Luke Moore considers the changing demand for dental practices.
We’ve all had to adapt to a new way of life in the face of a global pandemic. Although the Covid-19 vaccination programme is progressing at an unprecedented rate in the UK, the return to normality remains a long road to walk. Even when we reach this journey’s end, many of the changes brought about by the pandemic and adopted out of necessity are likely to remain. These changes are already influencing the dental practice market to some extent. In my experience, there has been a noticeable shift in purchasing patterns, with an increasing number of buyers favouring suburban over traditionally popular, city-based practices, including those in London.
It is thought that this is an existing trend that has been accelerated by the effects of the pandemic. Social distancing guidelines and concerns around being in close proximity to a high-density population have certainly made the idea of investing in a practice beyond the city that much more appealing for some dentists. However, other factors may be influencing practice purchase decisions. For instance, there is greater public interest in shopping for goods and services closer to home, based on a desire to support local businesses during these economically challenging times and to minimise travel outside of the immediate area.
Similarly, many people are looking to shorten or eliminate their commute to work altogether and avoid the need to travel into a city. Indeed, the measures that have been implemented to limit the spread of Covid-19 – including regional and national lockdowns – have made it much easier to reap the benefits of more flexible working arrangements, such as working from home wherever possible. Of course, the nature of dentistry is such that home working is only available to dental professionals in a limited capacity, if at all. However, digital technology has enabled dental teams to carry out more patient consultations and treatment monitoring remotely, catering to the desires of patients.
Digital technology has also enhanced communication with dental technicians, reducing the importance of geographic locations for effective collaboration to take place. Furthermore, remote working enables clinicians to see more patients in order to reduce the current backlog owing to the current inability to treat a high number of patients face-to-face in practice each day. The opportunities that come with remote working may further fuel ambitions to purchase a practice in suburban or rural locations, especially as some buyers are looking to achieve a better work-life balance.
Investing in a practice located outside of the city can also facilitate greater access to green spaces for exercise and entertainment purposes, which has become even more important to maintaining a good quality of life. Another factor that could play into practice purchase decisions is affordability. Not only is the difference in the cost of living and running a business in a city compared to the countryside often significant, but also the price of a practice in popular cities is likely to be much higher than those in rural areas.
Competition for practices in London, especially, has historically been very fierce. Some buyers may now look beyond the city, given that they could potentially get more bang for their buck with a suburban practice. This is not to say that citybased practices are not still highly desirable – current market trends simply indicate that the price of practices in suburban or rural areas could increase with demand in the future. For those looking to sell, this is a chance to market to a larger pool of potential buyers.
Traditionally, less appetite for rural practices may have narrowed the search when seeking a buyer – the opposite is true with greater interest in suburban life among many dental professionals. No matter what type of practice you are seeking or taking to market, specialist advisers, such as those at Dental Elite, can offer support to ensure a smooth and efficient transaction.
There’s no doubt that the Covid-19 crisis has fundamentally changed the way we live, providing a reason for many people to rethink and refocus on their priorities, especially when it comes to work. This is as true for dentistry as any other industry, with many associates realising there are definite financial and lifestyle benefits to be reaped from investing in their own practice, particularly outside of busy, crowded cities. Nevertheless, utilising the knowledge and experience of an expert in dental practice sales and acquisitions is important if both buyers and vendors are to secure the best possible deal within an ever-evolving market.