Goodwill value falls to 84% of turnover
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- Published: Tuesday, 15 March 2011 22:42
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| Goodwill as a percentage of fee income for sales was 84 per cent and for valuations it stood at 90 per cent according to the latest survey by the National Association of Specialist Dental Accountants (NASDA). This compares with nearly 100 per cent this time last year. There was no significant difference on the location of the practice or whether it was mainly private or NHS. |
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Alan reported that enthusiasm for NHS practices remained high whilst private practices in some areas are harder to sell.
The Chairman of NASDA Lawyers’ Group, Ray Goodman presented a brief report on significant issues affecting dentists buying or selling dental practices. NASDA lawyers are finding, he said, that: 1. The dental practice sale market is still buoyant despite many uncertainties
2. Lenders/banks are more demanding and are requiring 10-15 year leases on dental practices which are not owned outright and also asking for security on larger loans
3. Early signs are that the CQC is going to be pragmatic over practice sales and registration of new owners.
800x600 Normal 0 false false false EN-GB X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; font-size:10.0pt;"Times New Roman","serif";} Alan Suggett, a member of the technical committee of NASDA presented the latest results from their quarterly Goodwill survey of valuations and deals at a press briefing. For the most recent quarter, ending in January of this year, Goodwill as a percentage of fee income for sales was 84 per cent and for valuations it stood at 90 per cent.
Alan reported that enthusiasm for NHS practices remained high whilst private practices in some areas are harder to sell.
The Chairman of NASDA Lawyers’ Group, Ray Goodman presented a brief report on significant issues affecting dentists buying or selling dental practices. NASDA lawyers are finding, he said, that:
· The dental practice sale market is still buoyant despite many uncertainties
· Lenders/banks are more demanding and are requiring 10-15 year leases on dental practices which are not owned outright and also asking for security on larger loans
· Early signs are that the CQC is going to be pragmatic over practice sales and registration of new owners.
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