Deferred consideration in the current market

When selling a dental practice, there are many intricacies to manage, and the process can be challenging. Vendors must ensure the process complies with regulatory frameworks, and they have to consider the welfare of their patients and staff. Realistically, many larger sales will involve negotiation of terms around deferred consideration, which involves accepting a percentage of the value of the practice on day one and deferring the remaining payments – usually over a period of around two to five years – after completion. Advice from specialists in dental mergers and acquisitions is vital to help the vendor think through and manage all the logistics around the sale.

In the current climate, more often than not, a dental practice valued at £2m or above is likely to be sold with some deferred consideration. The deferred amount could be a fixed sum to be paid after an agreed time frame, but more typically, it is linked to practice performance after completion of the sale.