28 May 2020 | Dental Practices

Dental Market Update - May 2020

Since the beginning of lockdown, we have seen an array of opinions on topics such as, roadmaps for reopening practices, increased demand from associates looking to buy practices, the appetite from corporate buyers, and a particular hot topic (with some unsolicited views), is what the impact of COVID-19 will have on the value of dental practices. As the only RICS regulated firm dealing with dental practice sales across the UK, we work to the highest professional standards and have a unique insight into the market.

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Don’t leave the sale of your practice to chance.

Engaging a professional agent when selling your practice has never been more important
Ensure you receive regulated, honest advice
Deals done, deals agreed and active buyer requirements

Paul Graham
Head of Dental

T: +44 7739 876 621
E: paul.graham@christie.com

How will the current crisis impact values? And what is the current demand from buyers?

Even pre COVID-19, it was far too often we witnessed sellers deal directly with a buyer, receiving unfavourable and unrealistic conditions, attached to a mediocre offer.

Now mid pandemic, there have been some wild suggestions of practice values plummeting. Unsurprisingly these views have come from buyers with a vested interest in the market, or those with a product to sell which will help the recovery of profit margins again. However, some sense checking is required; should practice owners be concerned take a look at the evidence and decide for yourself.

There is a clear pattern emerging from new buyers/applicants. The graph below demonstrates the level of new registrations on our website at the time lockdown began 23/03, through to w/c 11/5. The uptick in new users further suggests an increase in activity and buyers actively starting to look.

While loss of earnings has impacted existing practice owners, they have been able to draw upon at least a couple of financial support packages. Meanwhile the impact of the current crisis has unquestionably been detrimental to self employed associates, with little (or less) Government support available. Many buyers/associates we are speaking to, are concerned about their future earnings, particularly if practices are enforced to see a reduced number of patients due to the lag time potentially required between patients. These buyers are now looking at purchasing their own practice, evidenced in our spike of new website registrations.

Approximately 80% of Christie & Co practice sales since January 2019 have been to independent purchasers, and we expect this trend to continue.

Paul Graham
Head of Dental

T: +44 7739 876 621
E: paul.graham@christie.com

VALUATION SERVICES

RICS is the Royal Institute of Chartered Surveyors. Christie and Co is the only firm in the UK accredited by
RICS to undertake formal valuations by a team of qualified surveyors. This ensures that the advice you receive is accurate and relevant to the changing market place in 2020 and 2021.

Following the publication of Government guidance relating to the property sector, Christie & Co has re commenced inspections of properties in most of our specialist sectors for valuation purposes.

All inspections will be undertaken according to a comprehensive protocol, to protect our staff and your customers, and will only be undertaken with the express agreement of all parties.

We have the largest national team of chartered surveyors and valuers dedicated to its specialist markets, offering valuations, consultancy, rating, investment, rent reviews, lease renewals, building surveying, planning and dispute resolution advice in the dental sector.

Christopher Vowles
Head of Valuations - Medical

T : 07791 183 966
E: christopher.vowles@christie.com

CHRISTIE FINANCE

Christie Finance specialise in the dental sector and therefore, have relationships with appropriate contacts at many lenders across the UK, providing local expertise with a national reach.

In order to protect the future of your business, you may need quick access to finance. We have an Unsecured Finance division at Christie Finance who may be able to assist in securing the funds you need in the short term.
Our unsecured loans are quick to arrange and can help with:

▪ Cash flow
▪ One-off purchases
▪ Developments/expansion of practices
▪ Fund or reimburse self-assessment or corporation tax liabilities

David Ward
Senior Director - Purchase & refinance
(Midlands)
T: 07815 803 262
E: david.ward@christiefinance.com

Gary Boyce
Director - Purchase & refinance (South)
T: 07974 800 752
E: gary.boyce@christiefinance.com

Jawad Anjum
Director - Purchase & refinance (North)
T: 07791 979 719
E: jawad.anjum@christiefinance.com

Shaun Watts
Head of Unsecured (UK wide)
T: 07526 175 855
E: shaun.watts@christiefinance.com

Craig Dickson
Director
T: 07713 061 621
E: craig.dickson@christiefinance.com