Christie & Co, has announced the sale of Cardonald Smiles in Glasgow.

Established from a squat in 2017, Cardonald Smiles is a Principal-led, two-surgery, NHS dental practice with over 1,400 registered patients located on Mosspark Drive, in the Cardonald area of Glasgow.

The practice was brought to market on behalf of the previous Principal, Dr Katrina Cumine, who sought to relinquish her management responsibilities and redirect her focus towards the clinical aspects of dentistry.

Following a confidential sales process with Joel Mannix at Christie & Co, the practice attracted a significant level of interest, resulting in five viewings and a closing date set with multiple offers received. It has been sold to independent buyer, Ravi Bains, who currently owns three practices across the wider Glasgow area.

Joel Mannix, Associate Director – Dental at Christie & Co, comments, “It has been a pleasure working with Dr Cumine throughout this process. I have no doubt that, under Dr Baines’ ownership, Cardonald Smiles will continue to thrive and provide excellent dental care to the Glasgow community.

“The dental practice sales market in the Glasgow area has recently experienced a remarkable upswing, particularly within the independent sector, with a noticeable surge in buyers’ interest and a significant increase in transactional activity. This trend showcases the enduring appeal of Glasgow as a thriving dental community, attracting both experienced practitioners like Dr Baines as well as enthusiastic new entrants. With a diverse pool of motivated buyers and a high level of activity, the market reflects a strong belief in the value of independent practices and the enduring importance of personalised, patient-centred care.”

Cardonald Smiles was sold for an undisclosed price.

Wishaw Dental Clinic is a two-surgery, mixed-income practice located in the North Lanarkshire town of Wishaw, approximately 15 miles from Glasgow and two miles from Motherwell.

In 2017, the practice was acquired by the outgoing Principals, Vipul Pawar and Shivani Singh, who promptly undertook a comprehensive refurbishment of the property. Since then, they have diligently worked to grow the business, successfully expanding its patient base to the current 2,800 patients that it serves today.

After five years of ownership, the Principals, who commuted from their home in West Lothian, made a strategic decision to sell the practice in order to reduce their commute and concentrate efforts on their other practices. 

Following a sales process with Joel Mannix at Christie & Co, Wishaw Dental Clinic has been purchased by a first-time buyer.

Joel Mannix, Associate Director – Dental at Christie & Co, comments, “When Vipul and Shivani contacted us to handle the sale of the practice, we quickly identified that a whole-of-market approach would best serve their specific requirements and lead to the most favourable outcome. I was pleased to have found a suitable buyer within two weeks of launching to the market, with the deal completing four months later. 

“At present, the Scottish market is witnessing significant engagement from first-time buyers and independent operators, who dominate the landscape, accounting for over 90 per cent of all transactions. Adopting a comprehensive whole-of-market approach becomes essential for achieving genuine market value, as opposed to making direct approaches to buyers who may also incur additional fees to agents. I extend my sincerest best wishes to Shivani and Vipul for all their future endeavours. Likewise, I wish the new owner every success as she takes the practice forward.”

Wishaw Dental Clinic was sold for an undisclosed price.

Specialist business property adviser, Christie & Co, has announced the sale of Cap City Dental in the heart of the City of London.

First established over 24 years ago by Dr George Druttman, Cap City Dental is a fully private, two-surgery practice, with scope for a third clinical room. Conveniently located for City worker access, as well as patients from further afield through the numerous nearby central London transport hubs, the practice offers a range of cosmetic, preventive and general dentistry, as well as inhalation-conscious sedation.

The practice originally occupied a location on London’s Cannon Street before successfully relocating to an impressive Grade II listed building in Austin Friars in 2022. The new premises were subject to a detailed design, high-quality, high-specification, comprehensive practice fit-out, which facilitated in such a successful re-location and on-going access to patient services.

Following a highly confidential sales process where a range of market interest was received, the practice has been sold to new owners, who bring synergies from existing operations in their wider group ownership, and who plan to take the practice through its next phase of growth and development. Dr Druttman will remain in a clinical capacity for a period post-sale.

Dr George Druttman, former owner of Cap City Dental, comments, “My small, highly personal private dental practice in the heart of the City of London has very successfully just completed its sale, with the requirements of both buyer and seller being completely ‘aligned’, thanks to the hard work and commitment from Steve at Christie & Co.”

Steve Darbon, Director – Medical at Christie & Co, who handled the sale, comments, “It has been a pleasure to work with George in the sale of his practice, and I am delighted that we have been able to assist in those plans. After many years of ownership, a dental practice sale such as this really does represent the culmination of a Principal’s hard work, commitment, and dedication, so I recognise it is a significant business and personal undertaking when considering a sale, and particularly following all the planning and resources required to undertake such a successful relocation as well. I am thrilled to have been involved in just a small part of that journey in practice ownership with George, Raya and the team at Cap City Dental, and wish them, and the new owners, the very best for the future.”

Cap City Dental was sold for an undisclosed price.

Specialist business property adviser, Christie & Co, has launched its Dental Market Review 2023 which offers a panoramic view of the UK dental business sector, spotlighting important areas, including sector ownership structures, evolving market dynamics, current pricing patterns, an insightful operational review, and an assessment of the current appetite of banks to lend to the sector.

SECTOR OWNERSHIP AND COMPOSITION

There has been a significant change in practice ownership amongst some of the larger operators, caused by mergers, acquisitions, and divestments since the broker’s 2022 review. Bolstered by the 2020 Use Classes Order modification, there’s been a surge in ‘squat’ openings, indicative of a robust demand trajectory in private dentistry. Currently, in the UK, there are around 12,600 dental practices with a diverse ownership matrix, which is still dominated by independents (62 per cent).

DEMAND & BUYER APPETITE

The repercussions of the September 2022 mini-budget, in particular the increase in the cost of capital, led numerous corporate operators to recalibrate, if not halt, their acquisition strategies. This caused a pronounced dip in market transaction volumes, accompanied by a marginal softening of EBITDA multiples in H1 2023.

Patient demand for general private dentistry remains resilient, offset slightly by a nuanced reduction in revenue, especially in elective specialist procedures, which are often linked to higher patient expenditure.

The market readjustment in H1 2023 bolstered the influx of fresh independent buyer inquiries at Christie & Co, with prospects drawn to the enhanced value propositions on offer. Concurrently, there’s been a marked uptick in emerging startups and dynamic ‘micro-corporates’ charting aggressive growth blueprints. Reaffirming the market’s vibrancy, seasoned dental operators who have greater confidence in the future performance of their existing businesses are, once again, seeking expansion opportunities.

Christie & Co’s buyer registrations grew by an impressive 12 per cent in 2022, and H1 2023 saw growth of a further 9 per cent. Notably, over a third of dental financing arranged through Christie Finance between July 2022 and July 2023 was for first-time buyers.

A key feature in the current market is undoubtedly escalating operational costs which, as a result, is leading various dental operators of scale to judiciously reassess their portfolios, culminating in strategic offloads. Such decisions can also stem from mega-mergers and ensuing directives from the Competition and Markets Authority (CMA). Although critics may hastily label such offloaded entities as ‘unsuccessful ventures,’ these practices garner significant demand. Invariably, these are acquired by astute independent operators, often with local knowledge and insight, who can inject vitality into both practices and teams. This transition bodes well for the dental community, bolstering both independent local and regional business ownership, as well as ensuring uninterrupted community access to vital dental services.

OPERATIONAL REVIEW AND SENTIMENT

In July 2023, Christie & Co interviewed a cross-section of dental operators, from prominent corporates to dynamic medium-sized entities, agile smaller groups, and independent practice leaders, to capture a holistic view of the industry sentiment.

The results were encouraging. When delving into the anticipated challenges for the dental workforce in the forthcoming year, a combined 90 per cent of respondents leaned towards positive or neutral sentiments. Specifically, an uplifting 45 per cent were optimistic while 45 per cent held balanced, neutral perspectives.

Exploring the views on NHS Dentistry in England, a cumulative 82 per cent of the respondents radiated either positive or neutral sentiments. A noteworthy 27 per cent expressed a positive view of NHS Dentistry.

Private dentistry, in particular, evoked vibrant positivity. Numerous operators highlighted expanding revenue streams, further exemplified by impressive growth rates, which ranged from 8 per cent to 13 per cent over the prior year. There was a unanimous sigh of relief as the post-lockdown appointment backlog has been effectively addressed, restoring operations to a more routine cadence. Furthermore, the industry feels empowered with the eased process of recruiting and retaining Associates, reinforcing an optimistic perspective on the future availability of qualified dental professionals.

THE FINANCE LANDSCAPE

In the first half of 2023, Christie Finance observed a surge in borrowing demand, heralded by both newcomers and veteran operators in the dental sector. Their investment decisions, steeped in long-term foresight, strategically factored in the evolving dynamics of borrowing costs. This burgeoning interest underscores not only the dental sector’s vitality but also the sustained trust and confidence vested by banking institutions and lenders keen on perpetuating their robust support to the sector.

Digging deeper into the numbers, Christie Finance highlighted that the average dental practice transaction during H1 2023 stood at £1,012,222. This translated to an average loan quantum of £981,611, facilitated at a competitive interest rate of 2.39 per cent.

Christie & Co’s latest report also includes a conversation with the esteemed Raj Rattan MBE and showcases a spotlight on its accomplishments in practice sales, culminating in a detailed case study highlighting its pivotal role in the landmark deal between Queensway Group and Dentex.

Paul Graham, Head of Dental at Christie & Co, comments, “Today, we present the culmination of our comprehensive research and expertise in our Dental Market Review 2023. This is not just a report; it’s a lens into the future of the UK dental business sector. Drawing insights from key stakeholders, we’ve delved deep into the intricate dynamics shaping the sector’s landscape. Our findings underscore a robust, positive trajectory for the dental sector. The resilience and agility demonstrated by industry leaders, even in the face of challenges, is truly commendable. We believe that the insights provided will pave the way for informed decision-making and strategic foresight. Our collaboration with the esteemed Raj Rattan MBE and our extensive involvement in monumental transactions, like the Queensway Group/Dentex deal, further solidifies our commitment to being at the forefront of the dental sector’s evolution.”

To read the full Dental Market Review 2023 report, visit:  https://www.christie.com/dental-market-review-2023/

Specialist business property adviser, Christie & Co, has announced the sale of Harborne Dental Practice in Birmingham.

This highly profitable, three-surgery, predominantly private dental practice is located in the affluent Birmingham suburb of Harborne. It was previously owned by Dr Kirsty Robinson and was brought to market to enable Kirsty to concentrate on her clinical dentistry and release the pressures of practice ownership.

Following a confidential sale process with Steve O’Connor at Christie & Co, the business has been purchased by Todays Dental, a fast-growing, national corporate group.

Dr Kirsty Robinson, former owner of Harborne Dental Practice, comments, “In seeking a buyer to take the practice to the next level, Todays Dental was the perfect fit for a number of reasons. Their ethos was one which truly aligned with mine – focusing on the happiness and care of the patients and team, some of whom I have worked with for over 25 years. They also offered an exciting and collaborative package, building and expanding on what we had achieved. Steve Williams, Acquisitions Director at the group, took time to address my concerns in our initial meetings and the Todays Dental team provided support and open communication as the sale progressed, resulting in a smooth and positive transaction.”

Steve Williams, Acquisitions Director at Todays Dental, comments, “Todays Dental is delighted to be partnering with the Harborne Dental team and excited to continue the same values and ethos already instilled within the practice. Kirsty’s passion for her patients and her team is extremely infectious and we are so privileged to have acquired such an amazing practice.”

Steve O’Connor, Associate Director – Dental at Christie & Co, comments, “It was a pleasure to act for Kirsty on the sale of Harborne Dental Practice. The amount of interest the practice generated is a testament to the hard work Kirsty has put in over the years, resulting in the practice having a wide appeal from individual purchasers, regional groups, and national corporates alike. I’m delighted that Kirsty was able to find an ideal buyer and I wish her and Todays Dental the very best.

“Despite the sector facing some headwinds, this sale further demonstrates that the demand for high-quality dental practices remains strong.”

Harborne Dental Practice was sold for an undisclosed price.

Specialist business property adviser, Christie & Co, has announced the sale of L.C. Milton BDS dental practice in Glasgow. 

Established in 1952, L.C. Milton BDS is a three-surgery, Principal-led NHS dental practice. The business is located on Barrhead Road in the popular residential area of Crookson, approximately six miles to the south-west of Glasgow city centre.

Principal Lindsay Milton purchased the practice in 1994 as a single surgery site. With the business enjoying significant growth, a second surgery was installed in 2004 and, a year later, Mr Milton was appointed as a Vocational Trainer and remained in this capacity until completion. In 2010, the premises was extended, again, to create a reception area, a local decontamination unit, as well as a third surgery, and an Associate also joined the practice to cope with rising patient demand.

Following a confidential sales process with Joel Mannix at Christie & Co, the practice has been purchased by experienced Associate and first-time buyer, Paul MacDonald.

Lindsay Milton, previous owner, comments, “Having purchased what was a single-handed practice in 1994, I extended the premises to create additional space for another two dentists and the practice grew accordingly. With close to 30 years of running the practice, the time seemed right to bring someone in with the motivation and fresh ideas to take things to the next level. Subsequently, I was delighted that Paul MacDonald shared my vision and with the help and hard work of Joel Mannix from Christie & Co, the sale was concluded in a smooth and professional manner.”

Paul MacDonald, new Principal, comments, “I am delighted to buy the practice from Mr Milton. I am very excited to develop the practice as MacDonald Dental, and look forward to continuing to serve the needs of our patients with the high-quality care and professionalism they have come to expect from Mr Milton. We have the capacity to recruit new NHS patients and will introduce sedation and implant services, and I will relish the opportunity to guide our team as we move the practice forward.”

Joel Mannix, Associate Director – Dental at Christie & Co, comments, “I am delighted to have successfully brokered the sale of this prominent dental practice in Glasgow. Lindsay Milton, the esteemed seller, has seamlessly passed the torch to Paul MacDonald, a dedicated dentist who shares Lindsay’s unwavering commitment to patient care and ethical dentistry. This transaction marks a significant milestone for both Lindsay and Paul, who have not only found a perfect match in terms of their professional aspirations but also share a deep alignment in their values and ethos. Lindsay’s dedication to providing exceptional dental services and fostering a compassionate environment perfectly resonated with Paul, making this transition a seamless and harmonious one. With Lindsay’s legacy in capable hands, we congratulate him on a successful chapter and welcome Paul as he embarks on this exciting new journey.

“Glasgow’s dental practice sales market has become a very popular offering, attracting numerous independent and first-time buyers eager to establish themselves in this thriving city, and practices like this one tend to stand out amidst the options due to the type of dentistry on offer.”

L.C. Milton BDS was sold for an undisclosed price.