Dental practice sales experience large jump
Dental practice sales jumped in value for the fifth quarter in a row, the latest NASDAL goodwill survey shows.
The latest quarter shows goodwill as a percentage of fee income for deals done has jumped to 157%.
Despite this jump in deals done, the latest practice valuations show a massive drop to 132% of goodwill.
‘It is clear in many parts of the country that the practices sales market is still buoyant,’ Alan Suggett, specialist dental accountant and partner in UNW LLP, said.
‘Why are we seeing the big difference in valuations and deals?
‘Obviously, there is a time lag between the valuation of a practice and the eventual deal.
‘These days that could be anything up to nine to 12 months in some cases.
‘Another suggestion for any discrepancy could be that in the case of practice sales to corporates, these will very rarely have an open market valuation.
‘Therefore, these only come into play in the figures at the deal stage.’
Dental practice sales
Private and mixed practices have driven the strong growth in dental practice sales with NHS values dropping off, NASDAL claims.
Average private practice values rose from 104% to 120% and mixed practice values leapt from 120% to 163%.
Meanwhile, NHS average goodwill values as a percentage of fee income dropped, from 194% to 157%.