How to Successfully Purchase a Dental Practice -  Interview with Martyn Bradshaw, Director PFM Dental

‘If practice ownership is for you and you can find the right practice then there is no reason to delay’  Brad and his guest Martyn Bradshaw from PFM Dental discuss in depth what happens all the way from when someone first thinks about purchasing a dental practice through the purchase process and onwards after the sale.  If you are potentially looking at buying a dental practice then this podcast episode is a must. The discussion is packed full of information about not only what you need to know but also what you should know to make the purchase process successful and to ensure you are purchasing a viable practice based on what you want to do with it.  Martyn shares a comprehensive insight into how valuations are made along with the viability calculations and much more, you will want to listen to this in-depth interview more than once.     KEY TAKEAWAYS  The buyers need to understand what they want to buy  When we look at potential purchasers we are interested in their financial profile  If someone’s profile indicates they are asset focused then this will be seen as a positive.  Other than a deposit you don’t need to have prepared anything else.  It’s about finding the right practice and there are 2 very different types of practice.  Principle led practice - Where a principle is actively involved in working in the practice, usually alongside an associate. they between them generate the income.  Associate led - In this scenario, if there are 2 associates working in the business and an owner, there is the additional cost of the second associate.  The choices for bank lending are extensive and the rates purchasers are able to achieve are very low.  The Enterprise finance scheme set up by the Government supports purchasers with a lack of security. The buyer does have to offer everything they can but if the bank feel the practice is financially viable they can offer the scheme. It does mean you pay an extra 2% premium but can be a useful short-term solution.  In reality, the majority of NHS dentists are sole traders.  An NHS contract must be held by an individual and stipulates the transfer must be to another individual so we transfer NHS contracts using the partnership route.  In private practice, there is far more choice and not the same restrictions on NHS contracts.  People buying private practices usually incorporate before the purchase because this allows them to finance through the limited company.  No buyer should go in with a preconceived idea it’s about putting everything on the table and looking at it to find the best solution. it may not be a result that the buyer has considered but could offer a better solution.  The minimum process time is 5 months not including the legal work and assuming you complete and return all documentation on the same day.    BEST MOMENTS  ‘There can be a lack of understanding about what a principle does’  ‘Often it can be the property that can hold up the process’  ‘Profit dentistry is rife at the moment’     VALUABLE RESOURCES  PFM Dental website     ABOUT THE HOST  Brad believes that everyone at any level should be focused on achieving multiple sources of income to create diversity and balance in life. He feels passionate about helping dentists work towards freedom by building wealth in different areas and helping to develop a mindset to improve one’s ability to handle the stresses of clinical life.      Still a practising dentist, Brad has implemented strategies to create a practice to allow him to carry out the dentistry he wants whilst continually expanding with loyal staff and patients. These strategies can be adapted to any dentist, whether you are an associate or the practice owner, to help bring back your passion for dentistry.     In addition to running a successful private dental practice, he has grown  several other dental businesses and as an investor is growing wealth outside of dentistry to help protect his legacy for his growing family.     He is chair of the Horsforth Town Team, dedicated to the promotion and development  of business in his local area in North Leeds, UK.     Due to his track record and down to earth advice, he has become sought after  as a mentor and spends part of his time dedicated to mentoring dental professionals about business, mindset and personal development.     CONTACT METHOD  Brad Thornton Instagram  Brad Thornton LinkedIn  Brad Thornton Facebook