practices4dentists is the creation of money4dentists, the Dental Practice Consultancy Service and leading independent financial advisers.

There have been significant changes in the dental practice market due to increasing amounts of selectivity among purchasers.

The economic downturn has resulted in limited growth prospects and realistic values and expectations are now vital in private dental practices. Purchasers are looking at the main points in assessing financial performance, for example, the business must demonstrate a solid track record and good profitability. However, many practices are resilient to the changes, particularly those offering family services. Specialist and cosmetic services, on the other hand, have been adversely affected as patients are delaying treatment or are looking for cheaper options.

Moreover, associates' expectations are being constrained by the new NHS dental contract introduced later this year. This will limit earning ability, forcing leading principals to offer lower percentages. Associates, therefore, are considering practice purchase more strongly as a career move to generate higher levels of income.

Professional agents will have increased importance in matching purchasers to vendors and in the presentations of businesses to prospective lenders.

Reader response number 54