Scottish market update – Autumn 2020
Over the last few years, the Scottish market has seen a growing number of individual buyers, small groups, as well as corporate, and private equity groups looking to expand their presence. This has led to several attractive ownership models arising, giving sellers a variety of exit options. Some of the most prevalent ones are:
- A proportion of the sale price (usually 10 - 40%) being retained over several years (usually 2 – 5 years) and released incrementally on achievement of agreed targets
- Share options where the practice is sold, and a percentage of the sale price is converted into shares in the holding company
- An opportunity to share in the dental practice continuing to grow post sale, the so called ‘upside model’
- Giving associates a share of ownership and profit so they are involved in the risk and reward of practice ownership
These are some of the existing and new ownership models arising as the demand for dental practices grows.
With the increase of selling options, practice owners have an opportunity to plan their retirement or exit from clinical work over a longer period, reducing the practice ownership and success risk burden, and sharing the responsibilities with the new owner. This transition process could be upwards of 5 years, so discussing the options early is important.
To be able to plan, it is important to know the value of your (usually) most valuable asset, your dental practice. Our clients have their valuations updated yearly to ensure they are prepared and understand the steps they need to take to make the valuation a number they aspire to achieve. We will work with you to ensure you benefit from the insights and valuations we carry out across the country, using benchmarking assembled over many years forming the basis of our evidence-based valuations.
Don’t settle for a valuation directly from the buyer as this has not been ‘market’ tested and you may receive less than your practice is potentially worth.
To enquire or book your valuation, please complete the form below.