Dental Tribune United Kingdom Edition

March 11-17, 201322 Money Matters United Kingdom Edition THE GOLD STANDARD IN PRACTICE SALES AND PURCHASES RIGHT NOW, YOU MIGHT BE CONSIDERING THE SALE OR PURCHASE OF A DENTAL PRACTICE, AND YOU ARE NOT SURE WHO TO TALK TO ABOUT IT. Either way, you’ll want to talk to somebody who acts as a broker in your best interests. That’s where Frank Taylor & Associates can help. We have acted on behalf of clients on both sides of selling and purchasing practices over many years and across 1000s of transactions. This is why we are seen as the Premier Sales and Purchase Agent for dental practices throughout the UK. So, if you are looking for the right relationship, go for the company who is the best, with a focus on what’s right for each client. We also just happen to be the biggest; so come to Frank Taylor & Associates and we’ll turn your sale or purchase into Gold. For more information on how we can help you with a sale or a purchase, visit us on stand HO5 for a confidential conversation or call us on 08456 123 434. Call us now on 08456 123 434 or email us at team@ft-associates.com mindcorporation02076100300 PRACTICE SALES | PRACTICE PURCHASES | LOANS | EVALUATIONS | RECRUITMENT | FINANCIAL SERVICES fta-ad-evaluation_Andrew_amends:Layout 1 16/08/2012 17:27 Page 1 FrankTaylor & Associates THE GOLD STANDARD IN PRACTICE SALES AND PURCHASES RIGHT NOW, YOU MIGHT BE CONSIDERING THE SALE OR PURCHASE OF A DENTAL PRACTICE, AND YOU ARE NOT SURE WHO TO TALK TO ABOUT IT. Either way, you’ll want to talk to somebody who acts as a broker in your best interests. That’s where Frank Taylor & Associates can help. We have acted on behalf of clients on both sides of selling and purchasing practices over many years and across 1000s of transactions. This is why we are seen as the Premier Sales and Purchase Agent for dental practices throughout the UK. So, if you are looking for the right relationship, go for the company who is the best, with a focus on what’s right for each client. We also just happen to be the biggest; so come to Frank Taylor & Associates and we’ll turn your sale or purchase into Gold. For more information on how we can help you with a sale or a purchase, call us for a confidential conversation on 08456 123 434. Call us now on 08456 123 434 or email us at team@ft-associates.com Practice SaleS Practice PurchaSeS loanS eValuationS recruitment Financial SerViceS 1935 FTA evaluation advert A4.indd 1 30/10/2012 13:03 A s we settle into 2013 many associates may well be considering their future options and in particu- lar thinking about buying their first Practice. We hear of many associates unhappy with their ‘lot’ and only seeing potential tougher times ahead so it is no wonder the past 18 months have seen a sizable rise in the number of as- sociates looking to purchase. FT&A Finance is headed up by David Brewer who has more than 20 years’ experience in the dental market arranging fund- ing for both first time buyers and established practitioners. Before any associates make any decision to purchase David has outlined the following top tips that it is worth consider- ing:- 1 It is certainly more chal- lenging than previously to gain finance, however the banks ARE still lending but to whom they perceive are the strongest applicants – and all banks are different. Do not go direct to your High Street Bank – instead find out about working with an independent adviser who will be able to provide you with an overview of the whole market (rather than just the thoughts of one bank) and then work with you on your proposal to ensure you have the best chance of a positive response and to negoti- ate best terms. 2 The good news is there are currently eleven high street banks who are lending to den- tists – and they REALLY do want to lend to you – Dentists have the green light! And remember, the cost of borrowing is cur- rently at an historic low. Speak to someone about Government lending initiatives under FLS or NLGS – it could mean your cost of borrowing can be even lower. 3 You need a sound busi- ness plan with realistic and up to date figures. Again work with an independent business adviser as they know exactly what the banks like to see and the format in which to present it. This should include: • Your CV including confirma- tion of your current income levels • ‘Executive’ summary of your proposal • Financials for the subject Practice • Proposed working arrange- ments and impact on bottom line profit • Financial Forecasts (P&L/ Cash flow) including assump- tions behind the figures 4Are you buying on your own or jointly? There are advantages to a partnership but also certain disadvantages which you need to be made aware of. 5 An independent practice valuation is vital. You need to ensure that the figure be- ing quoted by the seller is not inflated and is realistic. This report will also give any poten- tial lenders the majority of the background information that they require. 6Always seek specialist legal advice from experienced dental solicitors. It is false economy to use a lawyer without this spe- cialist knowledge, particularly if there is any NHS element in the purchase. 7Choose the right lender. Several of the major banks have specialist dental lending teams. This means that the decision whether to agree to your loan will be taken by people with experience of the dental sector and how a dental practice func- tions. Alternatively there are a number of companies that offer independent advice and search lenders on your behalf – effec- tively doing the ‘leg work’ for you enabling you to concentrate on your dentistry. This can be seen as the ideal option as you will have had access to the full range of lending deals on offer. 8This is the boring but vi- tal bit - most lenders will insist upon life cover, income pro- tection and practice/property insurance. You should always seek independent ‘whole of market’ advice and from a spe- cialist dental IFA. 9 Make sure you use a spe- cialist dental accountant – es- pecially if you are to purchase your first Practice. 10Enjoy it when it comes to fruition! Owning and running a practice isn’t for everyone but for many it does bring enor- mous rewards and fulfilment. Make sure you book on one of our Beginners Guide to buying a dental practice, they provide a rich source of infor- mation and knowledge and an opportunity to meet the team of FT&A Finance. There is no cost to attend one of our events, and you get CPD points! In 2012 we added to our team and were fortunate to se- cure the services of Helen Skin- ner who will be known to many dentists from her previous role with RBS where she specialised in the dental sector. Alongside David and Helen is Dino Charal- mabous, our specialist ‘whole of market’ Dental IFA who can assist with all practice and per- sonal insurance requirements as well as mortgages and invest- ments. These experts are not only knowledgeable and under- stand your sector but are totally approachable and well known for their efficiency and positive can-do attitude. With over 93 per cent of their funding pro- posals approved by the Banks they have a high success rate as well as being able to secure best terms so if you are consid- ering making a purchase either for your first practice or to add to your portfolio or simply wish to acquire new equipment. DT 10 Top Tips - Financing the pur- chase of your first dental practice David Brewer offers practical purchasing advice About the author David Brewer Head of FT & A Fi- nance has worked in the health care sector for over 20 years and is re- sponsible for se- curing many mil- lions of pounds for the dental profes- sion to enable practice purchases. For more information David can be contacted on 07817 758548 or email david.brewer@ft-associates.com