Denplan launches new partnership scheme
Simon Hughes, Director and Head of Medical at Christie + Co looks at the new partnership scheme launched by Denplan and the implications for the dental profession.
A new dental partnership funding programme has recently been launched by Denplan that will offer support and investment to practices in return for a 50% share of the business. The partnership scheme is intended to help overcome the obstacles related to a new associate taking over a practice, and is aimed at those looking to retire in the short to medium-term.
The scheme involves Denplan purchasing 50% of the practice based upon a multiple of its profit. According to Denplan, this will provide vital investment into the practice, while the owner retains their autonomy to run and manage the surgery as they wish. Then, when the dentist is ready to retire, they will be able to sell the remaining portion to a carefully selected practitioner.
It’s interesting to see the announcement from Denplan, which mirrors those seen in other sectors, especially Pharmacy. For Principals thinking of selling a share of their practice, it certainly delivers an extra element of choice, although in a market that is awash with cash and banks that are willing to lend, our view is that dental associates looking to purchase a practice will generally want to acquire a 100% holding.
The scheme is of course still in its infancy, with only five practices being entered into partnership this year. It therefore remains to be seen how the sector will react to these changes, if at all. However, if successful, this new initiative looks set to provide a further layer of complexity to the already multi-faceted dental practice sales market.
To discuss how Christie + Co might help you achieve your future plans please contact Simon Hughes on 020 7227 0749