‘Averages’ unhelpful to dental practice sales
The reporting of UK-wide dental practice sale prices as a percentage of goodwill can be fraught with difficulty.
That’s according to dental practice valuer Andy Acton.
Andy, of Frank Taylor and Associates – independent dental practice valuers and sales agent to the profession, is concerned that the picture given is misleading.
He said: ‘I appreciate that it is useful for all of us to have a snapshot of the market at any one time. However, consider four sales that we made in the last three months of 2011:
• Cornwall – 68%
• Devon – 61%
• Cambridgeshire – 133%
• North London – 122%
He said: ‘This gives an average of 96%. This figure is a clear distortion of the market as none of these practices are worth anywhere near 96%.’
Andy also feels that the perception of the ‘corporate takeover’ of dentistry, is someway wide of the mark.
He added: ‘Of the last 75 sales we have completed, only four have been to corporates – just 5%. The rest have been sold to independent dentists and so the myth that the corporates are taking over is not valid in our experience.’