Our latest Practice Value Index published in the October 2022 issue of Dentistry Magazine is a landmark one….it’s the 100th issue we’ve published!
Reflecting on the longevity of the index, Lis Hughes of FTA, said, “We’re delighted and proud to achieve the 100 milestone, particularly because its publication and the research the team at FTA do behind it every month is invaluable in detecting trends in the industry, quantifying them, and helping our clients get ahead of the latest developments. Of course, the last few years have been particularly challenging in this, and many other industries. I expect a similar fast pace of change in the future and look forward to us being able to support the industry with our research for many years to come. Here’s to 2023!”
It is certainly true that the amount of data and research behind the publication of the index is both impressive and comprehensive. For example, in 2021, a year in which the industry was still very much in the clutches of the pandemic, the team at FTA sent 1.2m emails, arranged 1,100 viewings, brought on 300 new buyers and negotiated an astonishing aggregate of over £1billion worth of offers. “Despite everything, it was a busy year!”, Lis smiled.
“This year is no different, we are seeing a buyer to practice for sale ratio of 28:1 and with 18 banks prepared to lend to the sector, such is their confidence in it, we are sure of seeing some healthy indices as we start our second century. We have around 5,500 buyers registered with us, that’s 20% up on pre pandemic levels and over 50% up since 2011, which really indicates their desire to be in control and secure their future”.
“The statistics don’t tell the full story about practice sales though”, continues Lis. “It’s often the biggest financial decision people make in their careers, possibly their lives. Nevertheless, it needn’t be daunting, and we are equally experienced in guiding people through the process as we are in producing practice valuation indices! There are several parties involved in the process, solicitors, banks, NHS and CQC to name but four. Naturally all will have other demands on their time and act at different speeds, however we always advise our buyers to be organised and responsive and have their documentation ready in order to meet any requests that may arise. The key is being prepared and having one’s own paperwork in order. We are often asked how long a sales process may take, and in reality, it’s impossible to tell. The quickest are probably around four months, but I’d say six to nine is more the average. That might sound like a long time when you are committed to move and excited about the next step in your own journey, but in the grand scheme of things it’s not so long and does allow all the necessary due diligence to take place”.