Becoming a first-time dental practice owner is an exciting and significant step in your career. However, the legal and financial landscape can be complex. At Jacobs Legal, we’ve guided many dentists through this process, and we’re here to help you understand the key steps in plain English.
1. Secure Your Funding First
Before you start looking at practices, speak to a specialist dental finance broker. They understand the unique requirements of the sector and can help you secure a commercial mortgage or a bank loan. Knowing your budget from the start will save you a great deal of time and allow you to focus on suitable opportunities. It is also vital that you speak with your accountant who will be best placed to advise as to whether the acquisition is financially viable and assist you with preparing a business plan, which the lender will require from you.
2. Assembling Your Dream Team
You’ll need a team of trusted professionals. This should include:
- A Specialist Solicitor: A legal expert who understands dental-specific issues, such as NHS contract transfers and CQC regulations.
- A Specialist Accountant: An accountant familiar with dental practice finances and valuations.
- A Financial Broker: To help with your funding.
- A Specialist Dental Lender: Not all of the Banks deal with the dental sector. It is important that you work with a lender that does as moving forward, this will be essential.
3. The Importance of Due Diligence
This is the most crucial part of the process. Your solicitor will conduct a thorough investigation into the practice you want to buy. This includes:
- Financial Records: Scrutinising the last three years of accounts.
- Legal & Regulatory Compliance: Checking for any ongoing disputes, CQC compliance issues, or other legal liabilities.
- Property Matters: Reviewing the lease agreement or freehold title.
- Staff & Contracts: Understanding the employment contracts and TUPE obligations.
Don’t skip this step! It’s what protects you from hidden problems and ensures you know exactly what you’re buying.
4. Making a Fair Offer
Once due diligence is complete, your legal team will be able to advise you of any issues that could arise with the practice that you are intending to acquire and if necessary, assist with the negotiation of a final price and draft the Heads of Terms. This is a non-binding document that outlines the key points of the deal, from the price to the timeline.
5. Exchange & Completion
The final stages involve signing the legal contracts and transferring the funds. Your solicitor will handle this, ensuring all conditions of the sale are met, including the transfer of the NHS contract and CQC registration, so that you can take ownership of your new practice with confidence.
At Jacobs Legal, we pride ourselves on making this journey as smooth as possible. If you’re considering buying your first practice, get in touch with us today for a no-obligation chat.