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.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“I wouldn’t hesitate to recommend them to other business owners looking for funding.”
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
What is practice acquisition finance?
Practice acquisition finance is borrowing to buy a professional practice, firm or client book. It can cover the goodwill, which is often most of the price, plus premises, equipment, stock, deferred consideration and working capital after completion. As a whole-of-market broker, we structure the whole transaction and approach lenders who understand how practices are valued.
What is professional practice finance?
Professional practice finance is lending to dental, veterinary, medical, legal, accountancy and other professional practices, assessed on the practice’s fee or patient income rather than mainly on its property. It covers buying a practice, partner buy-ins, premises, equipment, tax and working capital, and as a whole-of-market broker we search the market for lenders who understand how practices earn.
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.
“It allowed me to concentrate on my business while they found me the most competitive business loan.”
- 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.
For the rates lenders on our panel publish for each part of a purchase, see what practice purchase finance costs.
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 search the whole of the market. We assess the acquisition, structure and present the case, approach suitable lenders and manage the process through to completion.
Want a feel for the numbers first? Try our practice purchase loan calculator.
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
Practice acquisition finance by profession
Acquisition finance for each profession
Lenders look at the same core points in every practice purchase, but the detail differs by profession: NHS contracts in dentistry and pharmacy, client books in accountancy and advice, WIP and run-off cover in law, and partner capital and premises in GP practices.
- Dental practice loans: goodwill, NHS and private income, equipment and surgeries
- Veterinary practice loans: independent buyers, diagnostics and premises
- Accountancy practice loans: fee blocks, whole practices and deferred consideration
- Solicitor practice loans: firms, practice areas, WIP and run-off cover
- Pharmacy loans: goodwill, stock and the NHS change of ownership
- GP and medical practice loans: mergers, partner capital and premises
- Optician practice finance, funeral director finance, advisory firm finance and every other profession
Pharmacy acquisition finance
Pharmacy purchases are priced largely on goodwill and dispensing income, the stock has to be funded on completion and the NHS change of ownership runs alongside the finance. See pharmacy loans and acquisition finance for how lenders assess them.
Ready to compare options? Get instant quotes for a practice purchase, or talk the deal through before heads of terms.
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.
Is acquisition finance different for dental, veterinary and accountancy practices?
The structure is similar, a term loan for goodwill with separate funding for premises, equipment and working capital, but lenders focus on different things: the NHS and private mix in dentistry, client loyalty and the clinical team in veterinary practices, and recurring fees and retention in accountancy. See the pages for dental, veterinary and accountancy practice loans.
What are practice loans?
Practice loans are business loans for professional practices, assessed on how the practice earns. They can be secured or unsecured, and are used for acquisitions, buy-ins, premises, equipment, tax and working capital. You can get instant quotes to compare options.
Success stories
Practice Acquisitions in practice.
In our clients’ words
“Simon has raised a large level of funds for me on numerous occasions to assist me in the growth of my business through acquisition. He has never let me down when many others have, and I’m always amazed how he comes up with funding so quickly and efficiently.”
Knowledge Hub
Read the guides.
Buying a Professional Practice: Every Cost You Need to Fund
A cross-profession checklist of what you need to fund when buying a law, accountancy, vet, pharmacy, optician, funeral, medical or architects’ practice, and the order to arrange it in.
Read the guide →Buying a Dental Practice: A Finance Guide for Buyers
A practical guide to funding a dental practice purchase: how the NHS and private income mix affects lenders, the approvals involved, and the order to put the finance together.
Read the guide →Fee Block Finance: How Accountancy and Advisory Practices Fund Buying a Client Book
A practical guide to financing a fee block purchase: how deals are priced and structured, what lenders look at, and how to protect cash flow while the clients bed in.
Read the guide →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.
