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HS Financial Services - Sell your group of practices with MediEstates
Sell your group of practices with MediEstates

Sell your group of practices with MediEstates

 

Once you have built your business empire, the time will arise when you need to plan your exit strategy and sell your Group for a deal structured on your terms with the right price.

We have collected a number of success stories where multi-site practice owners have sold their Group for Multi-million pound deals to both corporate buyers and multi-site operators, with interest from Private Equity looking for an entry point into the UK dental market.

Whilst planning this exit strategy, we will continue to grow the existing portfolio ensure the Group EBITDA is at its maximum level when the deal is completed.

 

 

Large Devon group of 4 practices – sold to a corporate buyer

 

The two partners approached MediEstates after making the decision together that the timing was right to dispose of their group of four mixed dental practices in which each had its own NHS contract and a combined 22 surgeries across the group. Given the buoyancy of the dental market and in particular large demand from multi-site owners and corporate buyers we were able to achieve an agreed sale price of £5,000,000, which was 6.4% above market valuation and a multiple of EBITDA of x8.25. Following acceptance of the offer from the transaction was completed in just under four and a half months.

An excellent result for the two group owners for whom passing the group to the right buyer was just as important as the deal price that was agreed.  Although the two partners were both in agreement that the timing was right to sell, they each had very different individual requirements post sale that MediEstates were able to build into the deal structure.

 

Group details are:

Location – Devonshire

Turnover - £3,808,098

Computerized – Yes, SOE

Number of sites – 4

Number of surgeries – 22

Type – Mixed

Property – Leasehold

Sale Price - £5,000,000

 

NHS Group in Lincolnshire, located over 2 sites – sold to an independent buyer– achieving nearly 10% more than the asking price

 

This 2 site business is predominantly an NHS group with an income of around £868,000 per annum, generated over two sites both of which were located in market towns in Lincolnshire just 15 minutes apart. The practices are fully computerized, and freeholds are owned by the Principal Dentists. Asking price for the group was £1,4000,000 and after careful consideration of all interest received and offers submitted the eventual sale price achieved was £1,525,000, substantially higher than the proposed asking price. To the delight of the practice partners the practice transition went smoothly and they are enjoying the use of the time in other areas now that their work responsibilities have been reduced significantly.

 

Location – Lincolnshire

Turnover - £867,856

Computerized – Yes (Software of Excellence)

Sites – 2

Surgeries – 6

Type – NHS

Property – Freehold

Asking price - £1,400,00

Sale Price - £1,525,000

 

 

 

 

Dental Group in Avon and Gloucestershire, located over 3 sites – sold to a corporate buyer

 

Group of three dental practices located in the South West had a combined total of 12 surgeries. All practices are full computerized using SOE practice management system and generate £2,700,000 of income each year. The valuation of this group of three practices was £5,264,602 and despite the challenges that came in 2020 we were able to achieve an agreed sale price of £5,000,000 This offer was one of many that were received during a hive of competitive marketing activity which was swiftly managed through a marketing period of just two months. An excellent result for the owners who can enjoy continuing part time clinically without the challenges of practice group management.

 

Group details are:

Location –Avon and Gloucestershire

Turnover - £2,700,000

Computerized – Yes, SOE

Number of Sites – 3

Number of surgeries – 12

Type – Predominately NHS

Property – Leasehold

Sale price - £5,000,000

 

 

Dual Site in Surrey, located over 2 sites – sold to a corporate buyer

 

This dual site had 8 surgeries combined over 2 practices and mainly offers private dental treatments. Group turnover was just over £2,000,000 which generated a valuation of just over £5,000,000. Price achieved on completion was £5,000,000, just under x8 multiple of EBITDA and the property was offered on a leasehold basis. The practice is fully computerized using SOE practice management software. Owners were delighted with the result of the sale and are looking forward to fulfilling their retirement plans, it was very important to the exiting Principal Dentist that he regain some of his time to spend with his family and children whilst still maintaining some of his clinical duties by working after completion on a part time basis, which was given consideration throughout the marketing period and whilst the deal structure negotiations were completed.

 

Group details are:

Location – Surrey

Turnover - £2,103,410

Computerized – Yes, SOE

Sites – 2

Surgeries – 8

Type – Predominately private

Property – Leasehold

Sale Price – £5,000,000

 

 

It is now more imperative than ever before that owners of group practices like the ones above consider what steps need to be taken to maximise their profit in order to make substantial gains to their EBITDA and ultimately the value of their business. MediEstates are working closely with owners of group practices on this whether they are moving forward with a sale now or just planning ahead for an eventual sale in years to come.

 

If you are looking to acquire another practice, or several practices, please reach out to the MediEstates team who will be delighted to help you secure the best practice for your group. Equally, if you are a small group looking to secure the best exit, we work with a multitude of buyers including all the corporates present in the UK market, as well as a number of Private Equity investors, looking to enter the UK market, through the Henry Schein worldwide connections.

 

If you are interested in finding out more, please contact the MediEstates on 01332 321693, info@mediestates.co.uk or www.mediholdings.co.uk

 

Posted by: Dean Barker 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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