Goodwill valuations continue to rise

Goodwill valuations have continued to rise despite deals falling

Goodwill valuations have continued to rise despite deal values dropping, according to the latest NASDAL quarterly goodwill survey.

Average goodwill values jumped to 124% of goodwill compared with 115% in the last quarter, whilst deal values dropped to 119% of goodwill, compared with 123% in the previous quarter.

Despite the figures showing a short-term drop in deal values, compared with the same point last year deals have increased by 6% of goodwill.

‘The market is still very buoyant and there is huge demand for NHS practices,’ Alan Suggett, specialist dental accountant and partner in UNW LLP, explained.

‘With 2018 being the earliest a new contract can begin and a more likely date of 2020 and beyond, many purchasers are happy to take the calculated risk.

‘Whether Brexit will have an effect on the market will be seen in due course but the banks are certainly letting it be known that they currently see it as “business as usual”.’

The goodwill figures are collated from accountant and lawyer members of NASDAL on a quarterly basis in order to give a useful guide to the practice sales market.


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