Together we are stronger

30 December 2009
Volume 26 · Issue 1

Chris Davies stresses the importance of dental specialists working to benefit clients.

Clients need to be able to trust that their professional advisers are working together.

 

We have all, at some point during our careers, taken a course of action we realise with hindsight was misguided and needed advice on how best to extricate ourselves from the position we found ourselves in. The likelihood is that we did not seek advice on the matter at the outset because we were not sure who to speak to and/or did not want to spend money on what we viewed as a straightforward matter.

The cost of rectifying the position will invariably be more than the advice that would have been provided at the outset, particularly if the only solution is to the sue the other party, or even worse you end up being sued.

I was once approached by a dentist client to look over some papers he had been presented with when purchasing some equipment. When the client came into the office with the papers I saw it was not only a contract to buy some equipment, but a contract to acquire a practice, take on 10 employees and enter into a 25 year lease. Since the principal was staying on in the practice following the sale, he didn’t fully appreciate the fact that he was buying the practice. Consequently, he had not discussed anything with an accountant.

Fortunately, he came in to see me before he signed anything and I introduced him to an experienced accountant. We managed to get a lender on board to get more favourable terms and renegotiated the terms of the contract. The lease which ensued from all these interventions resulted in a significant sum of money being saved by the client. I appreciate that situations like this are thankfully few and far between but it does highlight the need to seek appropriate advice as early as possible.

The client will often have a close relationship with one adviser, whether an accountant or lawyer, but not necessarily with anyone else. They will trust the adviser to look after their interests, guide them down the correct path and will trust their recommendations. Sometimes that recommendation will be to employ another professional specialising in the dental sector. An accountant will need to be sure that the lawyer to whom he is referring is able to properly represent the interests of their client, and the lawyer will need to have the same confidence in the accountant’s ability to advise dentists.

There are obviously a number of advisers and organisations who hold themselves out as being able to advise dentists, so how do we know we are referring our clients to creditable individuals? One method of giving your client some comfort would be to reassure them that the adviser to whom you are referring them is a member of Nasda.

Regardless of the matter in hand, whether it is discussing fee sharing agreements or practice purchases, the first step is to get everyone who is likely to be involved to attend the initial meeting.

As mentioned the client will have a relationship with one adviser and my suggestion would be that the meeting take place either at the adviser’s office or, if appropriate, at the dental practice to ensure the client is comfortable in the surroundings since he is going to be meeting other advisers for the first time. The client will appreciate the effort everyone has gone to in order to get to the meeting to save time and allow him to carry on with the business of looking after his own patients. The method will also cut down on the number of meetings needed if everything is discussed in detail at the first meeting.

The system is not just useful for advising clients in relation to sales or acquisitions of practices, but for all matters that will affect the dentist and his or her practice.

The dentist will invariably need advice on the benefits or otherwise of incorporation, partnership matters, employment matters, property issues, fee sharing arrangements and regulatory issues with the General Dental Council and the local health board or primary care trust, all of which could be raised in the first instance with the solicitor or the accountant.

The dentist will develop confidence in those advising him or her, their familiarity with dental issues will result in lower costs, and the dentist can spend less time in meetings with people like us and concentrate on treating their patients.

To contact Chris, call 01792 772 773 or email chris.davies@johncollins.co.uk. To find a Nasda accountant or solicitor in your area, visit www.nasda.org.uk