Dental Market ‘Returning To Normality’, Says NASDAL Survey
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- Published: Monday, 20 February 2023 08:32
- Written by Guy Tuggle
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The National Association of Specialist Dental Accountants and Lawyers - ‘NASDAL’ - has published the findings of its latest Goodwill Survey which covers the quarter ending 31st October 2022 & includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).
Key takeaways include the revelation that the quarter ‘saw a market that continued to thrive, albeit with a big difference in valuations and what practice sales are actually completing at. Overall, goodwill values were up to 141% as a percentage of gross fees - from 135%.’
NHS practices, despite operating under the constraints of a toxic contract (and grotesque access problems for the public), saw ‘a bounce with goodwill as a percentage of fee income up 20% to 152% from the previous quarter. Mixed practices were also on the up with goodwill as a percentage of income up to 143% from 126% in the quarter ending 31st July 2022’ according to NASDAL.
Private practices values were on the slide, however, with goodwill as a percentage of income at 135% of gross fees - down from 147% in the last quarter.
Mike Blenkharn, Head of Dental at UNW LLP who compiles the goodwill survey, said, “We have
definitely seen more deals happening in this quarter than the previous three or four.
I see this trend continuing and is a sign of a market is returning to more normal times. Although there was an NHS bounce, the number of sales was low compared to private and mixed practices. I would want to see further data before I came to any firm conclusions.”
Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer said,
“The practice sales market is still healthy but in my experience, I am now seeing a number of
practices ‘sticking’ on the market for longer than one might expect.
They are perfectly healthy from a financial perspective but perhaps the appetite of buyers, geography or other factors are at play here” said Minford.
The goodwill figures are collated from accountant and lawyer members of NASDAL in order to give a
useful guide to the practice sales market. These figures relate to the quarter ending 31st October 2022.
Editor’s Note:
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.
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