A survey of dental accountants reveals that it still might not be the best time for practice owners to sell up. Peter Ingle reports
The quarterly NASDAL (National Association of Specialist Dental Accountants and Lawyers) statistics on goodwill values provide an insight into the vital signs of dental businesses – namely, the costs of practices bought or sold by the organisation’s clients. It is based on a survey of NASDAL members, and provides insights into valuations as well as deals completed.
The most recent report, released on Tuesday 8 September, covers the quarter ending 30 April 2026. Aside from their value as a snapshot, it may give an illustration of trends to make a comparison with the same quarter in 2025.
For those not versed in dental practice finances, goodwill is the value of a dental practice over and above the value of its physical and identifiable assets. In other words, it is the value attached to owning an established, income-generating practice rather than starting one from scratch.
A year ago, Johnny Minford, commercial and development director, DJH and NASDAL media officer, had commented that he was aware of a significant number of practice owners that had decided working for another two to three years before selling, in the hope of better returns. The latest figures are unlikely to have changed their minds.
The latest survey showed little change in goodwill values from those in the previous quarter ending 31 January. Overall goodwill values of 109% of gross fees compares with 107% in the previous quarter (ie, a practice with assets worth £100,000 would be sold for £109,000).
Breaking this down by practice type showed some differences. NHS values were up from 118% to 135%, while private and mixed practices were within a couple of percentage points of the previous quarter at 95% and 113% respectively.
Commenting on the survey Mike Blenkharn, partner and head of dental at UNW LLP, who compile the goodwill survey for NASDAL, said: 'There is a lot going in the latest goodwill survey figures. The first point to make is that prospective owners are more aware than they’ve ever been of due diligence and knowing their numbers.'
He observed that the trend of increased practice costs has led to greater scrutiny of these numbers by would be purchasers. He added: 'Good practices will always sell but there do seem to be some that have come to market that aren’t making the money they should.'
There are regional variations and London and the South East lead with high values. Lenders still prefer NHS practice and for these, unsurprisingly, a high UDA rate adds to a practice’s appeal and valuation.
Changes in 'Business Asset Disposal Relief' at the end of April 2026 would have incentivised sellers to complete before the deadline, when the tax rate was increased. This will have given some buyers a stronger hand in negotiations and encouraged sellers to get the deal done.
With daily stories adding to the sense of foreboding about the economy, it is worth comparing the latest data with that from the previous year. Here the picture is not so bright. In the equivalent quarter in 2025, overall goodwill ran at 118% of gross fees, and this represented a drop on the previous quarter’s 128%. NHS goodwill was at 148% - so, even with the latest increase, it has still fallen over the year. Private goodwill at 108% has dropped by 13 percentage points over the year and mixed by 19. They too had already fallen from the quarter ending in January 2025 by 17 percentage points.
Many of those familiar with many other businesses may still look a little enviously at dental goodwill values in respect of turnover. However, there is now a clearer trend suggesting that goodwill values are softening.
NASDAL point out that as with any averages, these statistics should be treated as a guideline only.