Purchasing a dental practice is a big decision that involves more than just checking the numbers. Asking the right questions can help you avoid surprises and ensure the practice is the right fit for you. Here are some key questions to ask when speaking with the seller.
#1 What is the patient base like?
Find out the size and makeup of the patient list. Are they mostly NHS, private, or a mix of both? Ask about the frequency of patient visits, retention rates, and any key demographics that might impact the business.
#2 Why are you selling the practice?
Understanding the seller’s motivations can provide insight into the practice’s history and potential. Are they retiring, moving, or leaving due to financial or operational challenges? Their answer might highlight opportunities or red flags.
#3 What are the practice’s financials?
Review the accounts carefully. Ask for profit and loss statements, balance sheets, tax returns, and any recent financial audits. Understanding revenue streams, overhead costs, and profitability will give you a clearer picture of the practice’s financial health.
#4 What is the condition of the premises?
Inspect the building and equipment. Are there any issues with the premises, such as overdue maintenance or a need for renovations? Check the lease terms if the property is rented—are they favourable, or will you need to renegotiate soon?
#5 What is the state of the equipment?
Dental equipment can be expensive to repair or replace, so it’s important to understand its condition. Ask for maintenance records and details about warranties. If the equipment is outdated, consider the costs of upgrading.
#6 How many staff are employed at the practice?
Ask for details about the staff, including their roles, salaries, and length of service. Are there employment contracts in place? It’s also helpful to understand the team dynamics and whether key staff are likely to stay after the sale.
#7 How is the goodwill of the practice protected?
Goodwill is a significant part of the value of a dental practice. Ask how the practice maintains patient loyalty and whether there are restrictive covenants in place to prevent the seller from setting up a competing practice nearby.
#8 What support will the seller provide?
It’s common for sellers to offer a handover period. Ask whether they are willing to stay on for a transitional period to help you settle in and maintain continuity for patients and staff.
#9 Are there growth opportunities?
Ask about potential ways to expand the business. This might include offering new treatments, extending opening hours, or investing in marketing. Understanding the growth potential can help you plan your future strategy.
If you’re ready to start the journey of buying a dental practice, we’re here to guide you every step of the way.
