How a chance conversation reaped a £685k windfall

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  Posted by: Dental Design      6th December 2023

Dentist Manhar Segal reveals the benefits of specialist guidance in a practice sale that ultimately transformed his life

It is almost two decades since the concept of dentists with a special interest (DwSI) was introduced by Raman Bedi, the then Chief Dental Officer for England. The move aimed to give patients direct access to specialised care, bypassing hospital referrals. These practitioners, now known as dentists with enhanced skills (DES), provide more complex treatments beyond general dentistry, bridging the gap between GDPs and specialists. This year, the GDC updated its specialist list curricula, and the regulator now recognises 13 categories of specialist. As a result of a more focused delivery of dentistry, high-quality, specialised care continues to thrive.

However, there’s an interesting paradox at play: Dentists often overlook the importance of specialisation beyond their own field. For any practice owner considering the sale of their business, opting not to involve a specialised agent can potentially endanger the success of any deal. As dentist Manhar Segal found out almost to his cost when a chance conversation averted the likelihood of him missing out on an extra £685,000 in the sale of his practice. But let’s rewind…

Watch Manhar tell his story here:

 

Manhar’s journey started with a serendipitous encounter with fellow student Aradhna during their first week of dental school at Guy’s & St Thomas’ in London. The pair fell in love, eventually graduating in 1996 with a shared ambition – to build their own dental practice. By November 1999, married and keen to move forward with their plan, their dream was realised when Aradhna texted Manhar: ‘I found it, this is the one’. The ‘one’ was a run-down shop on the bustling main thoroughfare in the market town of Cheadle in Staffordshire. Where others might have seen dilapidation, they saw practice potential.

On 4 April 2000, they opened the doors to the aptly named Millennium Dentistry, a small three-surgery practice and their beloved ‘first baby’. Manhar recalls: ‘It was bright, colourful and captured the town’s attention.’

Expanding to five surgeries as the practice thrived, this was a significant milestone filled with ‘blood, sweat, and tears’. It was also a chapter that ignited thoughts about their long-term plans. Eager to relinquish the reins of their business but keen to continue treating their loyal patients, Manhar and Aradhna began their quest to transition to the next stage of their careers. They explored various agencies, but this proved challenging. ‘To say it was a minefield would not be an understatement; it was a significant understatement,’ Manhar says.

The first agency they approached was a ‘jack-of-all-trades and a specialist of none’. The second claimed expertise, but the couple were disappointed when the specialist agency failed to maintain communication despite a promising start and favourable valuations. Manhar and Aradhna also approached individuals, but some seemed ‘more the type of person looking to get a good deal on a second-hand car than take over a business and a livelihood,’ recalls Manhar. And that’s when the penny dropped – specialist knowledge was vital.

With the experience so far leaving them disappointed and, more importantly, without a sale, the road ahead seemed uncertain – until a serendipitous encounter changed everything. Invited by Frank Taylor & Associates (FTA) to a motor event, supercar-mad Manhar met Andy Acton. Andy had also harnessed the new millennium as a fresh start – co-acquiring FTA with Chris Strevens in 2000. Since then, FTA has grown into a business with a name that’s synonymous with dental practice acquisition, valuation, development and sales. And so Manhar shared with Andy the experience of trying to sell his practice. Long story short, Andy presented him with a well-structured plan for a potential practice sale – ‘right down to the last penny’, Manhar says. ‘It wasn’t a number plucked out of the air; it was a science.’

Andy’s comprehensive approach garnered immediate and positive feedback from potential buyers, contrasting the couple’s previous experiences. Eventually, they met a buyer ideally suited to their plans, the practice’s ethos and reputation, its staff and, most importantly, their patients.

With the business soon under capable leadership, an unexpected consequence emerged – the new principal shared Manhar’s enthusiasm for fast cars, and the pair are now best mates. From a business perspective, the couple enjoyed a windfall of £685,000 more than a previous offer they had received from a corporate entity through a different agent. It was a win-win on many levels.

‘If it was £700, that’s neither here nor there, but when it is knocking on £700k, that’s different. We could have thrown away the jewel in our crown – our first baby that we created. I still get a chill down my spine when I think of the road we could have gone down had we accepted,’ he recalls with horror.

‘The sharks out there would have eaten us alive, and it would be a very different story had I not had the FTA team of specialists guiding us with their invaluable advice so we could achieve that sale.’

This watershed moment has gifted the couple freedom – both financially and in terms of time. Still only in their 50s and having re-calibrated their work-life balance, there is much to do. Manhar says: ‘Selling Millennium has given us a tremendous amount of quality time with our family – especially our daughter, who has severe learning disabilities and cannot communicate effectively. You can see in her eyes her inner peace now that she has mum and dad’s full attention.

‘At work, we are completely focused clinically, which is a positive. I now practise four days a week, and many patients have remarked that they can see the difference in us.’

Following the sale in 2022, Manhar and Aradhna have since joined forces with a partner to embark on a couple of new business ventures, further diversifying their portfolio. One involves a salary access scheme, allowing employees to free up some of their earned wages without excessive interest charges. There is, he says, a hint of philanthropy in the venture. Focused primarily on SMEs, the app helps people better manage their money by allowing them to draw down up to 50% of earned income. It costs employees £1.69 to access, but there are no additional costs for businesses.

‘It is designed to help employees plan for the unexpected. It’s accessible and affordable, and the app is linked to various government finance advice pages. It empowers them with the knowledge and the practical help they need to make ends meet and gives them access to their money without resorting to credit or loan sharks. The upside for employers is that it helps them retain staff. Money management is stressful and can impact mental health and employee productivity, so it helps to reduce time off, too.’

The second project involves acquiring a historic structure in the charming coastal town of Paignton in Devon, intending to transform it into affordable housing. Their goal is to breathe new life into this venerable building, all while meeting the pressing demand in the local community for housing and urban renewal.

Had he remained a principal, none of this would have been possible. ‘But now we can fly and spread our wings into other areas,’ Manhar says. The journey from a modest dental practice to these exciting new horizons is an inspiring example of what can be achieved with determination, resilience and a vision for a better future. But it also required specialist help.

‘I liken it to any clinical situation,’ says Manhar. ‘I need to offer the best care for my patients, but should they require treatment beyond my expertise, I advise they see a specialist. Any great customer experience also requires a team effort. FTA provided both of these.’

Clearly, that chance meeting turned out to be a fortunate – and pivotal – moment in their lives.

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