The goodwill value of dental practices continues to rise according to the figures gathered in the quarterly survey of deals and valuations by NASDA, the National Association of Specialist Dental Accountants. The average figure for both valuations and deals is now back near 100 per cent, the kind of level last seen before the recession struck in 2008.
Alan Suggett, a partner in unw LLP and the NASDA technical committee member responsible for gathering the figures, said that while the figures were snaking back up, the amounts achieved by dental practice vendors lacked consistency. It would be difficult to draw any conclusions on regional trends or on the merit of private versus NHS as an income source.
“As always,” he said, “this is very much a snapshot in time which reflects the general trend of the marketplace. The corporate chains are still buying, which helps keep dental practice values buoyant, although the big groups are more interested in NHS or mixed practices.”
The average goodwill valuations as a percentage of turnover during the quarter ending April 2010 was 99.6%, while the percentage for actual deals done was slightly lower at 99.2%. This compares with valuations at 92 % and deals at 86 % in the last quarter of 2009 and a year ago, in the first quarter of 2009, the figures were as low as 71 and 75 %.
Note to editors
The quarterly survey of dental practice goodwill values is carried out by Alan Suggett of specialist dental accountants unw LLP It uses figures collected from members of NASDA and NASDA’s Lawyers’Group. The aim of the survey is to extrapolate average values and pick up underlying trends to assist everyone in the dental profession involved in dental practice sales or purchases. The figures should not be used as evidence of an individual practice’s value.
For more information on NASDA, call Caroline Holland on 020 8679 9595 or go to the website at: www.nasda.org.uk
To view the article please download the PDF