Dental practice prices continue to rise in 2019
Average dental practice prices jumped 5.4% in 2019, according to the latest report from Christie & Co.
Larger practices operating in the private sector grew at a faster rate in 2019 than their NHS counterparts.
The Business Outlook 2020: Focus on Business reports demand outstripping supply for quality dental practices, particularly in urban and suburban areas.
‘The dental sector continues to grow,’ Simon Hughes, managing director – medical at Christie & Co, said.
‘It’s fascinating times for those of us who work in it.
‘With strong demand from a range of buyers and support from lending banks, we anticipate a strong 2020.’
Dental practice prices continuing growth
Average growth in dental practice prices is continuing at a similar rate, with 2018 experiencing a 5.2% rise.
The reports suggests dentistry will see continued growth in 2020 as dental companies look to expand and improve their portfolios.
The addition of private equity investment in 2019 will further increase the demand for larger practices.
‘We believe that the market will continue to perform well in 2020 with demand from both the independent and corporate sectors,’ the report concludes.
‘Traditional lenders will support buyers and a number of new challenger banks will enter the market.’
Independent practices still make up most of the dental practice market, the report also shows.
Almost two thirds of dental practices are independently owned, with small groups and dental corporates sharing the other third.
Looking to the year ahead, Christie & Co also predicts:
- Continued demand for urban locations as corporate and expanding multiple operator target larger practices, particularly those with an EBITDA of £250,000+
- A likely increase in volume of NHS practices coming to market. Sellers seeking to maximise their returns ahead of the potential contract reform
- UK dental practice prices increases will encourage mature dental companies of scale to target pan-European opportunities. Here prices are lower and the market is less mature.
You can read the full report at Christie & Co Business Outlook 2020: Focus on Business.