Top tips for purchasing a dental practice

The purchase of a practice is one of the most important financial decisions a dentist will ever make, and getting it right can provide a solid basis on which to start a new business.

There are a number of business models available, but there are different rules for the taxation of companies, for individuals and partnerships, so specialist advice must be taken in deciding the best vehicle for you.

Following the initial negotiations, an agreement may be reached regarding the main terms of the proposed purchase, however, any agreements or documentation should only ever be signed with the benefit of independent legal advice.

The most common form of funding a practice purchase is to borrow money from a financial institution, but capital can also be raised by way of equity funding.

It is also worth researching current government schemes and grants, as funding may be available in this way.

Remember that the most important issue when purchasing a practice is obtaining the right to occupy, be it via purchase of a freehold or a leasehold arrangement.

Being fully aware of potential consequences and obtaining good legal advice are paramount to a successful transaction. It is essential to know exactly what you are paying for, what your potential liabilities are and what the consequences of exiting can be at every stage of the process.

For more information or an informal chat withpout any obligation please contact Ray Goodman, Goodman Legal, Lawyers for Dentists on 0151 707 0090, email rng@goodmanlegal.co.uk or visit www.goodmanlegal.co.uk