Mr. Luke Moore, head of Dental Elite's practice brokerage team, discusses the latest findings from their extensive market report on UK dental practices. He reveals that independent dentists are the primary buyers, not corporates, dispelling common myths. The conversation highlights how NHS and mixed practices command varying premiums, with recruitment-challenged areas pulling lower prices. Luke shares key insights on transaction sizes, financing trends, and the strategic pivots in practice acquisitions in the current market landscape.
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insights INSIGHT
Large Sample Gives Market Clarity
Dental Elite covers ~20–25% of UK dental transactions, giving broad market visibility.
Their dataset spans deals from £50k to £10m, capturing diverse market trends.
question_answer ANECDOTE
'Squat' Principals And Distressed Sellers
Luke describes 'squat' principals who scale to ~£1.2m then sell and repeat elsewhere.
He contrasts these with distressed sellers who open practices that never gain traction.
insights INSIGHT
Independents Drive Most Acquisitions
Independent dentists buying their first few practices remain the dominant purchaser group.
Large corporate buyers still exist but represent only about 30% of transactions.
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——————————————————————— Curious about dental practice values in today's market? Wonder what's really happening with corporate buyers and whether NHS practices still command premium prices? The data might surprise you.
Luke Moore, Head of Dental Elite's practice brokerage team, joins us to unpack the revealing findings from their annual dental market report—a comprehensive analysis representing roughly 25% of all UK dental practice transactions. This insider's view of completed sales (not just valuations) delivers eye-opening insights for anyone considering buying or selling a practice.
We dismantle the prevailing "urban myth" that corporates dominate today's acquisition landscape. The reality? Independent dentists purchasing their first, second or third practices remain the primary buyers, while the largest groups have pivoted toward fewer, larger acquisitions with specific strategic focus.
The conversation explores why mixed practices command the highest multiples from independent buyers (averaging 3.87x FMT), while private practices are the "jewels in the crown" for corporate buyers (averaging 7.36x EBITDA). Luke shares fascinating details about regional valuation disparities, with practices in recruitment-challenged areas selling for significantly lower multiples than their urban counterparts.
Perhaps most revealing is the emerging trend of sellers prioritising complete payment at completion over potentially higher valuations with deferred components—a shift Luke attributes partly to mixed post-sale experiences reported by principals who've previously sold to larger groups.
Whether you're a practice owner contemplating your exit strategy, an associate exploring ownership opportunities, or simply interested in the business of dentistry, this data-rich conversation provides crucial context for navigating today's complex dental marketplace.
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