Have you thought about joining a dental consortium?

Dentistry is VUCA – volatile, uncertain, complex and ambiguous. For a generation of dentists who have served the profession impeccably, the time has come to think about a possible exit. Many dentists up and down the country are now feeling that dentistry has changed, the patient interaction is no longer what it used to be, the NHS asserts an unreasonable amount of pressure on clinicians; ultimately not serving patients or the profession; the thought of keeping on top of compliance is another constant mental itch that keeps principals up at night, no matter how many ‘self-help’ compliance portals they have signed up to. It’s no wonder therefore, why so many are thinking of and planning a possible exit.

Of course goodwill prices are high, which further adds to the temptation to exit now, rather than later. Good practice valuations coupled with an endless stream of buyers queuing up to have a look at your practice seems too good to resist. Imagine not having to worry about managing, recruiting and training staff, payroll, dealing with patient complaints, endless paperwork, and giving up your weekends. All of these are reasons why experienced dentists sitting on a pile of goodwill should look to sell.

But as with all things in life – when something looks too good, it usually is!

Consider this:

1.     Only 1 in 4 practice sales actually go through the first time.

2.     Selling the practice is a tedious exercise, especially with how long it can take to transfer the contract across, and all the endless financial questions that one is subjected to.  

3.     Who do you want to sell to? A corporate? A young fresh faced dentist? An experienced ambitious dentist who already has a multi-site operation? Each comes with their own baggage. Who do you want to pass your legacy onto? And how will they treat you 6-months down the line?

4.     How much control do you want to lose, if any at all? Most principals want to pass over all the paperwork, and day-to-day management of the practice but retain control of the clinical standards and patient care. This fine balance is hardly ever achieved.

Now what if…

1.     You could join a consortium of dentists who all wish to relinquish the day-to-day management of their practice by commissioning a specialist team to execute it all for you?

2.     In 12 – 24 months your practice valuation could be far higher than what you could achieve as a stand-alone dentist?

3.     The new buyer allows you to retain up to 25% of your practice, and keeps you on as partner at your site without having any legal or managerial responsibilities?

4.     And in 3 years, you could exit fully where your 25% is valued at over 9 times profit?

5.     …and then you can ride off into the sunset knowing you’ve maximised your value, retained respect and credibility with the new buyers, and enjoyed the last few years of dentistry by optimising patient care.

Sounds too good to be true?

Well, now let me tell you…

1.     You can join this consortium through invitation only, coupled with the fact that your practice must be of a certain size and reputation.

2.     A one-off membership fee will be charged upon accepting the invitation to become a member of the consortium.

3.     To achieve the perfect balance between relinquishing the management burden while retaining clinical control you must agree to sell a minimum of 75% of your practice to the management team that will operate the consortium.

4.     And finally, as part of the consortium you will have an input into the overall ethos and value of the group, but then must abide by them once accepted.

If you’d like to know more about how to engage with this innovative business model for dentists wishing to exit over the next few years, please contact me directly. You may be a professional legal or financial adviser who has many dental clients – if this could help your client achieve their goals then please get in touch. We have a unique offering for advisers who successfully introduce dentists to the consortium.