Unlocking Success: The Samera Boot Camps for Start-Up Dental Practices

Establishing a successful dental practice involves more than just clinical expertise; it requires a comprehensive understanding of business management, financial strategies, and effective marketing. Recognizing this need, Samera, a leading firm specializing in healthcare business consulting, has been organizing highly successful boot camps tailored specifically for start-up dental practices. These boot camps have garnered a reputation for being transformative, equipping budding dental entrepreneurs with the tools and knowledge needed to thrive in the competitive healthcare industry. 

A Holistic Approach to Dental Practice Management: 

Samera’s boot camps stand out due to their holistic approach. They cover a wide spectrum of crucial aspects essential for the success of a dental practice. From navigating complex financial landscapes to implementing effective marketing strategies and ensuring compliance with regulations, participants gain a comprehensive understanding of the multifaceted nature of dental practice management.

Expert-Led Sessions: 

One of the key features of the Samera Boot Camps is the involvement of industry experts who bring their wealth of knowledge and experience to the table. These sessions are led by professionals well-versed in dentistry, finance, marketing, legalities, and technology. Participants have the invaluable opportunity to learn from these experts, gaining insights and practical advice that can be directly applied to their practices. 

Practical Insights and Case Studies:

The boot camps not only offer theoretical knowledge but also delve into real-world scenarios through case studies. Practical insights shared during these sessions empower attendees to understand challenges, strategize solutions, and implement best practices effectively.

Networking and Collaboration:

Apart from the structured sessions, the boot camps facilitate networking opportunities among participants. This environment fosters collaboration, allowing attendees to learn from each other’s experiences, share insights, and build a network of like-minded professionals. The collaborative spirit nurtured during these events often extends beyond the boot camp, creating ongoing support systems among attendees.

Success Stories:

Over the years, the Samera Boot Camps have witnessed numerous success stories. Many participants have implemented the strategies learned during the boot camps, resulting in thriving dental practices. These success stories are a testament to the effectiveness and impact of the knowledge imparted during the sessions.

Conclusion:

Samera’s commitment to empowering start-up dental practices through these highly successful boot camps has significantly contributed to the success of numerous dental entrepreneurs. By offering a comprehensive understanding of business management, financial strategies, and effective marketing within the dental industry, these boot camps have become an invaluable resource for those embarking on their entrepreneurial journey in dentistry. 

For aspiring dental professionals seeking to establish their practices on a strong foundation of business acumen and industry expertise, the Samera Boot Camps stand as a beacon of guidance and success, fostering the growth and prosperity of start-up dental practices across the industry. 

Samera Shortlisted for the Dental Industry Awards

We are (again) delighted to announce that we have been nominated for awards recognising excellence in the dental industry – this time in 4 categories! 

The Dental Industry Awards have shortlisted Samera in 4 categories, out of a record-breaking number of entries. 

Samera have been shortlisted to win awards for: 

  • Website of Year 
  • Dental Industry Event of the Year (Setting up in Practice Bootcamp)
  • Event of the Year (Setting up in Practice Bootcamp)
  • COVID-19 Response

We are immensely proud that our hard work over the last 1 or 2 has been recognised in the industry and we think this reflects the effort we have put in and all that we have accomplished for and with our clients. 

If you want to find out what makes Samera worthy of being award-nominated then contact us today or book a call with our team at a time that suits you. 

Samera at the Dentistry Show London

We were delighted to attend the Dentistry Show London this year. As key players in the dentistry game, the DSL event highlighted the changes that have occurred in the industry post-pandemic. Our team of industry experts attended to share their extensive knowledge and experience of finance solutions for the dental profession. 

Dentistry is bouncing back

What we noticed from the event is the dental industry is bouncing back with a vengeance. There is an enormous demand for practices to start up again. However, at the same time, there is a lot of uncertainty regarding issues such as suppliers and inflation (to name a few). 

To our surprise, this year’s show has been the busiest show in London to date. The turnout this year helped all those in the dental community come together and discuss the exciting future of what is to come for the dental industry. 

Samera’s own client’s relations manager, Jyoti Randhawa, hosted her own talk during the event about how to start your dental practice, starting your practice right now and the many special and specific ways Samera can help your vision for your dental practice come to life. 

Samera’s Dental Buying Group

If you weren’t there you may have missed the wider launch of Samera’s ever-so-popular ‘Buying Group’. This group was created by Samera to allow smaller, independent practices to band together and benefit from the buying power and negotiating leverage of a large dental group and gain access to exclusive discounts on dental equipment. 

We also want to make sure that all the money saving tips and tricks we have picked up over the years are shared with all our clients. This group has ensured that all the years we have had in the dental industry are put to good use, by actively saving our clients money and allowing smaller dental practices to actively compete against larger corporations. Sign up to see how much the Buying Group can save you today. 

Time to switch from NHS to private?

Other popular sessions included Les Jones’ lecture on why right now might be the perfect time to transition from NHS to private dentistry. He made a very compelling argument and offered many attending delegates a lot of useful advice on how to make the change as successful as possible. 

After the pandemic this was a great first event back in the game. There was a great mix of exhibits and talks and Samera is very grateful to have been part of it. A few of our team were also a bit too grateful for the freebies being given out. Heads up, the Bellini’s were great! 

Trust dental experts to put on a great event paired with great water bottles for the gym, immeasurable (and maybe slightly hypocritical) amounts of chocolates, and an open bar! 

What to take away from the event

What we have learnt from the events that have occured over the past few years is that life is about being happy and healthy, but it has become increasingly evident that a lot of dentists are not happy. Dentistry is still a great profession and a very rewarding industry to be a part of, however, it is undoubtedly stressful and dentists need to be able to manage their stress better. That is where Samera comes in.

Our trained in-house experts ensure that whether you are looking for an accountant, looking for a practice, finding financing or even looking to extend a current practice, the process is carried out as smoothly and stress-free as possible. 

The dental industry is definitely bouncing back from the effects of Covid-19. The demand for dental services is increasing a lot, which means this is a great time to start your own practice. Don’t let the continuing unprecedented times derail your plans. With the right experts by your side, we can assure that this will be the best decision you will make. 

If you need help with any aspect of your dental practice, Samera has 20 years of experience in the industry. With a wealth of knowledge and a plethora of the right contacts at their fingertips, our team can help you with anything you need today. 

We look forward to seeing you all again next year. 

Sign up for one of our business training events

Sign up now for any of our live events or webinars, designed to teach healthcare providers how to build a better business.

We run a mixture free and paid online webinars covering everything from compliance and marketing to accounts, tax and raising finance, as well as live events like our start-up bootcamps or finance workshops.

Check out our events calendar to see which of our webinars, courses or bootcamps is right for you.

Help India Breathe

As I am sure most of you are aware, India is in the midst of a medical crisis. Hospitals are overwhelmed, oxygen is running out and the death toll is climbing rapidly.  

After speaking to many of my relatives in India on Whatsapp, I strongly felt that we had to do whatever we could to help.  

That is why we have set up a GoFundMe page for Help India Breathe. 

By donating whatever amount you can spare, you will be helping to fund medical equipment, food and other vital supplies for a country in crisis. 

As many of our clients have family and friends in India, I know this will be close to many people’s hearts and we are hoping to be able to raise enough to make a real difference and prevent as many needless deaths as possible. 

We have strong connections in India to ensure that the funds are managed appropriately and where they will make the most difference. 

Help us send oxygen to India 

All funds raised in the UK will be used to purchase equipment such as Oxygen and related equipment in the UK. No money is being sent to India, the equipment is shipped direct to the NGO’s in India. 

We are identifying small local charities and NGO’s that are requiring oxygen equipment – NOT large organisations and charities which have layers of admin and bureaucracy. 

Donate now to Help India Breathe 

All of this means that no funds leave the UK and also ensures that the people who need the oxygen equipment get it as quickly as possible. 

Much of the news has been focused on the main cities of Delhi and Mumbai, but as my cousin in Mumbai told me, it’s the smaller towns and villages with little infrastructure that really need help. 

Sadly, this is just the beginning, and is a crisis that won’t disappear quickly. India cannot be isolated, and they need our help.

Please donate and help where you can – Thank you!

You have raised over £20,000!

14th May 2021

We have hit £20000

Thanks to your fantastic donations we have managed to raise over £20,000 for Help India Breathe. We are excited to announce that the first batch of oxygen concentrators have arrived in India and are going towards helping the people who truly need it.

We want to sincerely thank you all again for your support and donations, we have been truly humbled by all of the support this initiative has received.

15 Oxygen Concentrators Have Arrived in India

11th May 2021

Your donations have gone towards the purchase of 15 oxygen concentrators, which have arrived safely in India and are currently being distributed to those who need it most.

We want to say an enormous ‘thank you!’ to everyone who has supported us to make this possible.

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You have raised over £10,000! 

30th April 2021

We have hit £10000

We want to say a massive ‘Thank you!’ to everyone who has donated so far – you have helped us raise over £10,000 already! That money has already gone towards 15 Philips Oxygen Concentrators, we are currently liaising with our partners in India to send these out as soon as possible. We will be providing updates as soon as they have been shipped and arrived.

If you haven’t already, please Help India Breathe by donating whatever you can to help an entire nation in crisis.  We still have a long way to go to reach our goal of £100,000!

2021’s Budget Impact on UK Dentists

We have reviewed yesterday’s budget and have provides some further detail, along with our own viewpoints on the announcement and its impact on the UK’s dentists.

There are some significant changes which will play out over the coming months and years. In addition, it does look like things have been made more complex by the new introduction of both some old and new concepts into the tax system.

We’re here to help, so get in touch!

Corporate Tax Announcements from the Budget

Increase in Corporation Tax rates

  • The Chancellor in his Budget recognised that business has benefited from unprecedented support during the Coronavirus. In the spirit of fairness, it therefore recognises the role that business have in repaying the historical borrowing costs, by raising the level of corporation tax from 19% to 25% from 1 April 2023.
  • This higher rate will apply where company profits are in excess of £250,000, with the low rate of 19% being retained for those with profits under £50,000. For those companies with profits between £50,000 and £250,000, there will be marginal relief applying to bridge the gap between the lower and upper limits.
  • These limits will be divided by the number of associated companies; in other words, where one company controls another or both are under the same control. This associated company definition is also going to replace the 51% group company test previously used to identify which companies are required to pay tax by quarterly instalment. This may well increase the number of companies being required to pay tax by instalment and the cash flow impact of this will need to be considered.

Samera’s Viewpoint

This is a return to the days of pre-2014, when multiple rates of corporation tax was last in use. However, the level at which the higher rates apply is much lower (£250,000) compared with £1,500,000 back in 2014. 

This means that more companies will be drawn into paying the higher rate of corporation tax, than in 2014. This will make it increasingly difficult to predict future corporation taxes.

Temporary extension to carry back of trading losses for Corporation Tax

  • This is a welcomed cash-flow benefit for all companies and unincorporated businesses that may now be able carry back losses, that have arisen recently due to reduced demand for their goods and services, to earlier years. The current rules are restricted to only offsetting losses to the previous 12 months profits.
  • The measure applies to companies with accounting periods ending in the period 1 April 2020 to 31 March 2022, and for tax years 2020/21 and 2021/22 for unincorporated businesses. 
  • The effect of the measure will to be extend the period for which the trading loss can be carried back against earlier profits and will be extended from the current one year element to a period of three years, with losses being carried back against later years first.
  • Although there are no restrictions on the amount of the loss to be carried back to the previous year, there will be restrictions on the amount of losses to be carried back to the earlier two years, where a £2m cap will apply for each of the two year periods to 31 March 2022. The £2m cap will apply to groups, where the limit will be shared, and this will need to considered in detail and the submission of a formal allocation statement. There are also measures introduced to allow certain loss carry backs to be claimed outside the company tax return.

Samera’s Viewpoint

This is a welcome cash boost to taxpayers whose profits may have been fundamentally impacted by the COVID-19, which could provide an immediate cash-flow injection. 

However, the measure also introduced more complexity to SME’s in managing their tax affairs with the interaction of the cash-flow boost, impact on R&D claims they may have made and the fact that there is now a small company corporation tax rate.

Super-deduction for companies investing in new plant and machinery

  • The Chancellor has announced a new tax deduction aimed to stimulate investment by UK companies.
  • Between 1 April 2021 and 31 March 2023, companies will be able to claim a corporation tax deduction at 130% of qualifying expenditure. This has not been extended to unincorporated businesses, or other structures such as LLPs.
  • This measure only applies to main rate pool assets, but 50% deduction also announced for expenditure on most new assets that would ordinarily qualify for 6% special rate pool.
  • Although this is a welcome announcement, , the complexity is in the small print. This measure, in particular, is a super-complex super-deduction. 
  • Further complexities arise where assets are sold having previously benefitted from the super-deduction.
  • Timing for expenditure is going to be key. Whilst we would encourage companies to delay expenditure until April, contracts entered into before 3 March will not benefit from the super deduction even if the date of the expenditure is delayed.
  • Whilst the rate of super deduction does not appear to be affected if expenditure is incurred in accounting periods which straddle 1 April 2021, the rate of deduction is reduced for periods straddling 1 April 2023. It may be worth considering changes to accounting periods to mitigate a loss in the deduction if expenditure is planned to be significant in late 2022 or early 2023.
  • Additional conditions will be imposed on expenditure on assets acquired under hire purchase or similar contracts.

Samera’s Viewpoint

From a cash flow perspective the benefit of the enhanced deduction, whilst welcome, will not be felt until the company is due to pay its corporation tax liability. This again introduces increased complexity to the tax system which will make it harder for SME’s to plan.

Temporary increase in Annual Investment Allowance

  • There was confirmation that the Annual Investment Allowance will increase from £200,000 to £1m from 1 January 2021, for expenditure on plant and machinery incurred during the year ended 31 December 2021.
  • This is another boost for businesses who will be able to obtain a 100% tax deduct when they invest in plant and machinery. 

This temporary increase together with the announcement of the super deduction, could play an important factor to help kick-start business investment, and may also attract foreign companies to invest in the UK.

Personal Tax and Private Client Announcements from the Budget

Self-employed grants for the newly self-employed in 2019/20

  • This group of individuals missed grant funding when COVID-19 hit, as they had no proof with HMRC that they were self-employed.
  • Provided their self-assessment returns for 2019/20 have now been filed, these individuals can now claim the 4th and 5th grants. 
  • 4th grant covers period from February until April, available from late April and 5th grant covers May until September, to be claimed from late July.
  • 4th grant available will be 80% of three months’ average profits, capped at £7,500 paid out in a single payment. 
  • Final grant will be based on a turnover test, so more targeted. Those whose turnover has dropped by at least 30% will be eligible to claim up to 80% of a three month average trading profit, but those whose turnover has not dropped as much will only be eligible to claim 30%, capped at £2,850.   
  • It has been confirmed that grants are taxable in the year in which they are received.
  • As this is taxable income, possible knock-on effects are that it should be pensionable income, but could also impact on things like the clawback of child benefit.
  • Finally some support for a group of people who fell into no man’s land from March last year. 

Temporary extension to carry back of trading losses for Income Tax

  • Trading losses made by unincorporated business in tax years 2020/21 and 2021/22 will be eligible for loss carry back relief.
  • The losses can be carried back against the profits of the same trade for a period of three years instead of the usual one year period.
  • A £2m cap will apply to the extended carry back of losses for each tax year.
  • With temporary closure of businesses during the national lockdowns, this measure could prove to be an additional lifeline for some unincorporated businesses to obtain tax repayments from prior years to ease cash flow.

Capital Gains Tax (CGT) – Annual Exempt Amount will remain at current level to April 2026

  • There will be no increase or reduction in the tax-free amount for Capital Gains Tax from the current level until April 2026. There was considerable speculation this may change but this has not occurred as yet.
  • This annual tax-free amount will therefore remain at £12,300 for individuals, personal representatives and some Trusts and £6,150 for all other Trusts.
  • Private clients are now in a position to carefully consider their assets in the round to make decisions when selling their assets or passing their wealth on to the wider family.

Stamp Duty Land Tax (SDLT) – extension to the temporary SDLT holiday

  • Up to the end of June 2021 there will be no SDLT on the first £500,000 for purchases of homes in England and Northern Ireland, where this is the purchaser’s sole residence. The 3% surcharge will remain in place if this will not be the purchaser’s only residential property or if the purchaser is a company.
  • From 1 July to the end of September 2021 the holiday amount reduces to £250,000.
  • Importantly both the new dates of the end of June and September are ‘cliff edges’ so a purchase must be completed to take advantage of the SDLT holiday.
  • This is not only a great boost for those people seeking to get onto the property ladder, especially in conjunction with the news that 95% LTV mortgages will soon be available again, but also good news for those looking to move.
  • In addition to this, for those people with a personally held rental property portfolio it extends the timeframe to consider whether incorporating their property business is worthwhile whilst there is not a punitive upfront SDLT charge to doing so.      

Inheritance tax – nil rate band frozen

  • The Chancellor did not announce any changes for IHT other than to freeze the nil rate band of £325,000 and residence nil rate band of £175,000 until April 2026. The nil rate band has now been frozen at the same level since 6 April 2009, resulting in increasing numbers of estates being brought within IHT, particularly in London and the South East. This measure is expected to raise £985m and highlights the need to take timely advice.
  • We may see further announcements as part of “Tax Day” on 23 March 2021, particularly regarding simplification of lifetime gifts and the interaction of IHT with Capital Gains Tax.

Employment Tax announcements from the Budget

Extension of furlough arrangements

  • Scheme extended to 30 September 2021.
  • Currently employer claims 80% of reference pay.
  • Employer will be required to contribute 10% from 1 July 2021, and 20% for August 2021 and September 2021 (with the employees still receiving 80%).

Samera’s Viewpoint

This measure will ensure employees are no worse off than currently but will increase the cost burden for the business as the scheme winds down to 30 September 2021. 

National Living Wage changes

  • From April 2021, NLW will increase by 2.2% to £8.91 per hour.
  • This was previously for workers aged 25 and over, but now it will apply to workers aged 23 and over.
  • This will add to employer costs which may inadvertently impact jobs.

Samera’s Viewpoint

Again this is an extension to bring further employees within scope in the 23-25 age range.

Further Information on Accounts & Tax

Our team of specialist accountants and tax experts can help manage, process and structure your business’s finances. From management accounts and payroll & pensions to tax planning and cash flow management, we can take care of the full back-office function of your business.

Book a free, no-obligation consultation with one of the team to find out how we can make your accounts & tax easier, quicker and cheaper.

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook and Instagram.

Rishi Sunak’s Budget Update

The Dental Business Guide Podcast Episode | 3rd March 2021
Arun Mehra

Good afternoon. It’s Arun Mehra here on the 3rd March from the Dental Business Guide and I’ll be talking to you about the budget that was announced earlier today by Rishi Sunak. Now, there was a lot of expectation around this budget, with various bits of information being leaked before the budget. But now more details have emerged today and I’m just going to give you a quick summary of the key points that I think affect the dental sector in particular.

As more information comes out, I will be sharing more information on our websites and maybe on this podcast as well. 

So firstly, in respect to the Coronavirus support that’s available from the government – certainly furlough has been extended until the end of September and the government will continue paying 80% of employees salaries for the hours they cannot work.

Employers will have to then also contribute 10% in July and 20% in August and September. So, as we expected, this is something that will help businesses generally for people who’ve got people on furlough, which will pay for them. In addition, support for self employed will also be extended until September.

Now interestingly, I think we are coming out of this pandemic, by the end of June, hopefully, when all the restrictions will be lifted. But this is going to go to the end of September as businesses will reopen. So that, I guess, is a positive sign. 

Now in terms of the state of the economy, and generally about the finances, we saw the economy shrink by about 10% in 2020. There is an expectation of it to rebound. And the Treasury’s hoping in 2021, the annual growth rate will be around 4%, which will hopefully then grow even beyond that after 2021. 

Current borrowing at the moment just out of interest is around £234 billion for the period 2021-22.

Now, the all important area of taxation. I know a lot of our clients are always interested to understand what’s the impact on them, on their personal taxes, on their personal take home pay. There’s been no changes to the rates of income tax, National Insurance, or even VAT. The personal income tax allowance has been frozen at the current rate at 12,570 from 2022 all the way to 2026.

However, that’s likely to change I guess, as we go along – that’s a long time away to happen. In addition, high-rate income tax threshold has also been frozen at 50,270 until 2026 as well.

The area that has changed (and this is a significant) area is that corporation tax will be changing. So by 2023, the highest rate of corporation tax will be 25%. Now, what does that really mean? I suppose there’s a kind of a taper here. So that the companies that are earning a lower rate of tax will still be taxed at 19%. And that’s the vast majority of companies and those companies who are earning under 50,000 pounds a year. But companies who have a high profitability, they’re tapered up to the rate of 25%. So anyone earning in excess of profits of 250,000 pounds, I believe, will be taxed at 25%.

In addition on the tax side of things, the stamp duty holiday on house purchases in England and Northern Ireland had been extended to June, which was kind of what we expected as well. And there will be no changes on inheritance tax or lifetime pension allowances, or even capital gains tax – because I know there was a lot of concern about capital gains tax changing. And an entrepreneur’s relief perhaps being removed – that has not happened thus far in this budget.

And then I suppose finally some other aspects on the business side of things is government really wants to encourage business. That’s what kind of the message I got from this, whether it will have the impact of what it desires – that’s another story. But one of the things he’s trying to do is encourage people to invest in equipment, invest in infrastructure, invest in new items.

They’re saying if for instance, you’ve invested 10,000 pounds in equipment, you’ll be able to get 130% of that, 13,000 pounds worth of that, as a deduction in your tax bill. So that’s a huge incentive. If you’ve got to kit out a dental clinic or business, you’re doing a new surgery, there’s a huge investment opportunity or a tax opportunity to reduce your tax bill as well.

In addition, there’s the other area to look at – business rates. The holiday for that continues in England until June with, 75% discount after that. 

So, I suppose in summary, we are in a pandemic, still, I think they’ve tried to minimise the impact of tax rises on income tax personal, especially individual.

Inevitably, there will have to be some tax rises, that’s going to impact the larger corporates in a couple of years time.

I guess we will see and hopefully we will grow back. One last thing I haven’t mentioned is they want to encourage and train people in more business knowledge, business acumen to help businesses grow on the digital front and also in just general management side of things as well. 

So some new incentives and new schemes that are being launched there today, which are worth looking for. And you can find out about those on gov.uk/helptogrow

So in summary, an interesting budget. I suppose there will be some deductions and benefits for businesses out there. It’s good that income tax hasn’t risen. Corporate tax will be impacting on the larger businesses in a few years time.

Hopefully, this will encourage the economy to grow and to get back on its feet post pandemic. Now if you have any questions on this or want further detail, get in touch with me via the samera.co.uk website and I look forward to hearing from you soon. Okay, and check out our next podcast soon.

Further Information on Accounts & Tax

Our team of specialist accountants and tax experts can help manage, process and structure your business’s finances. From management accounts and payroll & pensions to tax planning and cash flow management, we can take care of the full back-office function of your business.

Book a free, no-obligation consultation with one of the team to find out how we can make your accounts & tax easier, quicker and cheaper.

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook and Instagram.

Team Development – Berlin 2018

Team Samera Hits Berlin

Last week, six of us, Max, Nigel, Jules, Edel, Farisa and Arun hit Berlin for some team bonding.

Despite the freezing temperatures, we warmed ourselves up with plenty of currywurst, beer, wiener schnitzel, and some more currywurst!

Away from our normal routine, we had a lot of fun, but did a bit of work too!! Always good to get to know your team members away from the office – we find it helps build a stronger bond and team!

Arun wants to open a Berlin office (it’s right up his street), anyone want to get involved?    

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Brexit for Dentists

The Initial Reactions

Despite the mixed feelings about Brexit for dentists, we are on our way to exiting the EU.

The initial reactions were pretty considerable, and the drop in the pound value has not shown any sign of a strong recovery – yet. Dropping from a pre-brexit value of around $1.55 to around $1.31 as I write this guide.
The appointment of a new prime minister, whilst helping ease the uncertainty, is only the first of many changes we can expect to see over the next couple of years.

We expect many changes to arise as the UK exit’s the EU, some will be imposed whilst others will have to be negotiated with our European counterparts.

Almost all small businesses will be impacted by Brexit, but rather than consider Brexit as a disaster, I would urge you to look for the opportunities, as I anticipate there will be many for those shrewd and sharp enough to find and seize them.

Now more than ever, Darwin’s theory of evolution applies to those going through Brexit.

“It is not the strongest or the smartest that will survive, but those that can handle change.”

Following this section are some points to consider when trying to grow your business in this fast changing economic environment.

The Squeeze on Margins

One of the immediate effects of Brexit has been the weakness of the pound.
Overnight the cost of purchasing anything not denominated in sterling has increased by approximately 15%.

Whether it be a dental chair, materials, overseas laboratory costs, it is likely that if you are buying direct from overseas you may have seen an impact immediately. If you are buying from a UK based company who imports such items, whilst a price rise may not have occurred yet, if the pound stays at such levels, it is quite likely that prices for items you purchase which are imported in to the UK will rise.

The question you then have is, do you absorb the costs and accept a reduced margin or pass the increase onto customers. In the short term it is likely that you may be able to absorb the cost rises, however, longer term these cost rises may need to be passed on via price rises to customers.

I feel the impact on margins and profits will vary from practice to practice, so please seek advice from our team if you need to discuss a suitable strategy.

Growth

Whilst fear maybe perpetuated by the press, this is not something you, as a business owner should yield to.

You may feel it is safer to sit on your hands and not spend and wait for things to happen, but invariably your smarter competitors may see this as an opportunity.

My advice, is review your future investments, perhaps cut back on some but most definitely go forward with some gusto to keep growing your business.

For those that keep a focus on growth, I am pretty certain that they will be winners out of the changes Brexit brings to the UK economy.

Building a business made out of bricks and not hay

Brexit brings an opportunity to strengthen your business and perhaps change to the differing economic conditions. I would urge you to sit down with your advisors and think about what you need to change and focus your efforts on.

Higher value cosmetic treatments may not be the thing to market, but in fact run of the mill high quality general family dentistry. Your patients maybe feeling the pinch, so re-design your offerings so people still want to come and visit your practice, ensuring a regular stream of income in your practice.

Leaders are made not born

I am a huge advocate of taking the bull by the horns. Your patients, your team may feel worried, it is your opportunity to lead from the front and lead them to a positive future, one that is promising, exciting and one that shows you care for them.

Whilst you may feel this time of change is challenging, your leadership skills are now needed more than ever to show others the path.

In times like these, you may need to make some difficult decisions, and be decisive. This is your opportunity to shine, and take your business forward.

Planning for the changes

The press have already reported some larger businesses are already looking to move some or all of their operations to mainland Europe.

However, for most small businesses, including Dental practices, this is not a choice you have – I cannot imagine most of your patients flying to Spain to come and see you!

As a business leader in these times, you will need to continuously adapt to the many changes occurring, the changing regulation, administration and fluctuating markets – in such times you will need to be stoic, agile and most definitely demonstrate true British resilience even in the face of adversity.
Now more than ever, a stiff upper lip is needed.

Protecting your team

In the last few years, we have seen many EU and non-EU migrants enter the Dental workforce – Dentists, as well as Dental care professionals. Many of the larger Dental corporates rely heavily on EU national dentists too.
In my small team alone, I have team members from across the world, something that makes a great working and team environment.

In my opinion, this is one of the huge benefits of running a business in the UK. Without my team, my business would not be where it is today, likewise, many of our clients value their teams enormously and go out of their way to protect them and their livelihoods. I have yet to meet a business owner that does not take their responsibility lightly when it comes to ensuring their team are paid and looked after each month.

Don’t forget, people are what make a business.

Whilst it may be a little while until we know what the changes of status will be for those EU nationals living and working in the UK, I think we should refrain from any knee jerk reactions.

Economic changes

Without doubt, the UK economy has already been impacted by Brexit. The housing market has stalled with the number of transactions occurring dropping significantly, and the weakening of the pound has seen overseas companies look to buy good quality businesses in the UK on the cheap – for example Arm Holdings.

The most recent recession of 2008 is pretty clear in most business owners minds, so most owners will feel they have a pretty good idea of what they need to do in these times. Being prepared, confident and leading on the front foot will be what most business owners will need to be doing.

The Bank of England’s recent drop in interest rates to 0.25% above base rate is an unprecedented act to try and stimulate the UK economy. It’s quite likely that we may get a further cut to try and stimulate the economy further.

In addition, the Autumn statement from new chancellor will in my opinion, be less pro –enterprise, so some tax rises may well be there.

Planning an exit – Is it time to sell your business?

I have always advocated, always be ready to sell your business. Whilst some people may want to grow their business further in these times of change, it may also be an opportunity for others to seek new pastures and sell their business.

Your personal circumstances may change, or someone may come knocking at your door with an offer you cannot refuse, or the changes likely from Brexit may be an opportune time for you to think about hanging up the drill.

This maybe the perfect time to sell your dental practice. The key will be to get your house in order, and plan how you are going to maximize the sales value of your business.

If selling is something you are considering then seek advice from our Practice Sales Experts.

Your Brexit Strategy

Procrastinating and waiting for what will happen is not a strategy we advocate.

Being proactive with your team and clients is key in this environment, rather than waiting to see what happens. We have listed a few key action points we think you should consider in light of Brexit:

  • Safeguard your team members and inspire them to success

Your team are critical to your success. Helping them in these changing times will reap rewards in a massive way. Lead them in the direction you want to take and inspire them to help you achieve your business goals.

  • Manage the red tape

One of the key reason’s cited to leave the EU was the red tape. Whilst in the short term we expect this to actually rise, we would recommend you are fully in compliance with all legislation and you have a plan to manage the many changes we expect to see.

  • Put a growth plan together

Review your performance, see what has been working thus far in your business, then write down some specific goals you want to achieve, and put a simple actionable business plan of what you are going to do to achieve those goals.

  • Review all agreements and funding

This is a perfect time to review all agreements in place, and your current financing arrangements. As interest rates fall, it is quite likely you could re-negotiate better terms for financing.

  • Embrace the change

The vote has happened, and there is no turning back, so embrace the changes Brexit brings. Your emotional state and attitude play the largest part in success in business, make sure yours is strong, and ready to face the changes.

Brexit for dentists: How we can help

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Are Dental Practice Values falling?

Back in 2007 I was heading the Merger and Acquisitions campaign for a growing dental body corporate. Our acquisitions pipeline had an average deal completion price of 104% of turnover.

We grew the business from 80 to 132 practices in 3 ½ years, until merging the business with a larger corporate in 2011.

In the following years, across all groups, the average deal completion price compared to the percentage of turnover grew to around 160%. In the last year our average sales prices at Samera Practice Sales was 148%.

Prices have peaked

We feel that prices have peaked this year and are already showing signs of dropping in the remainder of 2017.

Corporate slowdown in buying activity, recruitment issues and the Brexit effect on European dentists (17% of GDC registered dentists) seem to be some of the major issues.

However, in the last 6 weeks alone we have talked to at least 6 new dental groups coming together, forming to pursue a buy and build project.

Dental groups will pay top end prices

These new groups are prepared to pay the top end of the price range for their initial buy and build projects.

Whilst we are working with some of these groups, we are also working with many individual Associate Dentists seeking to acquire their first practice.

Associates – Dental Associate Buyers Service

Through our Buyer Registration service, we are helping Dentists identify practices to buy, securing the purchase and then helping them fund them. We have a growing number of Associates joining this service.

Practice Owners – Is it the right time to sell?

Are Dental Practice Values falling?

Although confidence remains relatively high, we do feel that valuations are on a downward trend hopefully not to the levels of 2007!

So if you are considering an exit in the next few years, we feel it is prudent to get organised now, as in many of the deals we are currently structuring our selling clients are locking in their value now.

Sell your Dental Practice with Samera

If you’re thinking about selling your dental practice then Samera can help make sure that you find the right buyer and the best price for your business. If you want to get the best price possible when you sell your dental practice, you need to build the value and grow the revenue to ensure you get the best return on your investment.

Book your free consultation to find out how you can grow the value of your practice before you sell.

More on Selling a Dental Practice

For more information please check out the articles and webinars in the selling a dental practice section of our Learning Centre, like our guide on How to Sell a Dental Practice in 9 Steps.

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

New NHS Contracts, the impact on valuations

Changes in the NHS

It is becoming more of a prospect that change is going to come in dentistry, possibly in 2-3 years and in a way of new NHS contracts.

Principals who own NHS dental practices are currently facing uncertainty as to what the future Contracts will look like in terms of remuneration, with a proposed way of capitation and UDAs, however out of all the prototypes from Type A and Type B, it is obvious that there is going to be a greater importance given to oral health assessment and patient care. Clearly a positive change or improvement for patients in certain areas, but what does this mean in relation to valuations and dental market activity?

Dental Market Activity

In terms of dental market activity, we don’t see how the contract reform could have an impact as there are approximately 700 practices for sale per year and there are in excess of 3,000 active buyers.

We at Samera have 3,476 active registered buyers, so demand is still outstripping supply by a considerable amount and dentistry will always be a necessity.

What changes can possibly impact the valuation or attractiveness of dental practices?

Impacts on Valuations

The obvious detrimental change would be if open ended contract’s (GDS) were to become time limited (PDS). This factor could be a deterrent for some investors or buyers. There is also some discussion around averaging the value of UDAs to the national average of £25, so UDAs value of £28, £29 etc would be penalised.

We are as we explained, possibly still a couple of years away from any reform, however any principals planning to sell or retire should consider doing so now to avoid potential uncertainty.

Contact us for a free and non-committal valuation report.

Further information on new NHS contracts

For more information on new NHS contracts, contact us today to speak to our expert team.

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.