Buying a dental practice: What to expect

Expert guidance to help you buy with confidence

Purchasing a dental practice is an exciting milestone, but it can also feel overwhelming. With the right team and a clear plan, you can navigate the process confidently and avoid common pitfalls. Our advisors are here to guide you every step of the way.

Start with the market

Practices are typically marketed by sellers or specialist agents. Register with reputable dental agents to receive opportunities that match your budget, location, and clinical interests.

Build your advisory team early

Engage with experienced accountants, solicitors, and financial advisors from the outset. Their guidance during practice viewings and negotiations helps ensure you make informed decisions, not rushed ones.

Understand your budget

Review your personal finances and speak to lenders who specialise in dental sector funding. If the practice includes property, involve a surveyor early to assess suitability and cost implications.

Evaluate the Practice’s value

Review the seller’s valuation model and supporting data. Valuations are usually based on turnover, profitability, and the reason for sale. Be sure to assess how realistic and sustainable the financial figures are.

Agree Heads of Terms

Once you're confident in the opportunity, agree preliminary terms (Heads of Terms). These outline the key elements of the deal. Always consult with a solicitor before signing.

Legal structure and due diligence

Understand whether you're buying the assets of the practice or the shares of the business. Your accountant and solicitor will carry out financial and legal due diligence to verify the practice's performance, liabilities, and compliance.

What to expect in the Sale & Purchase Agreement (SPA)

The SPA formalises the agreement and should cover:

• Accurate and up-to-date financial data (e.g. management accounts)
• Patient base information and goodwill value
• Inventory details (excluding damaged or obsolete items)
• Seller warranties and non-compete clauses
• Property terms: freehold/leasehold, planning permissions, repairs
• Equipment ownership and condition
• Employee rights and obligations (TUPE regulations)
• Financing the purchase

When financing the deal, work with lenders who understand healthcare. Your solicitor will review the loan agreements, and your accountant can prepare business plans and financial forecasts to support your funding application.

Plan thoroughly. Proceed confidently.

Buying a dental practice is a significant investment, both financially and professionally. With expert advice, thorough preparation, and careful due diligence, you can set your new practice up for long-term success.

Managing the practice finances

Smarter tools and insights to strengthen your practice.

Embrace Cloud (or Digital) accounting

In today’s digital landscape, cloud-based accounting software offers a more efficient and flexible alternative to traditional methods. You can access real-time financial data from your practice, home, or on the move, using a smartphone, tablet, or desktop.

Bookkeeping & compliance essentials

• Limited companies must file annual accounts with Companies House within nine months of their year-end.
• Sole traders and partnerships must make tax payments twice a year.

Cash flow & cost control

• Monitor day-to-day expenses and identify areas where costs can be trimmed.
• Plan ahead for at least six months, factoring in income patterns, tax payments, and supplier costs.
• Maintain a healthy cash buffer to meet unexpected short-term commitments.

Know your numbers

• Monthly NHS income to monitor practice activity
• Payroll-to-income ratio
• Gross profit percentage
• Return on capital and assets

Take control of your practice finances

Good financial management isn’t just about compliance; it’s about clarity, control, and confidence. By adopting the right systems and working with experienced advisors, you can free up more time to focus on what matters most: your patients and your practice.