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HS Financial Services - The MediEstates Mid-year Review
The MediEstates Mid-year Review

THE MEDIESTATES MID-YEAR REVIEW 

 

The year so far has shown plenty of positive trends in the dental market. Lorraine Hunt, Practice Transitions Supervisor, reveals why the future looks so promising for both buyers and sellers of dental practices.

 

The activity, we at Henry Schein MediEstates have seen on the dental market so far in 2021 demonstrates the sheer determination of our clients to return to normality. As an end to COVID restrictions gradually becomes a reality, this reaction looks set to continue. When we compare this year’s practice valuation and sales activity to those pre-COVID, there seems little doubt the pandemic has influenced dental practitioners across the UK into taking control of their careers. Whether venturing into practice ownership or deciding to exit the business, practitioners are intent on creating a positive future for themselves.

 

Buyer confidence

 

In excess of 30% more new buyer customers are registering with MediEstates every month compared to 2019. Our three buying tiers – Regular, Priority and Premier – have all gained members due to increasing confidence in the market as restrictions ease. Our buyer customers range from entrepreneurial individuals to well-established corporations, meaning sellers of independent practices up to the largest groups can benefit from the growing appeal of practice ownership.

 

Increasing confidence translates into positive action as viewings, offers and agreed sales have all risen. The number of viewings has increased by “double digits” compared to this time last year which might not be too surprising considering the situation in the first half of 2020. However, the increase has contributed to total offers for dental practices exceeding £200m so far in 2021. This value growth not only surpasses 2020 but also improves on 2019. Similarly, compared to the same period in 2019 and 2020, practice sales agreed subject to contract are over four times higher than last year’s figures and 30% higher than those in 2019, while completed sales have maintained absolute consistency throughout. The attraction of strong lending potential from keen investors in dental offices has significantly contributed to this increased activity.

 

If the expectation for the first half of 2021 was cautiousness, our figures conversely reveal an encouraging sense of optimism and determination from buyers ready to thrive post-lockdown.

 

Seller opportunities

 

Practice sellers are also acting now and taking important decisions they were contemplating throughout lockdown. The higher numbers of valuations we saw in 2019 and 2020 reflect a period of consideration. Since January 2021, sellers who have used this time for reflection, have proceeded to move away from practice ownership. For some, the pandemic has acted as a catalyst to focus more on dentistry or preferring to exit the industry entirely. On the other hand, the increase of new buyers registering with MediEstates signifies a great time for budding owners embarking on dental practice ownership journey and for current practice owners increasing their exit options.

 

Countrywide growth

 

Opportunities are not limited to certain areas within the UK or even to practice type. Offers received on practices cover 34 counties across the UK and the Republic of Ireland, and new clients registering with MediEstates span the same wide area. Our numbers also indicate an almost level balance between sales of leasehold and freehold practices, and between NHS, private and mixed practices. Sale prices ranging from £225,000 to £21.5m, with practice turnover ranging from £71,000 to £8m, give a good indication of the variety of dental businesses sold.

 

Market activity in the first half of 2021 has rebounded very well. Adapting to an uncertain future has left practitioners determined to regain control by creating opportunities for themselves. As restrictions ease and excellent lending potential continues, 2021 marks a year for positive action within the dental market.

 

For more information and to find out more about our buying tiers, please visit our website at www.mediestates.co.uk or call us on 01332 609318

 

 

Bio

 

Lorraine Hunt has more than 18 years’ experience within the Dental Sector. She joined MediEstates in 2003 and currently works as the company’s Practice Transitions Supervisor, working closely with the Internal Estates Transitions teams and the Practice Valuation Managers. Lorraine’s expertise ensures buyers and sellers are provided with the wraparound care they need throughout their journeys with MediEstates.

Posted by: Lorraine Hunt 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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