Selling your dental practice can be a complex but rewarding process. At Jacobs Legal, we understand the importance of clear guidance during this exciting transition.


Here's a breakdown of the key steps involved:


  • Finding the right Buyer/Seller:

This initial stage involves connecting with potential buyers (if you're selling) or qualified sellers (if you're buying). This could involve working with a dental broker or advertising the practice directly.

  • Heads of Terms:

Once you've identified a suitable match, you'll you may  decide with the other side to outline the broad terms of the deal in a "Heads of Terms" document. Alternatively, the broker might prepare these for you. This covers key aspects like purchase price, timelines, any deposit that the broker may require and any contingencies.

  • Due Diligence:

Here, the Buyer will delve deeper into the details of the business. Buyers will meticulously examine the practice's financial records, contracts, and equipment to ensure they understand what they're buying. Sellers should expect to provide all relevant documentation.

  • Negotiating the Asset or Share Purchase Agreement:

This legal document outlines the specifics of the sale, covering everything from the purchase price and payment terms to warranties and post-sale restrictions. A dental lawyer is crucial in ensuring a fair and comprehensive agreement.

  • Negotiating the Property Contract:

If the practice owns or leases the building it operates from, a separate property sales agreement or lease contract will be negotiated. This involves issues like title, warranties, and potential renovations.

  • Transfer of Assets/Shares and Property:

Once all agreements are finalised, the ownership of the practice (assets or shares) and the property (if applicable) is officially transferred to the buyer.

  • Completion of the Transaction:

This stage marks the formal closing of the sale. All monies are exchanged, legal documents are signed, and ownership is transferred.

  • Registration:

Depending on the practice structure, there may be final registration requirements to ensure the ownership change is reflected in official records.

Jacobs Legal can guide you through every step of the dental practice sale process, protecting your interests and ensuring a smooth and successful transaction. Contact us today on info@jacobs-legal.co.uk or 07776 132339 to schedule a consultation.

 

Principal vs. Associate-Led Dental Practices: A Financial Analysis

20 September 2024
Understanding the Leadership Structure The leadership structure of a dental practice can significantly impact its financial performance. There are two primary models: Principal-led and Associate-led. Principal-led: In this model, the principal dentist owns and operates the practice, assuming full financial and management responsibility. Associate-led: Here, the dentist is a self-employed contractor to the practice, the principal dentist having the responsibility to provide patients and where necessary, to offer assistance and advice. Financial Implications Income Distribution: Principal-led: The principal dentist retains all profits after expenses, potentially leading to higher income but also greater financial risk. Associate-led : Associates receive a percentage of the fees that they generate as income, providing more financial stability but limiting earning potential. Overhead Costs: Principal-led: The principal dentist is responsible for all overhead costs, which can be substantial. Associate-led: The Associate is responsible for a share of the lab expenses that they generate Debt and Risk: Principal-led: The principal dentist is personally liable for any debts or financial obligations incurred by the practice. Associate-led: The associate is not responsible for the practice’s debts and liabilities. Succession Planning: Principal-led: Succession planning can be more complex, as the principal dentist must find a suitable successor or sell the practice. Associate-led: Succession planning can be easier, as associates may have an option to purchase the practice or continue working under new ownership. Financial Considerations When evaluating the financial implications of a Principal vs. Associate-led practice, consider the following factors: Personal financial goals: Are you seeking higher income potential or a more stable income stream? Risk tolerance: How comfortable are you with assuming personal financial risk? Long-term goals: What are your plans for the future of your dental career? Local market trends: Are there any trends that favour one model over the other in your opinion and experience? Conclusion The choice between a Principal-led or Associate-led dental practice sale and purchase depends on your individual circumstances and financial goals. By carefully considering the financial implications of each model, you can make an informed decision that aligns with your professional aspirations and long-term success. Feel free to contact us for more help and advice.

Purchase Completed in York

19 August 2024
Congratulations to Joanne Nurse on the acquisition of a share in Adventurers Day Nursery in York. Joanne now becomes co-owner of the nursery with Helen Nurse. Many thanks to everyone involved in the transaction, especially Amardeep Nangla for his work done on the property side and all those at Barclays Bank who helped facilitate this transaction. All at Jacobs Legal wish Helen and Joanne all the best for the future and much success in the years to come.
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