Feeding frenzy for dental practices in SE England
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- Published: Friday, 10 April 2015 07:37
- Written by News Editor
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Private dental practices in the UK have been in the doldrums but show signs of picking up, according to the NASDAL quarterly goodwill survey. Alan Suggett, specialist dental accountant and a partner in UNW LLP said ‘it was still apparent that there was a 'feeding frenzy' for dental practices of all kinds in the South East – which he dubbed ‘London area lunacy’.
Private dental practice values are edging upwards according to a new quarterly goodwill survey by the National Association of Specialist Dental Accountants and Lawyers (NASDAL). The survey showed that there was an increase in the value of mixed and private practices at the same time as a decrease in the value of an NHS practice.
Private practices were sold for an average goodwill value of 90% of turnover so are still less attractive to purchasers than mixed or NHS practices – 134% and 128% respectively - but this figure was 2% higher than in the previous quarter and 13% higher than in April 2014. Meanwhile, the value of an NHS practice was significantly lower than in the previous quarters.
Deals on private practices were in a range between 53-134% of turnover whereas the range for an NHS practice was between 45% and 229% and for a mixed practice between 96%-195%.
Valuations prepared by professional valuers were, on average broadly similar to the agreed sale price, with the exception of mixed practices which generally fetch more than predicted. The average valuation figure for a mixed practice was 104% of turnover while actual sale transactions were 20% higher.
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