BEYOND THE NUMBERS
Deciding to buy or sell a dental practice is one of the biggest professional and financial decisions a dentist will make. Whether you’re preparing to sell after years of dedication, taking your first steps into ownership, or restructuring to bring in a new partner, one critical step ties everything together – establishing an accurate dental practice valuation.
But beyond the numbers and spreadsheets, a dental practice valuation is deeply personal. This is a business that may have taken decades to build, where patients have become familiar faces, and staff feel like family. Understanding its true value isn’t just about financials – it’s about the legacy and future of the practice.
Understanding Why You Need a Valuation
Before diving into numbers, it’s crucial to define the reason behind the valuation. Are you selling to retire, move to a smaller practice, or step up the ladder? Are you securing finance or bringing in a new partner? Your motivation will shape the valuation process, ensuring it meets your goals.
Gathering Financial Data
The backbone of any valuation is financial records. At least three years’ worth of accounts provide a clearer picture, smoothing out any anomalies like unexpected costs or the impact of a turbulent year (2020 comes to mind). However, even the most recent accounts can be outdated due to HMRC submission deadlines, so gathering current fee income, NHS contract values, and UDA numbers is essential.
Considering the Property and Practice Stability
Is the practice freehold or leasehold? If leasehold, how long remains on the lease? Understanding the property’s security is key, particularly for buyers seeking financial stability. Equally important is assessing staff tenure—long-term employees indicate a strong, trusted practice, whereas frequent staff turnover might raise concerns.
More Than Just Numbers—The People Behind the Practice
A dental practice isn’t just bricks, chairs, and equipment—it’s the people who make it work. The value of a loyal patient base, a committed team, and a strong local reputation cannot be underestimated. A practice with high patient retention and a positive standing in the community will naturally command a higher valuation.
Benchmarking Against Other Practices
Once all data is gathered, the next step is comparison. Looking at similar practices in similar locations gives a sense of market value. Urban practices may face stiff local competition, while rural ones might have a broader patient catchment.
At this point, everything circles back to the original question—what’s the next step? Whether it’s a sale, raising finance, or restructuring ownership, understanding the true value of your practice ensures you’re making an informed decision, supported by experts who know the sector inside out.
A practice valuation can feel overwhelming, but with the right guidance, it’s an opportunity to truly understand the worth of what you’ve built—and take the next step with confidence.
Practice - West Midlands
Practice location: This practice is located in a busy market town in West Midlands less than a five-minute walk from the town centre. The area has a strong local economy and excellent transport links.
Practice type: A fully private, one-surgery practice predominantly plan-based, with room for expansion. The premises are leasehold and set within a two-storey terrace property.
Practice financials: The gross fee income is approximately £275,000 with 60% derived from plan patients and 40% from private fee per item. The income is generated by the principal working 3.5 days per week, supported by a part time hygienist, and a full-time nurse.
Price achieved: A price of £350,000 was achieved.
Agent's comments: This charming, single-surgery practice attracted a lot of interest due to its strong plan income, loyal team, and scope for expansion. With no evening or weekend appointments and the potential to increase clinical hours or add a second surgery, the new owner has a clear pathway for growth.
Number of people looking in the area: 1,034
Practice - Greater Manchester
Practice location: This long-established practice is located in a town with a population over 60,000 and a rich industrial heritage. Situated within walking distance of the town centre and close to two major motorways, the practice benefits from excellent access and local amenities, including on-site parking.
Practice type: A two-surgery mixed-income practice with scope to expand into three surgeries. The practice is freehold and has been owned by the current principal for over 25 years. It has a strong NHS contract and is predominantly associate-led.
Practice financials: The gross fee income is approximately £675,000, made up of 80% NHS and 20% private income. The NHS UDA rate is over £35. The income is generated by two full time associates supported by a full-time practice manager, three nurses, a receptionist, and a part-time cleaner.
Price achieved: A price of £1,350,000 was achieved (including freehold).
Agent's comments: With a solid NHS base, high UDA rate, and great location, this practice was an attractive investment. The opportunity to convert a plumbed and wired office into a third surgery, along with the absence of marketing or an online presence, offers excellent potential for growth under new ownership.
Number of people looking in the area: 969
Practice - Surrey
Practice location: This well-established practice is located just outside the town centre in a popular town. The area is undergoing substantial housing development and benefits from strong road and rail links, including regular services to London.
Practice type: A four-surgery mixed-income practice operating from leasehold premises. A new 20-year lease will be created for the incoming buyer. The property is a detached building with ample on-site and street parking, and has been fully modernised, including digital radiography and an OPG.
Practice financials: The gross income is in the region of £970,000, comprising 60% private, 35% NHS, and 5% plan income. The NHS contract covers just over 11,000 UDAs more than £30 per UDA. The income is generated by three associates, a therapist, a hygienist, a full-time practice manager, five dental nurses, and two receptionists.
Price achieved: A price of £1,150,000 was achieved.
Agent's comments: This turnkey practice drew significant interest due to its size, location, and modern setup. With no evening or weekend appointments and a growing local population, the incoming buyer is well positioned to further build income through extended hours and enhanced marketing.
Number of people looking in the area: 2,072
Practice - Wiltshire
Practice location: Situated on a high street in a charming countryside town, this practice enjoys excellent visibility and footfall. The town combines historic character with modern amenities and is easily accessible, and nearby rail links to London.
Practice type: A three-surgery mixed-income practice. The premises are leasehold, with a new 15 ear lease being in place at completion.
Practice financials: The gross fee income is approximately £800,000, split 65% NHS and 35% private. The NHS contract delivers over 17,000 UDAs more than £30 per UDA. The income is generated by the principal, three associates, a hygienist, two full-time nurses, one part-time nurse, and a full-time receptionist.
Price achieved: A price of £1,650,000 was achieved.
Agent's comments: This profitable and fully computerised practice attracted strong interest due to its prime location, solid UDA base, and high-quality setup. The opportunity to expand services and enhance marketing presence presents excellent growth potential for the new owner.
Number of people looking in the area: 660
