Question 1

How do you value a GP practice with a GMS contract versus a PMS contract?

Accepted Answer

Valuing a GP practice requires a nuanced approach that goes far beyond simple revenue multiples. For a GMS (General Medical Services) contract practice the valuation is heavily influenced by the nationally agreed-upon funding formula which provides stability and predictability. We analyse your patient list size demographics and the ‘global sum’ allocation to project future earnings. For a PMS (Personal Medical Services) contract practice the valuation is more complex as these contracts are locally negotiated and can vary significantly. We conduct a deep dive into the specific terms of your PMS agreement looking at any enhanced services or locally commissioned services that provide additional income streams. Our valuation models for both contract types incorporate your CQC rating QOF (Quality and Outcomes Framework) performance and the value of your premises whether leased or owned to build a comprehensive and defensible valuation that stands up to buyer scrutiny.

Question 2

Will a buyer keep my existing staff and honour their terms?

Accepted Answer

This is one of the most common and important concerns for practice owners. The continuity of your team from your Practice Manager and salaried GPs to your nursing and reception staff is crucial for patient care and the ongoing success of the practice. We make it a priority to find buyers who recognise this. In most transactions the buyer will acquire the practice as a going concern and all staff will transfer under their existing terms and conditions of employment under the Transfer of Undertakings (Protection of Employment) Regulations 2006 more commonly known as TUPE. We specifically target acquirers who have a track record of retaining staff and investing in their development. During the due diligence process we facilitate discussions around the buyer’s intentions for the team and ensure these are clearly documented in the sale and purchase agreement giving you and your staff peace of mind.

Question 3

How do you maintain confidentiality during the sale process?

Accepted Answer

We understand that maintaining confidentiality is paramount. A breach of confidentiality can cause significant disruption to your practice leading to staff anxiety and patient uncertainty. Our entire process is designed to protect your anonymity. We begin by preparing a ‘blind’ profile of your practice which provides enough information to attract interest from potential buyers without revealing its identity. All interested parties are required to sign a legally binding Non-Disclosure Agreement (NDA) before any identifying information is released. We control the flow of all information and manage all communications with potential buyers so you don’t have to. Your practice’s name and location are only revealed to a small number of highly qualified and vetted buyers at a very late stage in the process ensuring that your business continues to operate as normal without any disruption.

Question 4

What happens with my CQC registration when I sell?

Accepted Answer

The transfer of CQC (Care Quality Commission) registration is a critical step in the sale of any GP practice. The process differs depending on the buyer and the structure of the deal. If the buyer is an existing registered provider they will need to apply to the CQC to vary their registration to add your practice as a new location. If the buyer is a new entity they will need to go through the full new provider registration process which can be lengthy. We provide expert guidance on this process from start to finish. We work with you and the buyer to prepare and submit the necessary applications ensuring that all required documentation is in order. Our goal is to ensure a seamless transition of registration with no gap in service provision. We manage the timeline and liaise with the CQC on your behalf to minimise delays and ensure that the transfer of ownership and regulatory approval are perfectly synchronised.

Question 5

Can I still sell if my practice is part of a Primary Care Network (PCN)?

Accepted Answer

Yes you can absolutely sell your practice if it is part of a PCN. In fact being part of a successful and well-run PCN can often enhance the value of your practice. Buyers are increasingly looking for practices that are integrated into the local health economy and can demonstrate collaborative working. The sale process will require careful consideration of your PCN agreement and the relationships with other member practices. We will review your PCN’s Directed Enhanced Service (DES) specifications and any local agreements to understand the obligations and opportunities that will transfer to the new owner. We will also manage communications with the PCN leadership to ensure a smooth transition. Our experience with PCN-based transactions allows us to position the benefits of your network membership to potential buyers highlighting the opportunities for at-scale service delivery and shared resources which can make your practice a more attractive acquisition target.

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