Project Sail

New Practice for Sale

Anil Sokhi
07707 283409
Anil.sokhi@dentalelite.co.uk
Practice Key Points

• Predominately NHS practice at c73.16%

• Spacious Ground Floor Plot with Four Fully Equipped Surgeries
• Great Potential for Additional Private Growth
• Turnkey Practice and Recently Redecorated throughout
• Busy Location on an Avenue of Local Businesses in Close Proximity to a Growing
Retail Park with Excellent Transport Links

Confidentiality

We are instructed on behalf of the seller to maintain a confidential sale. This information is
designed to be read only by the registered recipient and must not be passed to a third party.
If a confidentiality breach is discovered, you will be removed from the database and the seller
will be informed.

Practice Consultant
Julie Randle

julie.randle@dentalelite.co.uk

07778 487846

Business Support
Hayley King

hayley.king@dentalelite.co.uk

01788 545900

Buyer Account Manager

Laura Dewes

Laura.dewes@dentalelite.co.uk

07826 556040
 Purchase Price

£750,000

Overview
Gross Revenue

£647,254

Turnover Composition

73.16% NHS

26.84% Private

EBITDA

£99,849

Maintainable Profit FT
Practice Location; Suffolk Principal

£206,169

Tenure
A fantastic opportunity to buy an established practice conveniently located off the
A14. Benefiting from an NHS contract of 18,728 UDA’s. The practice has been Leasehold
providing mainly NHS dentistry but with a drive from an ambitious new owner the
practice revenue could continue to grow as demand for private dentistry in this area Property Type
is high. The practice has a strong footfall both as a result of the NHS agreement and
Purpose Built
the location.
Number of Surgeries

Trading Structure

Partnership

UDA Quota / Average Rate

18,728 UDAs (£25.28)

Particulars Practice Background
Lessor The practice is held in a partnership. The current partners currently work two and a half
days per week. The current private income is entirely derived from private patients and
External Landlord not from the NHS list, so there is ample opportunity for further private growth.

Length of Lease The principals are now looking to step back from the running and management of the
practice. However, are happy to stay for an agreed period to ensure a smooth handover.
12 years

Practice Layout
Reception & Waiting Area
Four Fully Equipped
Surgeries
Managers Office
Disabled Toilet Current Ownership
Store Room
Name Current Role Ownership

Partner Clinical 50%

Parking Provision
Partner Clinical 50%
On Site Parking

Computer System
Trading Style
Software Of Excellence
Current Status
Scanning Equipment

Intraoral Partnership Entire Practice

DDA Compliance
Important Notes
Yes

Last CQC Inspection The NHS contract is held in both partners’ names and will therefore be transferred via the
standard partnership route.
November 2017
The practice had a new 20-year lease in 2014. They have an excellent relationship with
the landlord, and she would be happy to continue with the current agreement.
Opening Hours
The partners are currently in discussions with the Local Area Team with regards to
Monday reviewing the UDA rate.
9 am till 5 pm
Tuesday Asset sale.
9 am till 5 pm
Wednesday
9 am till 5 pm
Thursday
9 am till 5 pm
Friday
9 am till 5 pm
Saturday- 1 per month
9 am till 12 pm
Sunday
Closed
 Total Revenues

NHS Income

£473,509

Dentist Fee Per Item

£126,914

Hygienist Income

£45,451
Private Treatment Patient Fee

New Patient Exam £85

Sundry Income
Regular Patient Exam £45
£1,381
Hygiene Visit £69

Composites £200

Crowns £660
Treatments Offered
Dentures £500 √ Crown & Bridge
Implants Referred Externally
√ Dentures
√ Veneers
Teeth Whitening £400 √ Hygiene
√ Basic Endo
Orthodontics Referred Externally √ Whitening
X Implants
X Orthodontics
NHS Breakdown √ Periodontics
X Advanced Endodontics

NHS General Income (GDS Contract)

NHS Contract Type GDS

UDAs / UDA Rate 18728 / £25.28

Existing Breach Notices None

Last Year’s Performance On Target

Area Team East Anglia

UDA Allocation UDAS Pay Rate

Partner 1 1,728 £12

Partner 2 1,000 £12

Associate 1 3,500 £12.64

Associate 2 2,500 £12.64

Associate 3 5,000 £12.64

Associate 4 5,000 £12.64

Profit & Loss
The modelling on below is a presentation of the earnings of the business before Interest, Tax, Depreciation and Amortization (EBITDA).
These will be different to the figures presented in the practice financial accounts. Additionally, you will note that we have built in
additional expenses to cover the current Principal(s) clinical work in the practice and a rent to cover the use of the premises in the event
one is not currently being charged.

Actual Profit & Loss Description Projected Run Rate

£538,075 Income1 £647,254

£16,964 Materials2 £33,334

3
£9,330 Lab Fees £29,774
4
n/a Associate Lab Fee Contribution (£14,887)
5
£121,172 Associate Fees £295,292
6
£15,375 Hygienist Fees £18,180

£162,841 Total Cost of Sales £361,693

Current Expenses Description Projected

7
£14,167 Rent £18,333
8
£8,301 Rates £2,210

£1,597 Light & Heat £1,597

£824 Insurances9 £2,000

£12,672 Repairs & Renewals9 £8,000
£3,469 Cleaning & Waste Disposal £3,469
£118,802 Ancillary Staff Costs10 £132,167
Recruitment, Training & Course
£954 Nil
Expenses
£3,759 Accountancy Nil

£2,432 Legal Fees Nil

£487 Subscriptions & Publications £946

£10,611 Depreciation & Amortisation Nil

£240 Entertainment & Staff Welfare Nil

£3,332 Telephone £3,332

£1,408 Printing, Postage & Stationery £1,408

£4,938 Computer & IT Expenses £4,938

£885 Sundry Expenses £885

£2,590 Bank Charges £2,590

£1,337 Advertising £1,337

£192,805 Total Expenses £185,712

Projected Profit
Projected Run-Rate EBITDA (Associate Led) £99,849
Add back if Full Time Principal £106,320
Total Maintainable Profit with FT Principal £206,169
Valuation Assumptions

Citation Valuation Assumptions

1. The Income is based on the latest profit and loss accounts from April 2021. Alongside the Software of
Excellence receipt analysis report for the private and sundries only from the 1st January to the 31st
December 2021.
2. The materials have been adjusted in line with the current level of turnover assuming material spend is
linear to turnover
3. The lab fees have been adjusted in line with the current level of turnover assuming material spend is
linear to turnover
4. This is reflective to the portion of lab fees paid by means of a deduction from associate pay.
5. See the Associate Table contained within for further detail
6. See the Hygienist Table contained within for further detail
7. Rent was decreased during the practice closure. Actual rental agreement is £18,333
8. Rates are reflective as the practice benefits from small business relief
9. These costs have been normalised to a level that is typically reflective of a practice of this size
10. See the Ancillary Staff Table contained within. For the purpose of the modelling, we have removed the
bookkeeper as she will not be continuing post sale.

Associate Breakdown

Job Role Days Private Gross Private %

Partner 1 1.5 £43,342 45%

Partner 2 1 £9,664 50%
Associate 1 3 £29,188 50%
Associate 2 3 £28,102 50%
Associate 3 4 £16,618 50%

Hygienist Breakdown
Business
Job Role Weekly Hours Percentage Status
Cost

Hygienist 8 40% Self Employed £12,120.31

Hygienist 4 40% Self Employed £6,060.15

Ancillary Staff Breakdown

Job Role Weekly Hours Hourly Rate Salary Employers NI and Pension

Dental Nurse 37.5 £10.86 £21,177 £2,266

Head Nurse 34.25 £14.40 £25,646 £3,072

DN / Receptionist 37.5 £10.86 £21,177 £2,266

DN / Receptionist 37.5 £9.09 £17,726 £1,643

DN / Receptionist 37.5 £8.91 £17,375 £1,579
DN / Receptionist 30 £9.00 £14,040 £977
Bookkeeper 7 £16.10 £5,860 Nil