Dentist partner buyouts

Buying into an established dental practice is a major step in your career. You know the kind of profits you should be sharing in and avoid the costs and uncertainties of setting up.

Partner Buy-ins are common with larger dental practices and may be an opportunity for an existing firm to bring in new talent as part of an expansion plan, or as a way for an existing partner to leave the business, often to retire.

Funding will be required from the joining partner, either to support the growth plans of the business or to recompense the exiting partner for his or her hard work in building up the practice. Some funding may be required by the business itself

With a Buyout, you may acquire the entire practice.

The sums involved will reflect the turnover and new partner joining as a junior might expect to pay considerably less than someone taking over an entire practice. In both cases, it is essential to find the most appropriate kind of funding solution, and the most competitive rates.

Funding a Dental practice partner buy-in or buyout

Several solutions exist:

Secured Loan

The scale of funding required with larger practices - which can be £250,000 or more - may make some form of Secured Loan necessary. Security, such as the business premises or your home, may be required and will be at risk if you cannot keep up repayments.

Practice Loan

It may also be possible to arrange a Practice Loan that is effectively an advance secured on the future performance of the business.

Asset Refinance

Borrowing against the existing assets in the practice, which are likely to include a great deal of valuable equipment, may allow a high level of funding to be raised.

Unsecured Loan

Lenders may provide an Unsecured Loan, repayable over three to five years, to support a buy-in or buyout. No security is required, but you will need to provide a Personal Guarantee or this type of lending.

Private Equity

This an increasingly popular source of finance even at the smaller end of the market. Private equity firms usually want liquidity after 3 to 6 years and expect to take their profits then. Remember that the private equity firm is looking to maximize its own returns, rather than building a sustainable future for the business.

Vendor Loan

The vendor can help fund the transition by leaving some of their equity in the company as loans to be repaid over time. This may be required by some lenders who seek evidence that the plan is seen as fully viable by the sellers.

Why you need Rangewell to find finance for your dentral practice buy-in or buyout

If you are planning to buy into an established practice many lenders will be happy to lend to you. Your status represents a good business risk, and you can prove the viability of an existing business with accounts.

But not all lenders will be prepared to offer the most competitive terms or provide the flexibility that you need.

Looking for the most competitive deal across the entire market takes time and expertise. We know the lenders who can offer the most competitive rates and we find solutions for all types of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.

As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and styles of funding.

Call us now to get our experts working for you.