This week has seen the release of the latest NASDAL (National Association of Specialist Dental Accountants and Lawyers) statistics from their quarterly Goodwill Survey. The survey covers the quarter ending 31st July 2025 and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).
The quarter ending 31st July 2025 saw a small increase in goodwill values in terms of both valuations and deals done. Overall, goodwill values were at 124% as a percentage of gross fees – compared with 118% in the previous quarter. NHS goodwill values were slightly higher at 153% of gross fees – from 148% in the previous quarter. Mixed practice goodwill values were steady at 106% as a percentage of gross fees – down from 108% in the quarter ending 30th April 2025. Private practices were down by more; 122% as a percentage of gross fees compared to 132%. There was a wide range of goodwill values recorded in the sale data – from 30% at the low point, to 263% at the high end.
“A realistic valuation level?”
Mike Blenkharn, Partner and Head of Dental at UNW LLP who compiled the goodwill survey on behalf of NASDAL commented, “these figures are reflecting those practices that probably came to market at the end of 2024. The practice sales market is still active but perhaps not fully buoyant. However, I feel that we may have now reached a realistic valuation level? NHS and private practices have stayed steady in the last few surveys, but mixed practices seem to be on a downward trend. This can be a reflection of the variations in how mixed that they actually are. The banks are still keen to lend and there are some extremely competitive rates in the market.”
Johnny Minford, Commercial and Development Director, DJH and NASDAL Media Officer said, “We know that the sales process lags behind practices going on to the market. In 2025 we have felt a change with practice performance and profits becoming more stable which feeds into stronger sales prices. Purchasers, whether corporate or independents, are increasing being more strategic in their approach and quality oriented. This is also reflected in the availability of funding and we see a continuing appetite by the banks to help acquisition in dental practices, which are still seen as a good and secure investment. This in turn is shown in the proportion of successful small group or independent acquirers.
“We are seeing multiples of EBITDA holding up, particularly NHS practices, which remain attractive to independent buyers, including first timers. The steady income stream remains attractive, both to a buyer and to the bank funders. We will wait and see whether the forthcoming tax changes and the direction of travel by the government is having a negative or positive effect on the acquisition appetite.”
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 July 2025.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.