Interest rate rise – no winners, no losers?
The latest indication on likely interest rate movements from George Carney, Governor of the Bank of England, should reassure both dentists looking to buy a practice and those seeking to sell. The Governor has indicated that rates are unlikely to rise much before 2017 and even then not above 2 per cent – lower than before the 2008 banking crisis.
Dentists borrowing money to purchase a practice usually have their interest rate linked to the Bank of England base rate, which is currently an historically low 0.5 per cent. So what difference would a 1.5 per cent rate rise make to the average borrower? A dentist borrowing £300,000 over a 20-year period might typically expect to pay finance costs of approximately £21,100pa, based on a lending rate of 3 per cent above the Bank of England base rate of 0.5 per cent. A 1.5 per cent rise in the base rate would increase their finance costs to approximately £23,000pa. Is this enough to put off prospective buyers? Probably not.
Practice owners should likewise be reassured that demand won’t be affected by a lack of finance-ready buyers should they decide to sell.
Martyn Bradshaw, an independent financial adviser and director of PFM Dental, says: "Most likely the knock-on effect of interest rate rises on the practice sales market will be minimal."
For more information contact pfmdental on 0845 241 4480 or visit www.pfmdental.co.uk
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GDPUK Ltd announces sale of intellectual property to leading publisher Cogora Group
GDPUK Ltd today announces the sale of its intellectual property assets to Cogora Group, one of the UK's leading publishers of healthcare brands, events and educational platforms.
The decision to sell GDPUK’s intellectual property forms part of a considered transition to ensure the long‑term stewardship and development of the brand and associated assets. Cogora brings a wealth of experience and expertise to support the continued evolution of the dentistry brand within its wide portfolio of market-leading healthcare publications. Its award-winning titles include Pulse, a long‑standing and widely recognised source of political news and clinical education for GPs, Nursing in Practice, Management in Practice, The Pharmacist, Pulse PCN and Healthcare Leader, as well as two secondary care publications – Hospital Healthcare Europe and Hospital Pharmacy Europe. The purchase will cement Cogora as the biggest publisher of primary care titles in the UK and allow it to bring its expertise in providing news, analysis, opinion and groundbreaking stories to GDPUK, as well as continue giving dentists and dental staff a voice through its website.
“After careful consideration, we believe that Cogora is well positioned to take GDPUK’s intellectual property forward,” said Tony Jacobs, founder, editor and publisher of GDPUK.com . “This transaction provides continuity for the professional community associated with GDPUK and creates opportunities for future growth under experienced ownership.”
Tony will continue involvement in GDPUK on a consulting basis.
GDPUK Ltd has worked to ensure an orderly transfer of the intellectual property and wishes Cogora every success in its future development.