What would it take to unravel your practice?

By Rebecca Johnson, Dental Specialist Financial Planner at Wesleyan Financial Services…

Your dental practice is more than just a place of work, it's the result of years of education, tireless dedication, and considerable financial investment.

Like a beautifully woven tapestry, it’s taken time and skill to stitch together something strong, cohesive, and valuable. But all it takes is one loose thread — a single unexpected event — to begin unravelling the business legacy you’ve built.

In many practices, that thread starts to loosen when an unexpected crisis strikes, particularly when it involves the illness or death of a business partner or shareholder. Without a solid plan in place, those moments can quickly turn into confusion, legal disputes and threaten your practice’s continuity.

What if a partner dies or becomes seriously ill?

This isn’t a question most people like to dwell on, but if left unanswered, the situation can quickly snowball into complexity:

• Who inherits their share of the business?
• Can that share be sold — and who decides how, and to whom?
• Do you or the remaining partners have the right (and means) to buy it?
• What happens to their family — and who compensates them?

In the midst of dealing with loss, the last thing anyone wants is to face a legal or financial tangle. These are conversations and decisions that ideally need to be handled before a crisis, not during one.

Yet too often, dental partners find themselves without the right protections in place. Their partnership or shareholder agreement — if one exists at all — may be outdated, vague, or completely silent on fundamental issues.

The hidden dangers of an outdated or missing agreement

Without a clear, up-to-date agreement, you may be putting your business and your relationships at risk. Even long-standing partnerships can hit significant snags if expectations aren’t documented and agreed upon in advance.

Family members may have very different ideas about what should happen to a partner’s share to the remaining partner of the business. Disagreements over valuation, succession, or the sale of a stake in the business can create tension, delay decisions, and even damage the future of the practice itself.

And it’s not just about protecting the business. It’s about protecting the people who’ve made it possible — you, your partners, and your families.

Planning today prevents problems tomorrow

These challenges, while complex, can often be addressed with thoughtful preparation. Clear agreements and forward planning help ensure that even unexpected events don’t compromise the stability of your practice or the people connected to it.

Crucially, these agreements need to be underpinned with the right protections such as insurance policies or funding mechanisms so that what's written on paper can actually be carried out in practice.

With the right structures in place, ownership can remain in trusted hands, families can be fairly supported, and your practice can continue operating smoothly, even during difficult times. A well-prepared plan today is worth far more than the stress of untangling a crisis tomorrow.

Don’t wait for a crisis

It’s easy to put off these conversations. They’re uncomfortable and complex. But delaying them won’t make the risk go away, it only gives that loose thread more time to fray at the seams.

Ideally, practices should take time to sit down with a solicitor to review their current partnership or shareholder agreement, and seek separate specialist advice on the financial protections needed to support it. This step is essential to make sure that what’s agreed on paper can be put into action when it matters most.

Taking action now is a powerful way to protect what you've built — and to honour the trust and effort that every partner has invested in the practice.

Let’s make sure your legacy is tied together securely — and won’t come undone.

To start underpinning your partnership agreements with robust protection, you can start a conversation with a dental Specialist Financial Planner at Wesleyan Financial Services by visiting bit.ly/4ne6URf or calling 0808 149 9416.

Please note: Charges may apply. You will not be charged until you have agreed to the services you require and the associated costs. Learn more at www.wesleyan.co.uk/charges.

About Rebecca

Rebecca Johnson is a Dental Specialist Financial Planner at Wesleyan Financial Services, supporting dentists with the intricacies of financial planning from business succession and retirement exit strategies to commercial investments.

Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.