Project Wind

New Practice for Sale

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

• Long Standing Three Surgery Mixed Practice

• Significant Scope To Grow The Private Element Of The Business Further By The
Introduction Of Specialisms And Active Advertising Which Is Currently Unexplored
• Additional Room Space on Site offers Expansion To Four Surgeries Over Time
• The Practice Is Located In a Desirable, Affluent Area
• High Level Of Investment Internally, All Three Surgeries Are To An Excellent
Standard

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
Catherine Murphy

catherine.murphy@dentalelite.co.uk

07824 629325

Business Support
Hayley King

hayley.king@dentalelite.co.uk

01788 545900

Buyer Account Manager

Naz Devshi

Naz.devhsi@dentalelite.co.uk

07745 527351
 Purchase Price
Inclusive Of Freehold

£1,715,000
Goodwill
£1,250,000

Freehold
£465,000

Overview
Gross Revenue / Projected

Run Rate

£724,946

Turnover Composition

Practice Location; Essex 48.91% NHS

51.09% Private

EBITDA

The practice is located within an affluent town in Northeast Essex, approximately £156,231
three miles outside of Colchester. The 2011 census estimates the population of the
area to be in the region of 7,637, however, this figure has grown consistently year on
year as the area has undergone redevelopment. Maintainable Profit FT
Principal
Located within a large residential area, the site has a secure patient base which can
be easily expanded over time. Given the size of the building, the site benefits from £301,317
its own car park, which is utilised by patients,
Tenure
Nearby bus networks are frequent with a railway station within walking distance.
Freehold

Property Type

Converted Residential

Number of Surgeries

3
3 Year Income
Trading Structure
£599,733.00 £641,668.00 £634,193.00
£700,000.00
Sole Trader

£600,000.00 UDA Quota / Average Rate

£500,000.00 12,949 UDAs (£27.38)
£400,000.00
£300,000.00
£200,000.00
£100,000.00
£-
2019 2020 2021
Particulars Practice Background
Freehold The practice has been located in the area for many years and has grown to support a far-
reaching patient catchment. The site is located within a large converted residential
Practice Layout property which has provided a growth opportunity which can be further expanded upon
Large Reception & Waiting over time.
Area
Fully Equipped Surgeries The practice has been well maintained with significant investment over the years which
Separate Decontamination is shown throughout the entire building. Each surgery has been well thought out and
Room maintained to an excellent standard, The site is a real turnkey practice for any incoming
Staff Room buyer. Space on site has been very well utilised and there is scope to increase to four
surgeries over time.
W/C
Store Room

Parking Provision
Current Ownership
On Site Parking
Name Current Role Ownership
Computer System

Software Of Excellence Principal Clinical 100%

Scanning Equipment

Digital X-ray
Trading Style

Current Status
DDA Compliance
Sole Trader Entire Practice
Yes

Last CQC Inspection

28th September 2021 Important Notes

Opening Hours The structure of the business is one of sole trader status therefore presented as an asset
sale.
Monday The NHS contract is held under the name of the principal dentist and will be transferred
9 am till 5.30pm via the standard partnership agreement.
Tuesday
9 am till 5.30 pm
Wednesday
9 am till 5.30 pm
Thursday
9 am till 5.30 pm
Friday
9 am till 5.30 pm
Saturday
Closed
Sunday
Closed
 Revenue Chart
Total Revenues

NHS Income

NHS £354,557
Private
Plan Dentist Fee Per Item
Hygiene
£210,896

Hygienist Income

£103,357

Plan Income
Description Particulars
£56,136
Plan Provider TBC

Treatments Offered
Plan Type 1 TBC

√ Crown & Bridge

Patient Numbers TBC √ Dentures
√ Veneers
√ Hygiene
√ Basic Endo
NHS Breakdown √ Whitening
X Implants
X Orthodontics
X Periodontics
NHS General Income (GDS Contract) X Advanced Endodontics

NHS Contract Type GDS

UDAs / UDA Rate 12,949 / £27.38

Existing Breach Notices None

Last Year’s Performance On Target

Area Team Essex

UDA Allocation UDAS Pay Rate

Principal 7,000 £12.00

Associate 2 5,949 £12.00

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

£634,193 Income1 £724,946

£18,790 Materials2 £39,894

3
£18,790 Lab Fees £39,894
4
N/A Associate Lab Fee Contribution (£19,947)
5
£167,226 Associate Fees £274,613
6
Nil Hygienist Fees £41,940

£204,805 Total Cost of Sales £376,394

Current Expenses Description Projected

7
Nil Rent £27,900
£8,596 Rates £3,966

£2,299 Light & Heat £2,299

£1,399 Insurances8 £2,000

£4,136 Repairs & Renewals £4,136
£4,476 Cleaning & Waste Disposal £4,476
£110,312 Ancillary Staff Costs9 £132,989
Recruitment, Training & Course
£4,057 Nil
Expenses
£16,159 Pensions and Superannuation Nil
8
£1,200 Accountancy £2,500

£5,060 Legal Fees Nil

£1,543 Subscriptions & Publications Nil

Nil CQC8 £846

£2,319 Travel & Motor Expenses Nil

£19,566 Depreciation & Amortisation Nil

£2,160 Entertainment & Staff Welfare Nil

£15,227 Other Expenses Nil

£2,286 Telephone £2,286

£3,734 Printing, Postage & Stationery £3,734

£3,783 Computer & IT Expenses £3,783

£137 Sundry Expenses £137

£2,573 Bank Loan Interest Nil

£3,835 Bank Charges £3,835

£214,857 Total Expenses £194,887

Projected Profit
Projected Run-Rate EBITDA (Associate Led) £156,231
Add back if Full Time Principal £147,652
Total Maintainable Profit with FT Principal £301,317
Valuation Assumptions
Citation Valuation Assumptions

1. The income is based on the information provided as detailed above in the breakdown of the revenue
streams within the April 2021 accounts. Plan income has been taken directly from the accounts; the NHS
contract is respective of the contract operating at 100% including last year’s 2.2% uplift. Private revenue
has been extrapolated based on the six months’ worth of figures supplied.
2. The materials have been increased in line with previous years spend to account for any period of closure.
3. The lab fees have been increased in line with previous years spend to account for any period of closure.
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. Please note, associate one has very recently
left the site.
6. See the Hygienist Table contained within for further detail
7. Rent is respective of an estimated £465,000 property value at 6% which is STBV.
8. These costs have been normalised to a level that is typically reflective of a practice of this size
9. See the Ancillary Staff Table contained within

Associate Breakdown
Job Role Days Private Gross Private % Plan Gross Plan %

Principal 4 £122,772 45% £56,136 45%

Associate 1 (recently
- £35,582 50% - -
left)
Associate 2 4 £52,542 50% - -

Associate Plan Recharges

Job Role Hourly Rate Hours Charged

Dentist Plan Recharge £100 per hour 118.8

Hygienist Breakdown
Job Role Weekly Hours Hourly Rate Status Business Cost

Hygienist 16 £42.00 Self Employed £30,240.00

Hygienist 8 £32.50 Self Employed £11,700.00

Ancillary Staff Breakdown

Job Role Weekly Hours Hourly Rate Salary Employers NI and Pension

Practice Manager 40 £14.00 £29,120 £3,699

Deputy Manager 24 £12.50 £15,275 £1,200

Dental Nurse 24 £10.00 £12,480 £696

Dental Nurse 40 £11.00 £22,880 £2,573

Dental Nurse 15.25 £10.00 £7,930 -
Dental Receptionist 36.25 £10.00 £18,850 £1,846
Dental Receptionist 20.75 £10.25 £11,060 £440
Cleaner 10 £9.50 £4,940 -