Sale and purchase of dental practices: just another hurdle?

Dental transactions are unlike most other business transfers, with a unique regulatory and contractual framework complicating the normal approach. It is common knowledge to those in the business of dealing with the sale and purchase of dental practices that there are one or two hurdles to jump, the most important of which is the effective transfer of the interest in a GDS contract.

It has been noted that in recent times dental transactions are taking longer to complete. This has been due to a combination of meeting bank criteria and a change to the normal process adopted for CQC applications, created by NHS England.

It is common, in advance of the sale and purchase of a dental practice which has the benefit of a GDS contract, for the parties to enter into a partnership in advance of completion. The effect is that the GDS contract will be left to reside with the incoming partner following completion of the sale, and resignation of the outgoing partner…

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