This week saw the release of the latest NASDAL (National Association of Specialist Dental Accountants and Lawyers) statistics from their quarterly Goodwill Survey. The survey covers the quarter ending 31st January 2025 and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).
The quarter ending 31st January 2025 saw a fall back in goodwill values across the board. Overall, goodwill values were at 128% as a percentage of gross fees – compared with 153% in the previous quarter. NHS goodwill values were down to 149% of gross fees – from 175% in the previous quarter. Private practices were down too; from 143% as a percentage of gross fees to 102%. Mixed practice goodwill values saw 149% as a percentage of gross fees compared to 154% in the quarter ending 31st October 2024.
Flurry of activity to come
Mike Blenkharn, Partner and Head of Dental at UNW LLP, who compiled the goodwill survey, commented, “It is not a surprise to me to see these figures – indeed I predicted it in our response to the last quarter’s statistics .¹ The market is still strong but the quarter saw fewer deals following the budget. I expect to see a flurry of activity in the next quarter before the end of March to avoid the tax changes.
We are still seeing strong values for the right practices of any type but particularly those that are private.”
Johnny Minford, Commercial and Development Director, DJH and NASDAL Media Officer, added: “The time lag in terms of commencement to completion of deals is in the region of 9-12 months and means that we are talking about deals here begun at the end of 2023. I also agree it is still a strong market and with renewed interest in NHS practices.”
The goodwill figures are collated from accountant and lawyer members of NASDAL in order to give a useful guide to the practice sales market. These figures relate to the quarter ending 31st January 2025.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.
Reference:
¹ https://nasdal.org.uk/nasdal-goodwill-survey-results-a-buoyant-market/
