Latest NASDAL Survey results – goodwill values hold steadyNews
Posted by: Dental Design 8th February 2024
This week sees the latest statistics from NASDAL (National Association of Specialist Dental Accountants and Lawyers) and its quarterly Goodwill Survey. This survey covers the quarter ending 31st October 2023 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 October 2023 saw a market that continues to be steady and perhaps pausing before greater action later in 2024. Overall, goodwill values were at 151% as a percentage of gross fees – similar to the 145% of the previous quarter and exactly the same as the quarter before that. NHS Practice values saw a big jump – they were at 194% as a percentage of gross fees, up from 148% in the previous quarter. Mixed practices continued this trend – at 178% as a percentage of gross fees, up from 132% in the previous quarter. However, private practice values were at 132% as a percentage of gross fees – up slightly from 145% in the quarter ending 30th April 2023.
“Fewer NHS practices on the market?”
Mike Blenkharn, Partner and Head of Dental at UNW LLP who compiled the goodwill survey commented, “In our experience we are seeing that lenders are very keen again which is good news. I think there are perhaps fewer NHS practices on the market although I do know that there are mini-corporates out there who are looking to target NHS practices.”
Johnny Minford, Commercial and Development Director, DJH Mitten Clarke and NASDAL Media Officer added, “I think the market for private practices is settling after the previous growth and see it being steady for some time to come. In harder economic times, NHS practices can offer value, continuity and an increased element of certainty and the increase in goodwill values may reflect this. I am aware of some owners who are looking specifically for NHS practices to run alongside their private practices – a case of being in position to maximise the options?”
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 October 2023.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.