Seven Steps to Buying a Dental Practice: plan to get the best return.

Dental professionals considering setting up, owning and running their own dental business should of taken advantage of the expertise of several figures who have a wealth of knowledge on the process to share, from a banking, finance and legal perspective.

A seminar entitled ‘Seven Steps to Buying a Dental Practice’ took place on Thursday 18th February 2010, at The National Motorcycle Museum, Birmingham. A light buffet was served from 6pm until 6.45, and then the talk began.

Paul Mendlesohn opened the seminar with a brief summary of the current climate, and why now is a good time to plan for a future business purchase. Paul is currently the chairman and Chief Executive of CODE, having previously established Whitecross Dental Care.

As a practice owner, he has a great deal of knowledge and experience in dealing with the challenges presented, such as new regulations, team management and developing new services. In response, he has introduced innovative management solutions for practice owners, including the ‘Management Modules’ and ‘Clinical Governance Made Simple’.

Steve Pratt is the Regional Head of Healthcare banking in the South and West for Lloyds TSB Plc. In his address, Steve asked: ‘Is your business plan workable?’ and he covered:

• Credit appetite in the Dental Sector
• Incorporation – Bank security requirements
• Managing your risk – Interest hedging
• Making banking simple – Reducing your costs

Steve has an in-depth knowledge of dental practices and the requirements of banks.

The financial aspects of setting up a new practice were then further explored by Thomas Dickson, owner of Essential Money, a specialist provider of independent financial advice for dentists, which is able to offer specialist knowledge on all financial issues for dental businesses.

In his section of the seminar, Thomas covered various elements in relation to the financing of a new dental practice. His talk included:

• What you need to know in order to prepare a finance proposal
• How to select and negotiate with the right lender
• How to make sure the relevant insurances are in place
• Some of the common mistakes made and how to avoid the expense of making them yourself

Having provided expert guidance on the financial aspects of setting up and running a dental business, there was then an address on the related legal issues.

Jonathan Cobbold is a partner at Gross & Co, a commercial solicitors’ practice with offices located in both London and Suffolk. An expert in assisting with all legal aspects of setting up and running a dental practice, Jonathan delivered a short talk which covered the following:

• Setting up a squat or an existing practice
• Heads of terms
• Non-competition restrictions
• Warranty issues
• Employment issues

At the conclusion of the seminar, the delegates had the opportunity to discuss specific issues with the speakers, whilst enjoying some refreshments.

This seminar aimed to provide delegates with an understanding of the steps required to ensure the best returns are achieved. The event provided Continuing Professional Development points, and certificates were provided free to all attendees.