You have read the Sales Memorandum and received the financial statements. You may have also met the vendor and undertaken a weekend viewing.
Now you need to satisfy yourself that the sums add-up and that as owner-manager you can grow fee income and generate sufficient profits to earn a satisfactory return on your investment after finance costs.
There is also the important task of securing a competitive finance offer in sufficient time to back your bid and selecting a Bank who will help deliver the transaction.
Whether you are a first time operator making your first practice purchase or an experienced owner looking to grow your business by acquisition, Lily Head Finance can provide the support you need to answer these important questions.
Our Practice Finance Consultant will look at the practice objectively. Taking account of lenders preferences for practice type, tenure and location we will also review the local demographic, competition and a number of other factors influencing the Bank’s decision to lend. We will then assess the debt capacity of the business taking into account what we know about the lenders serviceability tests and your plans for operating the business.
Lily Head Finance has strong relationships with all the main High Street Banks and other specialist healthcare lenders who are currently active in the dental acquisition market. We will tender your finance requirement to ensure that you are able to make an informed choice from the range of competitive funding offers.
Using the agent’s prospectus and background research on the internet and other publicly accessible resources we can look at the practice through the lens of the lender and provide pointers on both the positive and potentially negative features of the target practice and what questions you might want to pose to the vendor in the knowledge that the lenders are likely to be asking those same questions. The financial statements of the target business will be analysed to highlight the key determinants of bottom-line profit and identify any extraordinary items or non-recurring costs. We will present you with an adjusted EBITDA calculation that will be acceptable to lenders as a platform for assessing serviceability of your required level of funding.
If you decide to make an offer for a dental practice and this is accepted, then you will need to demonstrate availability of funding. Lily Head Finance offers a quick and comprehensive alternative to the often long and frustrating process of trying to find a High Street lender who understands the dental sector and then someone on their team who has the experience to obtain an underwritten credit offer within the required timescale.
Once you have decided on the amount of your investment and the funding required we will draft a detailed Proposal Document presenting your professional and personal background, an assessment of the target practice and your strategy for the business. We will present this to potential lenders on your behalf and deal with their questions and requests for further information.
We circulate the Proposal Document to a group of lenders known for their specialist expertise in this sector and to whom we regularly introduce prospective clients. We will deal with their questions and any requests for further information. We have strong relationships with all the key lenders in this sector and can source the most competitive terms.
Once we have received and collated feedback on the proposal we will present you with a detailed matrix which summarises the various offers we have received so that you can make an informed choice of funding partner.
Once you are in receipt of a Credit-Backed Funding Offer we will help you collect together any further information required ahead of drawdown and assist in managing the satisfaction of any pre-drawdown terms and conditions. This part of the process does often require intensive management to ensure momentum is maintained and you are in position to complete the transaction.
Our support continues beyond the transaction and we will be available by phone or email to answer any queries or respond to any further opportunities that might present themselves as you build the business. We can source asset finance for equipment, fixtures & fittings and soft-refurbishment.