Specialist dental accountants and advisers UNW has released its 2024 Dental Deals Report, highlighting a sharp rise in transactions ahead of tax changes announced in the Chancellor’s Autumn Budget.
Based on NASDAL data, 220 dental practice deals completed in 2024, with a total consideration of over £235 million. A striking 42 transactions completed in October alone – more than double the monthly average – as sellers accelerated plans to beat incoming changes to Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR).
The report reveals that private practices accounted for 55% of deals, with NHS practices recording the highest average multiple at 1.49x. Most deals fell in the 0.5x to 2.0x revenue multiple range, though 29 transactions exceeded this, reflecting the ongoing demand for high-performing practices.
Valuation multiples varied significantly by region, ranging from 0.24x in Essex to 2.25x in Northamptonshire, the latter driven by a single standout transaction. London and the South East remained the most active regions, representing 45% of all transactions.
The report also highlights the growing impact of policy changes on deal planning. For example, changes to CGT and BADR could reduce a seller’s post-tax proceeds by up to £80,000 on a £3.5m transaction if a sale is delayed beyond April 2026.
Michael McCulloch, who leads UNW’s Dental M&A advisory service, said: “Last year saw a marked shift in market activity, particularly in the lead-up to the Autumn Budget, as sellers moved swiftly to complete deals ahead of impending tax changes. This urgency underscored a critical point: timing isn’t just about transaction speed – it’s about protecting and maximising value. As we look ahead, navigating tax and regulatory changes strategically will be key to unlocking the full potential of a business sale, ensuring value isn’t just realised, but optimised.”
The full report, which includes regional breakdowns, valuation trends and analysis of policy changes, is available to download at www.unw.co.uk/dental-deals.
