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 30th April 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 30th April 2025 saw a small further reduction in goodwill values in terms of both valuations and deals done. Overall, goodwill values were at 118% as a percentage of gross fees – compared with 128% in the previous quarter. NHS goodwill values were steady at 148% of gross fees – from 149% in the previous quarter. Private practices were up slightly; 108% as a percentage of gross fees compared to 102%. Mixed practice goodwill values saw 132% as a percentage of gross fees – down from 149% in the quarter ending 31st January 2025.
A mixed picture
Mike Blenkharn, Partner and Head of Dental at UNW LLP who compiled the goodwill survey commented, “You may remember that in the previous results that I predicted a flurry of activity in the next quarter before the end of March. That has definitely been borne out in the figures, but the reduction in values is perhaps down to a rush in those wanting to complete deals before April and therefore avoid the CGT changes. It is still a buyer’s market. Deals and valuations are now much more aligned and I still expect a strong market in the coming months.”
Johnny Minford, Commercial and Development Director, DJH and NASDAL Media Officer added, “The market is definitely skewed towards private practices in our experience which perhaps surprises me a little considering the current economic climate. I am finding that people are still less confident than they were and also a wide spread in the values from the lowest to the highest. A good number of practice owners are taking the decision to continue working for another 2-3 years when returns may be better.”
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 30th April 2025.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.
