Goodwill values soar, despite uncertainty around the NHS
The average goodwill for NHS and mixed practices has soared, according to the latest figures from NASDAL.
The average goodwill for practices with an NHS contract is now 153% of turnover, compared with 140% in the previous quarter, while mixed practices have seen the average goodwill for their practice jump from 104% to 123%.
‘The market as a whole remains buoyant – it seems determined to ignore the uncertainty around the NHS in particular and is carrying on regardless,’ Alan Suggett, specialist dental accountant and partner in UNW LLP, said.
Private practices have also seen an increase with the average goodwill for a private practice up to 84%.
The goodwill figures are collated from accountant and lawyer members of the National Association of Specialist Dental Accountants and Lawyers (NASDAL) on a quarterly basis in order to give a useful guide to the practice sales market, and these latest figures relate to the quarter ending 31 January 2016.
‘At the current time it seems that demand massively exceeds supply,’ Russell Abrahams, senior partner at Abrahams Dresden, explained.
‘It is a tough time to be an associate and many are keen to rush into practice ownership, with additional pressure from the increasing volume of corporate purchases.
‘There is a good deal of family money in the marketplace along with banks that have a renewed appetite for lending.
‘These trends look set to continue for the foreseeable future.’