Why Now is the Time to Sell Your Dental Practice Before Dropping the NHS Contract

If you own a dental practice that still includes NHS services, you've likely felt the pressure of a rapidly changing industry. With fewer associates willing to service NHS patients, many practices are considering dropping the NHS element altogether. However, before making that shift, now might be the perfect time to consider selling your practice. Here's why acting sooner rather than later could make all the difference.

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NHS Dental Services are Becoming Harder to Sustain

The dental industry is facing a well-documented shortage of associates willing to take on NHS work. The reasons are varied—ranging from lower remuneration rates to increased administrative burdens—making the NHS element less attractive for many dental professionals. As a result, more practice owners are considering moving towards private-only services.

But here's the catch: the more practices that drop their NHS contracts, the more difficult it becomes for those still offering NHS services to find and retain associates. This creates a snowball effect, where everyone rushes to shed their NHS obligations, potentially leading to a market flooded with practices looking to make similar changes.

A Shift Towards a Private-Only Market Will Impact Practice Values

Currently, practices offering a mix of NHS and private services hold a certain value in the market. NHS contracts can still be seen as a guaranteed income stream, despite the challenges in maintaining them. However, as more practices make the switch to private-only models, the market dynamics are bound to change.

When numerous practices drop their NHS elements, it creates an oversupply of private-only practices, putting buyers in a stronger position. This shift could drive down practice values, making it more challenging to sell your business at the price it currently commands.

Seize the Opportunity in a Changing Market

Now is the time to take action if you’re contemplating selling your dental practice. Starting the process now, before the mass exodus from NHS contracts, allows you to market your business as one of the few practices with an NHS component still in place. This makes your practice more attractive to buyers who may see the NHS contract as a unique selling point or an opportunity for diversification.

Selling a Practice Takes Time

Remember, selling a dental practice is not an immediate process. It involves valuations, negotiations, and finding the right buyer who aligns with your patient's needs and your business values. Starting this journey now means you can maximise your practice's value before the market becomes saturated with private-only practices.

Don't Get Caught in the Rush to Go Private

The landscape of dental practice ownership is changing fast. The trend of associates turning away from NHS work is likely to continue, pushing more practices to go private. By taking steps to sell your practice now, you avoid the rush and put yourself in a position to benefit from the current market conditions.

Need Help Planning Your Next Move? We’re Here for You.

At Retiring Dentist, we specialise in the sale and acquisition of dental practices. We understand the complexities of the market and will work with you to ensure you get the best possible outcome. Don’t wait for the market to become saturated—contact us today to start planning your future.