Investment Evaluation on Setting up a Dental Practice in the UK

Authors: Montalvao, D.

Editors: Fairclough, D.

Conference: Hertfordshire Business School, University of Hertfordshire


Most dentists intend to run their own business at some point of their careers. However, the business of dentistry is highly complex and competitive, requiring a considerable amount of investment and risk taking from the inexperienced dentist entrepreneur. With the increasingly faster deployment of technology, dentists must be prepared to continuously invest on their development, new equipment and modern facilities, before they lose their source of competitive advantage and their patient base.

The aims of this project are to find the best conditions for a medical dentist to acquire an existing dental business in the UK, by valuating the business and reducing financial and operating risks. At the same time, a preliminary investigation on strategy and marketing is delivered, so that risks are mitigated. Within these aims, the objectives are grouped under three fundamental pillars: investment, strategy and marketing, with an emphasises on financial issues.

The business valuation is mainly based on cash flow forecasts and common accounting ratios, but does not exclude other non-financial indicators identified from both primary and secondary research methods. For example, the analysis has taken into consideration global and local growth expectations, the importance of a marketing strategy, the business financials (such as the balance sheet and the income statement), the reduction of the operational gearing, the identification of relevant bargaining areas and an exit plan.

Finally, the whole findings are summarised with a set of conclusions and recommendations, so that the client can make an informed judgement based on the available data and results.

Source: Manual