Examining UK dental policy to support an M&A transaction

The client was considering the purchase of a dental asset but was aware that the level of government funding and regulatory intervention in the sector meant the asset was exposed to a significant level of political risk.

Thanks to our specialist knowledge of the dental sector, we advised that the biggest risks were from the implementation of the new dental contract in 2020, and the impact of Brexit on dental staff recruitment and retention and the mutual recognition of qualifications.

We also highlighted the potential government funding changes that could impact the business, as well as the chances of the regulatory burden on dental practices increasing.

The technical nature of the issues we need to explore meant we required access to key stakeholders with significant levels of frontline policy experience.

By utilising our extensive stakeholder network, we secured interviews with Dr John Milne (Senior National Dental Advisor, Quality Care Commission), Penny Whitehead (Head of Policy and Research, British Dental Association) and Sir Paul Beresford MP (Chair of the APPG on Dentistry and Oral Health).

Through evaluation and analysis of government statements on future dentistry funding allocations, we were able to provide insights into how funding decisions could impact the asset’s business model.

We were able to reassure the client that the structure of the new dentist contract was likely to represent an opportunity for the asset, thanks to its status as a high-quality provider with a number of clinics in its portfolio.

Through engagement with the British Dental Association (BDA) and other key stakeholders we were able to assure the client that, in either a deal or no-deal scenario, dentists with an EEA qualification would be able to work in the UK over the medium to long-term beyond 2020.

By identifying trends in government funding, we were able to inform the client that the asset would be well placed to take advantage of the likely increased demand for private dental care.