BUYING A DENTAL PRACTICE
Are you considering the exciting journey of buying a dental practice? At PKPI Chartered Accountants, we understand the thrill and challenges involved in this significant professional step. Here's how we can assist you in making your dream a reality:
Buying a dental practice involves acquiring a business, not just real estate. It's a crucial decision that shapes the next phase of your professional life. At PKPI, we guide you through the intricate process, ensuring every aspect is meticulously examined.
Understanding the Process
Setting Your Goals
Before diving into the exciting journey of acquiring a dental practice, let's start by defining your goals. Think about where you want your practice to be located, the kind of patients you aim to serve, the size of the practice, and any specializations you're passionate about. Knowing your goals will be your guiding light throughout this process.
Getting Your Finances Ready
Being financially prepared is key. Take a good look at your financial situation. Consider all possible expenses like the buying price, equipment costs, renovations, and the working capital you'll need. It's a great idea to chat with financial experts for some guidance here.
Exploring the Market and Being Thorough
Now, let's dive into some research! Check out the local dental market, see who your competitors are, understand the patient base, and find out what services are in demand. Make sure you're thorough and check the practice's finances, patient records, and all the legal stuff. It's like detective work!
Navigating the Legal Waters
Legal and regulatory things can be a bit tricky, but don't worry, we've got your back. Get in touch with legal advisors who know their stuff when it comes to dental practice acquisitions. Make sure everything from healthcare regulations to licenses and insurance is in order.
Making the Best Deal
Time to put those negotiation skills to work! Understanding how valuable the practice is, the market trends, and its potential for growth will help you strike a fair deal on the purchase price and get some sweet terms.
Planning for a Smooth Transition
Change can be daunting, but with a good plan in place, transitions can be smooth sailing. Create a comprehensive transition plan that includes things like bringing in new staff, keeping patients in the loop, making operational changes, and ensuring the quality of service stays top-notch. Happy patients mean loyal patients!
The PKPI Chartered Accountants Advantage
At PKPI Chartered Accountants, we champion the independent dentist. We believe in empowering dentists to own and manage their own practices, ensuring they thrive in the competitive landscape.
Buyers Advisory Service
To address these challenges, we proudly introduce our Buyers Advisory Service, tailored exclusively for buyers. This service complements our Dental Practice Start Up Service, which is designed for those embarking on the journey of practice ownership.
What We Offer
Our Buyers Advisory Service is a hands-on program meticulously designed to guide you through every step of the buying process. We leverage our extensive experience as dental practice owners to help you identify the perfect practice at the right price.
Services Tailored for You
Our experienced team will assess the financial health of the practice, examining Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA).
Due Diligence Support
We conduct thorough due diligence, covering legal and financial considerations. From treatment lists to accounts, we leave no stone unturned.
PKPI helps you navigate the financing process, ensuring you have the necessary funds to secure your dream practice.
Specialist Dental Solicitors
Our network includes professional dental solicitors who handle legal aspects, ensuring a smooth transaction.
Business Valuation Guidance
We guide you in obtaining an accurate valuation, crucial for making informed purchase decisions.
Team Retention Strategy:
We emphasize the importance of retaining the existing dental team, considering them as valuable assets to the business.
PKPI provides insights into the practice's marketing strategies, helping you understand its online presence and potential for growth.
1.How Do You Value A Dental Practice.
Examining the last three years' financial records alongside current management accounts unveils income trends—both upward and downward. Surgeon utilization rates and expansion prospects also significantly impact value and market appeal.
2. Why Should I Check The CQC Inspection Report.
It's crucial during due diligence after your offer's accepted. Take a close look at equipment, cabinetry, compressors, and flooring to avoid unexpected costs from day one.
Also, inquire about the last CQC inspection and DDA compliance dates. Ensuring that any flagged issues in the report are adequately addressed is key. Your solicitor can assist in verifying equipment certifications and staff indemnity insurance. These steps help ensure a smooth transition and avoid surprises down the line.
3.Do I Need To Have All My Certificates Ready And Available.
During the due diligence process, you will be asked to provide and show your certificates such as the GDC registration.
4.Do I Need To Ask For An Inventory.
Absolutely! While it might seem tedious, requesting an inventory is essential. It provides a clear picture of what's included in the practice sale and what's being taken away. This step prevents future arguments or disputes during the sales process, ensuring a smoother transition for everyone involved.