I wanted to share this recent case study as I think it is one simple example of how we ‘help dentists fulfil their business ambitions’ and why we should all stick to our core competencies.
I took a call from an accountant recently who had been asked by his dentist client to help him sell his business.
It was something the accountant had never done before but he wanted to help his client as that is what he had done over several decades of managing his business finances.
This was to be a freehold sale of an NHS practice in a highly desirable suburb of London.
Through his local community connections, the accountant had found a dentist (1) who was interested in buying the practice. All good so far I guess.
A practice viewing was arranged and the prospective purchaser attended with an in house valuer provided by his own accountants. The valuer acting for the prospective purchaser spent the entire meeting talking down the value of the business. I imagine that was the brief from the sole prospective purchaser.
On the back of the valuation an offer of £160,000 was made for the Goodwill Fixtures & Fittings.
This was less than 2 multiples of the adjusted net profit for the preceding financial year.
At this point the accountant acting for the vendor became aware he was at risk of doing his client a grave disservice by overseeing the sale of his clients practice for a fraction of its true value and took the crucial decision to call me for some advice.
Within 3 days Lily Head Dental Practice Sales were instructed to market the dental practice. We stick to our core competencies and were looking forward to helping the dentist ‘fulfil his business ambitions’.
We revalued the practice and raised the vendors expectations on the current market value of his business.
The practice sold within 3 weeks of going to market and achieved a sale price of £285,000 for the Goodwill Fixtures and Fittings.
This was a win for:
- The vendor, who received £125,000 (76%) more than the initial offer and did not have to manage the sale himself.
- The vendors trusted accountant who ultimately participated in a very successful sale.
- Lily Head Practice sales who got the chance to help a dentist and secured a fee.
So, what can we learn from this?
- Always get your own valuation done.
- A good Dental Broker is worth its’ weight in gold.
- It is never too late to do the right thing.
- Make sure your trusted advisor has the core competencies you need.