The Current Market
(Published Wednesday 1 April 2020)
Given the situation across the UK in relation to the outbreak of Covid-19 here is a brief update on the current dental sales market….
For ongoing transactions we have had only a couple of deals abort due to Covid-19, however encouragingly deals that were close to completion carried on as both parties were fully committed and have completed. A number of transactions in the legal process have been deferred and ‘slowed’ down with a view to picking up the matter when the future landscape is clearer. Buyers are looking to still make long-term decisions and we are taking the view that the current climate will be a temporary measure that whilst it will disturb the performance of a practice for a period of time there will be no impact on the long-term success of the sector.
There is a considered and calm approach being taken by the specialist lawyers advising clients, as is the case from accountants. The situation with the banks is in a state of flux as they support existing clients, however, as we come through Covid-19 we would expect there to be clear mandate from the Government to stimulate growth across the UK. Given that healthcare, and dentistry in particular, is a low risk sector we would expect to see funding support being made available very soon.
There will be period of time where it will be necessary for sellers, and buyers, to adapt and be flexible in relation to agreeing terms on the sale of a dental practice. However, this situation is not expected to exist for more than a few months.
Taking all these factors into consideration we are confident that there will still be a significant demand for dental practices as we move towards 2021.