Dental Market Update | September 2020

We know from speaking to sellers that there are two key questions you are likely to have when considering a sale:

WHAT HAS HAPPENED TO PRACTICE VALUES?
Deal values being achieved are broadly reflective of pre-COVID-19 income and the continuing underlying demand for practices of all types. Far from slipping, prices have held firm and competitive interest still regularly drives deals beyond asking price. 

WHO IS IN THE MARKET TO BUY AT THE MOMENT?
With an influx of new buyers, demand remains very high. Recent events have served to focus the minds of many associates who have brought forward plans to buy in order to secure themselves an income. Practice owners, regional operators and national groups remain, in the most part, highly acquisitive and are seeking opportunities for short to medium term expansion.

Our message is clear - you can still achieve a good price for your practice from a large pool of potential buyers.
 
OUR OFFER ACTIVITY IN THE UK DENTAL MARKET

In July and August, Christie & Co received more offers for dental practices than in any month in the preceding twelve.

The chart above provides an overview of our offer activity since January through to the end of August 2020. The data shown is UK wide and excludes group offers exceeding £10 million. It is therefore reflective of the core ‘volume’ market.

KEY POINTS:

• There has been a sharp recovery in interest received across the full spectrum of practice type and size, across the UK
• Interest has been driven by an influx of new ‘associate' buyers, existing operators, as well as regional and national operators
• The aggregate offer value for the two months in Q3 (July and August) exceeds that of Q1 by c. £20 million
• Following the re-opening of practices in early June, both aggregate offer value and volume had increased by 100% in July
• We expect the aggregate offer value in Q3 to exceed the total combined value of Q1 and Q2
• The total aggregate offer value YTD (to the end of August and excluding group offers) is c. £135 million

 
Now more than ever, it is prudent for sellers to seek professional advice.

Since 1935, Christie & Co has supported our clients through many difficult moments, and as a RICS regulated firm, we work to the highest professional standards and have a unique insight into market activity.

We can help carve through the concerns and unsolicited suggestions of desecrated values, and act in the sole interest of a seller in order to achieve a successful and realistic outcome. 

We would love to hear from you if you are considering selling your dental practice. Please feel free to get in touch.
MEET THE CHRISTIE & CO DENTAL TEAM

We have a team of highly experienced and specialist agents working across all regions of the UK, helping clients to sell their dental practices. The team work closely with our dental Valuation Services and Finance teams to deliver a complete range of services and products to our clients at all stages of the business lifecycle.
 
VALUATION SERVICES

RICS is the Royal Institution of Chartered Surveyors. Christie & Co is the only RICS Regulated firm dealing with
practice sales in the UK. This ensures that the advice you receive is accurate and relevant to the changing market place in 2020 and 2021.

We have the largest national team of Chartered Surveyors and valuers dedicated to its specialist markets, offering valuations, consultancy, rating, investment, rent reviews, lease renewals, building surveying, planning and dispute resolution advice in the dental sector. 

Christie & Co’s valuers are in a unique position working alongside industry agency and sales experts within each of our respective fields. No other business working within our specialist sectors has this type of in depth market knowledge.

All inspections are undertaken according to a comprehensive protocol, to protect our staff and your customers, and will only be undertaken with the express agreement of all parties.

Please get in touch if you would like to find out more about our professional services.


Head of Medical Valuations

T: 0121 452 3703
M: 07791 183 966
E: christopher.vowles@christie.com
 
CHRISTIE FINANCE

In the current climate more so than ever before, knowing the right people at the right lender is absolutely crucial.

Christie Finance specialise in the dental sector and therefore, have relationships with appropriate contacts at many lenders across the UK, providing local expertise with a national reach.

In order to protect the future of your business, you may need quick access to finance. We have an Unsecured Finance division at Christie Finance who may be able to assist in securing the funds you need in the short term.
Our unsecured loans are quick to arrange and can help with:

• Cash flow
• One-off purchases/additional or replacement equipment
• Stock loans
• Funding of tax and VAT liabilities (reimbursement of liabilities already paid to alleviate cash flow pressures)