How To Keep Quiet When Selling a Dental Practice?

When considering selling a dental practice most Principals will want to keep the sale as confidential as possible.  So how do you market to the widest audience as possible, yet keep the practice sale quiet, so that staff and patients do not find out?

As an agent who has been established since 1990 we are well versed in the dental practice sale process.  The following gives guidance to ensure that you can keep the sale of your practice as quiet as possible.

We fully understand that the sale of your dental practice for most is confidential, and as such will be handled in this way.  From the very start – the valuation can either be on an evening when the practice is closed or during the day under the guise of an insurance review, for example.  We can also undertake the majority of the work collating the information prior to us even visiting the practice meaning that we would reduce the time needed with you when visiting the practice.

It may well be that you have a local dentist, an ex-associate or a busy-body who you want to be excluded from any mailing, discussions when you have your dental practice on the market.  We have systems in place so these people would be logged, to not only be blocked from receiving any information but even when they did enquire no information would be disclosed to them.  At any given time we have a full record of who has received what information.

As an agent, we are also carefully monitoring the behaviours of buyers, and where a buyer has flouted the normal rules, they are blocked from receiving details to ensure that confidentially remains a high priority.

There are a number of ways in which we can market your dental practice.  Where we fully market, only select information (county, turnover, number of surgeries etc) is sent to potential buyers in the first instance so they cannot identify the practice.  Upon them becoming interested then we would provide the more detailed information, and of course keeping a full log of who has received this.  This is to ensure that the practice is marketed confidentially and only the correct information is given at the right time.

However, on occasion, we are asked to market the practice quietly, in which the vendors want us to use our knowledge of buyers for their type of dental practice. We target those looking in the area, and only contact select people.  As we are involved daily in speaking with potential buyers this is something that we can do, albeit it may not provide as many offers or choice of buyers as the full marketing.

In addition, those vendors who have a large practice, with say, over £1,000,000 of turnover may often have us market the practice quietly to Body Corporates, mini Corporates and possible a few individuals.  Due to the size and value of the practice, it is often unlikely that the majority of people would be able to finance the practice, so there is no need to market the dental practice openly.  As such, it allows us to keep the sale as confidential as possible. 

Whilst most people know the names of the larger Corporates, we tend to find the smaller Corporates and dentists who own a dozen dental practices will generally offer the best price and terms.  It is also using our knowledge in knowing where each Corporate is looking to purchase or wanting to branch out to. 

We generally arrange viewings for evenings and weekends when the practice is closed.  It is also worth considering that if the potential buyer is an associate at another practice they are likely to want to keep the fact that they are looking for a practice confidential too.  On occasion, we have confirmed to buyers that the vendors will give the potential buyer a call (who is waiting outside) to confirm that the coast is clear.

Most people would wait until the completion is nearing.  There is a requirement to give adequate notice under the TUPE (Transfer of Undertakings Protection of Employment) regulations, but other than this, until the legal work is virtually complete we would normally suggest waiting.  For most staff, the idea of a new owner of the practice may create worry and concern, and it is usually the uncertainty that causes the anxiousness.  Once the legal process is nearly complete, the vendor is generally comfortable at this stage allowing the new purchaser to meet the staff, and this can be a good time to tell the staff, so that they get to meet the new owner and hopefully put their minds at ease.

Once we have a buyer and need to start the legal work, you will then need to make a call as to whether you can collate the due diligence (all the information the buyers solicitor want for the practice) or possibly where you need the assistance of the practice manager.  In my experience, I would say at least 1/3 of practices would involve the practice manager to help with the workload but this is obviously a personal choice for the vendor.  Where involving a practice manager they can be informed of the delicate, confidential nature.

If you would like to have a confidential discuss about the sale of your dental practice then please do not hesitate to contact us.