The group is made up of two high quality dental practices including a five surgery practice and a four surgery practice. The sale attracted 19 interested parties, from corporate to expanding multiple operators, and it sold off an asking price of £2.1m for the leasehold interest.
Alan McClure and his co-owner Chris Stafford decided to sell to step back from practice ownership. Alan comments, “Christie & Co’s approach wasn’t aggressive, they knew the market and Paul kept the deal going when different parties changed their outlook.”
One of the key pieces of advice Alan shared for prospective sellers was; “Don't try and save the fee and do yourself, you'll get a lesser price and possibly lose the sale.”
Paul Graham, Associate Director at Christie & Co who handled the sale comments, “During the course of a year many thousands of people sell their businesses with the great majority using a specialist business agent like Christie & Co. But some “go it alone”, and while a proportion of those which succeed in finding a buyer might console themselves with the thought that they saved the agents’ fee, the crucial questions arise; did they achieve the best price? Would someone else have paid them more? And might an alternative purchaser actually have been a better fit for their business?
“Aside of price, going it alone means that an owner will be lacking the comparative insight of knowing whether they have managed to negotiate the most preferential terms in the share purchase or asset purchase agreement. When it comes to selling a business, particularly in respect of ‘value’, you simply cannot judge the worth of a dental practice by comparing it with one up the road. No two practices are alike.
“Expertise and services, of course, cost money and there lies the justification for specialist agents’ fees. Selling privately may be cheaper. But is it worth the risk, the time involved and the danger of not achieving full market value? We are convinced that it is not, and fortunately for Alan and Chris, neither did they.”