Buying a dental practice is a big decision, but one that dentists make every day. It will take some work and due diligence but nothing in life worth having is often easy.
When it comes to considering your funding options we recommend you always engage with a finance broker who has a whole view of the market to advise you. They will have a team of consultants to help you with the entire process. From the analysis of the financial statements through to the drawdown of funds.
The Finance Broker will be able to work out the debt capacity of a target business and conduct a non-financial business review through the lens of a potential funder. All this is designed to strength test a potential opportunity before you invest a single pound (£) of your own money.
An independent finance broker will also help your search process by analysing and preparing summary reports on financial accounts and modelling different debt structures. You can start to see why we say ‘Always Engage with a Finance Broker’.
Many dentists will have looked in detail at several dental practices before they find the right dental practice for them to purchase. One thing they will all agree on are the benefits of having an early discussion about their search criteria. This will also give dentists time to understand the lenders’ credit appetite and the non-financial considerations they apply to a transaction.
Every dental practice is different, and there are many things to bottom out before making an offer.
- Have you calculated the Adjusted EBITDA and run off a draft Year 1 forecast?
- Assess the debt capacity of the business before finalising your own investment.
- Will your forecast profit after your desired level of drawings meet the lenders’ serviceability hurdles?
We understand the debt market remains challenging and the range and depth of credit appetite is remarkably diverse. This is even more reason why engaging with an independent finance broker will really reap benefits.
Once you have done all the financial modelling your finance broker will be able to tender the funding to all the key players in the Healthcare Lending market. This will ensure the best possible fit with your requirements. These are just some of the reasons we always recommend our clients always Engage with a Finance Broker.
At Lily Head Dental Practice Sales we have access to an independent credit broker. They will undertake a very detailed analysis of the financial statements of a target business. They will work with you to build a credible profit forecast for the dental practice under your review. They can help you shape and present a persuasive funding proposal to a wide range of lenders. This will enable you to obtain the most competitive terms. They will also manage the satisfaction of the lender’s pre-conditions and manage the process through to drawdown.
Please Contact Us for more information on how we can help you fund your business future.