Practice Acquisition Finance
Buying a practice
is more than the price.
Goodwill, premises, equipment, stock, deferred terms and the cash you need after completion. We help structure the whole transaction before you approach the market.
The pressure
The deal is only the beginning.
A professional practice is usually valued on its income and goodwill rather than its physical assets. That shapes how lenders look at the purchase, how much of the price they will consider, and what they will want to see from the buyer.
Most acquisitions also carry costs beyond the headline price: professional fees, stock, a refit, new equipment, and the working capital needed to run the practice in the months after completion. Funding the price and leaving the rest to chance is how a good acquisition becomes a difficult first year.
What can be financed
The specific uses.
- 01 Goodwill Often the largest part of a practice price, with few tangible assets behind it.
- 02 Premises Buying the freehold alongside the business, or separately.
- 03 Equipment and fixtures The assets transferring with the practice, and any upgrades planned.
- 04 Stock Where the practice holds it, such as pharmacies and opticians.
- 05 Deferred consideration Later instalments due to the vendor, or replacing them with a single payment.
- 06 Working capital after completion Payroll, integration and the gap before income settles.
- 07 Run-off cover Where the seller’s PII run-off is part of the deal.
How it’s often structured
Structured around the practice.
Most practice acquisitions combine more than one element: a term loan for goodwill, a commercial mortgage where premises are included, asset finance for equipment, and sometimes a separate working capital facility. Vendor deferred consideration can reduce the amount needed on completion.
The right mix depends on the profession, the practice’s income, the buyer’s contribution and the timetable. Part of our role is working out which structure lenders are likely to support before you commit to heads of terms.
How we help
Not one lender. The right one for the deal.
High-street banks, specialist professions lenders, challenger banks and alternative funders all fund practice acquisitions, and each looks at goodwill, the buyer’s experience and the practice’s income differently.
We aren’t tied to any of them, and we have access to 300+ lenders across the market. We assess the acquisition, structure and present the case, approach suitable lenders and manage the process through to completion.
What lenders will want to see
What lenders will look at.
- The practice’s accounts, ideally for the last three years
- The agreed price, how it was reached, and any deferred terms
- Your experience in the profession and in running a practice
- Your own contribution to the purchase
- A forecast for the practice under your ownership
- For regulated professions, the regulatory position of the practice and the buyer
We help you pull this together and present it in the way lenders expect.
Who this is for
- Dental practicesFrom associate to owner, or your next site.
- Veterinary practicesBuy a practice or group and stay independent.
- AccountantsWhole practices, team and client base.
- SolicitorsA firm, a practice area or a retiring practitioner’s practice.
- PharmaciesA single pharmacy or an addition to a group.
- Funeral directorsAn established local business and its goodwill.
Questions
What firms usually ask.
How much will I need to put in myself?
It depends on the profession, the practice and the lender. Most lenders expect some contribution from the buyer, and deferred consideration from the vendor can reduce what is needed on day one. We’ll explain what’s likely before you make an offer.
When should we speak to you?
Before heads of terms if you can. The funding structure can affect what you offer and how the deal is timed.
Can I get a loan to buy a practice with no deposit?
Lenders usually expect some contribution from the buyer, the vendor or both, and how much depends on the lender, the profession and the practice. Deferred consideration or vendor finance can reduce what you need on day one. We explain what is realistic before you make an offer.
What do lenders look at when funding a practice acquisition?
Typically the practice’s accounts and earnings, how the price was reached, the goodwill and any premises, contracts such as NHS agreements, the buyer’s experience and the plan after completion. The British Business Bank publishes impartial guidance on business finance if you want background first.
Success stories
Practice Acquisitions in practice.
Funding an accountancy practice acquisition.
Read the story → £350k Representative funding scenarioFuneral home acquisition Funeral HomesFunding the acquisition of an established funeral home.
A family-owned funeral director wants to acquire another established local funeral business as part of its succession and growth strategy. Funding could potentially cover the elements below.
- Goodwill
- Business assets
- Vehicles
- Equipment
- Additional working capital following completion
Acquiring an established community pharmacy.
A pharmacist is acquiring an established community pharmacy and requires acquisition finance plus additional working capital following completion.
Explore finance →Let's talk
Buying a practice?
Talk it through before you make an offer.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.