GDPUK.com - Bigger practices with NHS contracts still command higher values

Bigger practices with NHS contracts still command higher values

Details: Published: Monday, 25 March 2013 09:03; Written by News Editor; Hits: 1286

Alan Suggett reported the latest NASDAL goodwill survey showed the dental practice sales market is still strong with no sign of the impending changes to NHS contractual arrangements having any impact on values. He said that in the build-up to the introduction of the 2006 contract, dental practice sales slowed down dramatically . By contrast, the latest figures show that the market is still active and NHS and mixed practices in most areas are still sought after.

Alan continued: ‘For instance, some highly profitable NHS practices with fee income of more than £500,000 are selling to corporates for 200% of goodwill, or more. If the fee income is under £500,000, goodwill is more likely to be around 100% with interest more likely to be from private buyers or smaller corporates.’

Private practices, especially those whose patients are not part of a plan, continue to experience lower values, he said, as they are not attractive to corporates and banks are less willing to lend to buyers. In the latest NASDAL goodwill survey, for the quarter culminating January 2013, average private practice was selling for 88% of turn-over.

He stressed that the picture was variable and there are still some practices which do not sell through lack of interest from buyers so they are not included in the NASDAL survey.

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Bigger practices with NHS contracts still command higher values

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