Dental market ‘vibrant and competitive’
The UK dental market comprises around 12,344 practices, 12.4 per cent of which are owned by the four top groups – MyDentist, BUPA Dental, PortmanDentex and Rodericks Dental – a decrease of 0.6 per cent from the previous year.
Last year was characterised by a strategic shift towards divestiture, culminating in a 3.3 per cent contraction in corporate ownership of practices, said Christie & Co in its Dental Market Review 2024 published in July. The divestment trend facilitated a transition of ownership, predominantly towards independent buyers.
The sector continues to be largely independent, with 65 per cent of practices owned by independent single or dual practices, which, said the business property adviser, “underscores the resilience and entrepreneurial spirit within UK dentistry – despite the ongoing headwinds.”
This early momentum suggests an optimistic outlook for the remainder of the year
Joel Mannix
Transaction volumes surged by 150 per cent in agreed transactions and exchanges during the latter half of 2023, and a 29 per cent decrease in transaction timelines, with the time taken from offer accepted to exchange moving from 283 days before 2023 to 201 days in 2023.
Christie & Co noted that its deals completed at an average of 13 per cent above asking price and there was a year-on-year increase in the overall number of offers received, which soared by more than 80 per cent to approximately 600 in the second half of 2023.
The appetite from the independent first-time buyer and existing owner segment continues to recognise
an even spread in demand for all practice types and revenue mix in 2024. Appetite for private or private-led mixed practices from small groups has also remained consistent.
Joel Mannix, head of dental at Christie & Co, said: “As we continue to navigate 2024, the dental market is already exhibiting signs of a significant uptick in activity, surpassing the previous year’s patterns.
“This early momentum suggests an optimistic outlook for the remainder of the year, underscoring a dynamic shift towards a more vibrant and competitive market landscape.
“This is being driven, in part, through newer market opportunities, including new emerging buyers, as well as reignited transactional activity that was delayed or paused, particularly on the larger scale opportunities in 2023.”
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