that many potential patients are moving out of large cities and into these areas now that working from home has become possible. That’s not to mean that city locations aren’t extremely popular, and with interest from both corporate and private buyers, the market is booming across the country. We have seen a 44% increase in buyers registering in 2021 compared to 2019.


Covid has impacted how patients seek care, and as NHS waiting lists grow and more people head towards private dentistry, this too has bolstered the worth of practices that provide private services. Patient demand for cosmetic procedures and more expensive treatments such as dental implants have also increased during this time, enhancing the profitability of practices that provide these modalities. This has also opened up new opportunities that dentists can seize to impact the overall worth of their practice before selling.


The entrepreneur dentist is now increasingly interested in owning multiple dental practices, and building a group on the foundation of patient care and education rather than mere profitability.


Measuring market buoyancy


One way to measure market buoyancy is to see the multiple (share price) that is being applied to practices by brokers during the selling process. This figure is dictated by factors such as size, location, and services offered, but is also driven by demand. For example, say a practice in Norwich has a multiple of 7.5. Interest from multiple buyers would increase the sale price as these buyers would be in competition, which would also increase the multiple. This information is used by brokers when valuing similar practices in the area, dictating the value of practices in the area. With cases such as the above happening on a regular basis, it’s safe to say that the market is extremely resilient right now, and that the current landscape presents a great opportunity for those looking to sell.


Enlist help from the experts


With years of experience behind them and a constant finger to the pulse of the dental acquisitions market across the whole of the UK, the team at MediEstates offers dental practice valuations, dental practice sales and much, much more. Keeping track of the trends and using high-quality comparable data, they help both buyers and sellers to understand the complexities of the market and provide expert impartial advice to all. So, when it’s time to sell your dental practice, you can rely on help from the experts every step of the way.


By Scott Gidman


For more information, contact MediEstates on 01332 609318 or

visit www.mediestates.co.uk




Posted by: Scott Gidman 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:

    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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