Buying a dental practice requires a huge amount of investment not only on a monetary basis but also based on the time and effort you spend on the endeavour.
In the U.K., prospective buyers are generally required to perform inquiries on employment due diligence at least 28 days before they complete the acquisition. Some cases are an exception, so you should consult a niche advisory group or a dental solicitor for clarifications.
While you a financial consultant or attorney is important, you need to do your own research about your target patients and understand the practice’s financial records. It is also important to find out why the seller intends to exit the business since it may give clues on certain issues about the dental practice.
By knowing this information, you can create a solution to avoid it in the future. Financial advice from an accountant or lawyer would be necessary as well, particularly for tax compliance and employment purposes.
Remember that a seller should inform you about the identity of employees, their age and employment details, any disciplinary records, details of a collective agreement or outstanding claims such as unfair dismissal.
A dental practice in England must be registered with the Care Quality Commission, whether it is private practice or under the National Health Service. There is also the Transfer of Undertakings (Protection of Employment) Regulations for dental practices with 10 or more employees.
An adviser with knowledge on the dental specialist employment field will be useful since this law requires the discussion of the employees’ terms and conditions.
An acquisition of a dental practice can be a profitable investment, but it requires extensive planning on your part. It is better to hire a financial adviser to help with the transaction, particularly with matters concerning the law.