What to do when acquiring a dental practice
Thomas Coates explains all the factors you must consider when acquiring a dental practice.
I’m often approached by dentists wanting to acquire a dental practice. Invariably this is a not a decision that has been made on a whim. It follows a lengthy period of deliberation, consultation with family and friends, financial calculations. And finally, the decision to take the plunge and place an offer on the practice of their dreams. It's usually the case that my first contact with aspiring purchasers arises where an offer has been accepted. They then need to find a solicitor to represent them. Generally, most people are completely in the dark as to what happens next and what you as the buyer should be doing to progress matters.
The need to prepare
Upon placing an offer and having it accepted, the seller’s solicitor and the buyer’s solicitor will need to be put in contact with each other so they can begin progressing the legal aspects. At the same time, you should be looking to ensure that you have funding in place from a lender to support your purchase. Do keep in mind that there are 14 different banks each with their own specialist healthcare lending teams. Do ensure that you search the market for the most competitive deal. Don’t just go with the first bank that you speak to. If you don’t have the time to speak to all 14 banks, speak to a specialist dental finance broker who will scour the market for you. They only charge you if ultimately you take a product they have found for you.
Due diligence enquiries
Your solicitor should at the very outset raise what are known as due diligence enquiries. What this entails is them sending to...