This week has seen the release of the latest statistics from NASDAL (National Association of Specialist Dental Accountants and Lawyers) in its quarterly Goodwill Survey. This survey covers the quarter ending 31st July 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 July 2023 saw a market that is steady but perhaps seeing signs of a slowdown. Goodwill values were at 145% as a percentage of gross fees – similar to the 151% of the previous quarter. Private practice values were at 150% as a percentage of gross fees – up slightly from 145% in the quarter ending 30th April 2023. However, mixed practices saw quite a drop compared to the previous quarter – 132% as a percentage of gross fees compared with 160% previously.

“Deals down on 2022”

Mike Blenkharn, Partner and Head of Dental at UNW LLP who compiled the goodwill survey commented, “I would certainly say that deals are down compared with 2022. We have entered a quieter period of the practice sales market. Indeed, our last three goodwill surveys have all shown a downward trend. I believe that this is down to a number of factors – the biggest being the increased interest rates and not just in regard to the cost of business borrowing but also that of personal borrowing; in particular mortgages.

There is still interest in those NHS practices with high UDA rates and NHS values are likely to remain steady above a certain baseline level. And, as ever, good practices sell quickly!”

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 July 2023.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.

This week saw the release of the latest statistics from NASDAL (National Association of Specialist Dental Accountants and Lawyers) and its quarterly Goodwill Survey. This survey covers the quarter ending 30th April 2023 and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).

This quarter saw a market that is continuing to do well. Goodwill values stayed steady at 151% as a percentage of gross fees – very similar to the 156% of the previous quarter. However, NHS practice values did appear to fall back sharply with values of 133% as a percentage of gross fees – down from 163% in the quarter ending 31st January 2023. We will watch to see if this becomes a trend with interest. Indeed, values for private and mixed practices in this quarter were almost identical to the last – 145% and 160% respectively versus 143% and 162% in the last quarter.

There was a big rise in valuations – 175% as a percentage of gross fees compared to 116% previously. Valuations are not done deals though so it will be some months before we see whether this has translated into real returns.

“Sensible pricing”

Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer commented, “The practice sales market is still in good health. Profitable practices are selling and we have seen what I might consider to be more sensible pricing in recent months. The number of interest rate rises has possibly brought values down a touch but the longer term effect of this in bank lending is yet to be fully seen so we will see if this means higher values in the months to come.

“One phenomenon of note is that of the ‘Associate-led practice’. I have seen a number of practices marketed in this fashion as if the new buyer and Principal will have nothing to do? All good practices need motivated team members and Associates but also need considerable time and thought from the owner too.”

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 2023.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.

Last week saw CDO England, Sara Hurley and BSPD’s President, Jenny Harris, present the NASDAL (National Association of Specialist Dental Accountants and Lawyers) Dental Check by One Practice of the Year Award at BDIA (British Dental Industry Association) Dental Showcase.

This award is presented by NASDAL to recognise the outstanding commitment of practices to the DCby1 campaign. Launched by the British Society of Paediatric Dentistry (BSPD) in partnership with the Office of the Chief Dental Officer England, the aim of the campaign is to increase the number of children who access dental care aged 0-2 years, by encouraging dental appointments for babies before their first birthday.

The winner of the NASDAL Dental Check by One Practice of the Year 2023 Award and the £1000 prize is Ghyllmount Dental Practice, Penrith, Cumbria.

Heidi Marshall, Chair of NASDAL, commented, “To see the huge efforts put in by practices up and down the UK into DCby1 is humbling. It is abundantly clear that it means so much to many practices and at NASDAL we feel honoured to be able to support this initiative. We hope our award and the £1000 that the winning practice receives will enable them to achieve even more for access  for children and babies moving forward. NASDAL has always been keen to recognise business excellence in dentistry – this award illustrates that doing the right thing makes good business sense too.

“Congratulations to our winner, Ghyllmount Dental Practice. We were particularly impressed with the growth in patient numbers since they engaged with DCby1 in 2017. Patient numbers have grown from 3730 to 4206 – an increase of over 12%. The team have continually reached out to the community and earned an excellent reputation for the care they offer to children and the peace of mind they offer their parents. Indeed, patients have joined specifically because of their reputation for the care they provide to children.”

Dr John Lewis, Principal of Ghyllmount Dental Practice said, “We are so, so honoured to win this award. I am particularly pleased as it recognises the massive contribution of our fantastic team here at Ghyllmount. Without them, we couldn’t improve the oral health of local children in the way we have been. We look forward to building upon this success.”

Mrs Jenny Harris, President of BSPD, commented, “This award seeks to recognise and celebrate the successful implementation of the Dental Check by One initiative into practice.  To that end, Ghyllmount Dental Practice impressed the judges by showing their support of DCby1 through engaging with their child patients from the very outset.  They encourage new parents to register their children straight away and to start bringing them along from birth. Ghyllmount is a truly worthy winner of this award having embedded the concepts of Dental Check by One, not only at a practice level – but also within the local community.

We would also like to make reference to two other entries received that were excellent and worthy of note: Mill Hill Dental Practice in North West London and Outwood Dental Practice in Wakefield.

“Overall, it has been fabulous to see how practices and individuals up and down the country have embraced the campaign, despite the post-pandemic challenges.  Our message to parents and carers is ‘take your infant to the dentist’, since we know that prevention is better, and cheaper to the pocket and the planet, than cure.”

Today has seen NASDAL (National Association of Specialist Dental Accountants and Lawyers) publish their annual Benchmarking Report for the financial period, 2021-22. This has shown:

• Overall, increased net profit across the board. This was to be expected as practices were closed for 2-3 months of the previous year due to lockdown
• An increase in average net profit per principal from £152,414 to £168,826 for a typical dental practice
• Private practices see a big jump increase in average net profit per principal: £143,418 to £178,513
• Mixed practices see an increase in average net profit per principal: £168,326 to £177,072
• NHS practices see a small increase in average net profit per principal: £145,498 to £150,894
• Associate average remuneration is up for the first time in a number of years from £63,304 to £75,488

Ian Simpson, Chartered Accountant and a partner in Humphrey and Co, which conducts the statistical exercise commented, “The increase in profits was to be expected due to lockdown in the previous year. The increase was seen by all practices but NHS practices only saw a marginal increase compared with those experienced by mixed and private practices. In fact there was a differential of more than £25,000 in both cases. NHS practices cannot pass on increased material and wage costs and this may worsen over the next year – for instance, these figures have not taken into account inflation of over 10% and the massive energy price increases that have occurred more recently. 

“The increase in Associates’ income is welcome but in reality only reflects their earning of private income over a full twelve months rather than nine or ten of the previous year. As we look forward to the 2023 figures, we might expect to see NHS practice profits fall back further and a possible slowdown in the growth in private practice profitability.”

Heidi Marshall, of Dodd & Co, Specialist Dental Accountants and Chair of NASDAL, observed, “It is important I think to view the 2022 figures in a wider context. Whilst there have been increases in the profitability of all practices, it is worth noting that NHS profits are still at a similar level to that of 15 years ago.”

The annual Benchmarking Survey statistics are gathered from the accountant members of NASDAL across the UK who together act for more than a quarter of self-employed dentists. The statistics provide average ‘state-of-the-nation’ figures so NASDAL accountants can benchmark their clients’ earnings and expenditure and help them run their practices more profitably. The basis of the survey figures is 2022 tax returns and accounts with year ends up to 5 April 2022.

Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer, added, “The NASDAL annual profit and loss benchmarking report is a unique and valuable tool which enables NASDAL accountant members to compare their practice owning clients with industry norms. It means that we help our clients really understand what is happening in their dental business.”

Image caption: Johnny Minford, Media Officer, Chris Davies, Lawyers’ Chair, Heidi Marshall, Chair, Mike Blenkharn, Ian Simpson and Nick Ledingham

This week saw the release of the latest statistics from the NASDAL (National Association of Specialist Dental Accountants and Lawyers) Goodwill Survey. This survey covers the quarter ending 31st October 2022 and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).

This quarter saw a market that continued to thrive, albeit with a big difference in valuations and what practice sales are actually completing at. Overall, goodwill values were up to 141% as a percentage of gross fees – from 135%.

NHS practices saw a bounce with goodwill as a percentage of fee income up 20% to 152% from the previous quarter. Mixed practices were also on the up with goodwill as a percentage of income up to 143% from 126% in the quarter ending 31st July 2022. Private practices values were on the slide though with goodwill as a percentage of income at 135% of gross fees – down from 147% in the last quarter.

A market returning to normality

Mike Blenkharn, Head of Dental at UNW LLP who compiles the goodwill survey, said, “We have definitely seen more deals happening in this quarter than the previous three or four. I see this trend continuing and is a sign of a market is returning to more normal times. Although there was an NHS bounce, the number of sales was low compared to private and mixed practices. I would want to see further data before I came to any firm conclusions.”

Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer remarked, “The practice sales market is still healthy but in my experience I am now seeing a number of practices ‘sticking’ on the market for longer than one might expect. They are perfectly healthy from a financial perspective but perhaps the appetite of buyers, geography or other factors are at play here.”

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 2022.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.

Practices are reminded that time is running out to enter the 2023 NASDAL Dental Check by One (DCby1) Practice of the Year award. The closing date is Friday 10th February 2023 at 5pm.

The award seeks to recognise a practice that has successfully introduced the British Society of Paediatric Dentistry (BSPD) Dental Check by One into their practice. The aim of the initiative is to increase the number of children who access dental care aged 0-2 years, by campaigning to get infant into a dentist’s chair by their first birthday. 

The award will be presented by CDO England, Sara Hurley, at the BDIA Dental Showcase in Docklands ExCeL on Friday 24th March 2023.

NASDAL Chair Heidi Marshall said, “We very much look forward to hearing how the entrants have reached out to their communities and engaged with families. We know that doing the right thing makes good business sense, but we should be clear that we are not just looking for large numbers of patients. We want to see those practices that have been creative in their approach. Please, don’t miss out on this fantastic opportunity to share your initiatives with us.”

Professor Claire Stevens CBE, Spokesperson for BSPD, added: “We appreciate that the last few years have not been easy for dental practices – however, the importance and impact of reaching those responsible for the oral health of babies in their families or care continues to be crucial. We know that DCby1 can make a difference and we were heartened to see that within as little as two years since its launch in June 2017, we could to see that there had already been an improvement with more children aged 0-2 accessing a dentist during that period. We appreciate that the success is in part due to many dental practices getting on board with the campaign and we are so grateful for the hard work of dental practices up and down the UK who support the DCby1 initiative. 

“So, I would urge all surgeries that have made particular efforts with the youngest in their communities to enter the award and let us recognise and celebrate your efforts!”

Practices who are interested in entering the 2023 NASDAL DCby1 award, should visit https://www.nasdal.org.uk/award , where they will find all the relevant details and can register. All entries must be submitted before 5pm, Friday 10th February 2023. The winning practice will receive £1000, a trophy, and the right to use the NASDAL Dental Check by One Practice of the Year 2023 title.

This week sees the latest results from the NASDAL (National Association of Specialist Dental Accountants and Lawyers) Goodwill Survey statistics. This survey covers the quarter ending 31st July 2022 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 saw a mixed bag – goodwill down for NHS and mixed practices, but a slight increase for private practices. Overall, there was a decrease in goodwill as a percentage of fee income in the quarter across all types of practice – deals averaged 135% of gross fees – down from 143% in the quarter to 30th April 2022.

NHS practices fell back to 132% goodwill as a percentage of fee income in the quarter – a big drop from 178% of gross fees in the previous quarter. Mixed practice goodwill values were also on the slide as they dropped to 119% of gross fees (132% in the previous quarter). Private practices saw a small increase with goodwill at 140% of gross fees – up from 124% in the last quarter.

NHS Practices less attractive?

Mike Blenkharn, Head of Dental at UNW LLP who compiles the goodwill survey, said, “In my view, this quarter is more indicative than the previous one. I feel that NHS practices are less attractive than they were twelve months for a number of reasons – recruitment of staff being one of the major ones. The right mixed practice can offer the benefits of both private and NHS.”

Johnny Minford

Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer added, “I think that the market will stabilise over the next twelve months. With a coming recession and lower consumer confidence, the NHS could be perceived as a safe haven. The value of a steady income is starting to be seen in the Goodwill Survey results, with mixed practices showing higher values than predominately private. NHSBSA are taking a hard line on clawback and abatement, so conversely this could lead to more NHS practices on the market.”

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 July 2022.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.

New Chair of NASDAL, Heidi Marshall has just announced the launch of the 2023 NASDAL Dental Check by One (DCby1) Practice of the Year award.  The award seeks to recognise a practice that has successfully introduced the British Society of Paediatric Dentistry (BSPD) Dental Check by One into their practice. The aim of the initiative is to increase the number of children who access dental care aged 0-2 years, by campaigning to get infant into a dentist’s chair by their first birthday. 

Established in 2018, the award seeks to highlight excellence in the provision of oral care and prevention in children and showcase the opportunity to achieve a real business improvement.  Particular credit is given to applications from dental practices with evidence supporting their contribution to the overall health of their community.

The award will be presented by CDO England, Sara Hurley, at the BDIA Dental Showcase in Docklands ExCeL on Friday 24th March 2023.

NASDAL Chair Heidi Marshall said, “We very much look forward to hearing how the entrants have reached out to their communities and engaged with families. We know that doing the right thing makes good business sense, but we should be clear that we are not just looking for large numbers of patients. We want to see those practices that have been creative in their approach.”

Professor Claire Stevens CBE, Spokesperson for BSPD, added: “We appreciate that the last few years have not been easy for dental practices – however, the importance and impact of reaching those responsible for the oral health of babies in their families or care continues to be crucial. We know that DCby1 can make a difference and we were heartened to see that within as little as two years since its launch in June 2017, we could to see that there had already been an improvement with more children aged 0-2 accessing a dentist during that period. We appreciate that the success is in part due to many dental practices getting on board with the campaign and we are so grateful for the hard work of dental practices up and down the UK who support the DCby1 initiative. 

“So, I would urge all surgeries that have made particular efforts with the youngest in their communities to enter the award and let us recognise and celebrate your efforts!”

Practices who are interested in entering the 2023 NASDAL DCby1 award, should visit https://www.nasdal.org.uk/award , where they will find all the relevant details and can register. All entries must be submitted before 5pm, Friday 10th February 2023. The winning practice will receive £1000, a trophy, and the right to use the NASDAL Dental Check by One Practice of the Year 2023 title.

*Image: 2022 winners, Bateman and Best receiving their award from CDO, Sara Hurley and Chairman of NASDAL, Nick Ledingham

Following the recent N Sejpal-v-Rodericks Dental case (EAT-2020-001407-AT), there has been discussion in the dental sector about the status of Associates and whether they are self-employed, workers, or both. Worker status is relevant for tax, employment rights including holidays and discrimination claims. Many Associates will prefer self-employment due to the flexibility and tax benefits. However, it could be the case that one could be considered self-employed for tax purposes by HMRC and still be a worker.

Senior Partner at Dental Accountants, Morris & Co, Nick Ledingham explained, “this is an extremely complicated area and there is no ‘one size fits all’ I’m afraid. Employment law is very case specific and in my experience, the issue will not affect all Associates. As ever, it is important to seek specialist advice.”

Nick Ledingham

Chris Davies, Head of Healthcare at JCP Solicitors said: “There are a number of factors to consider when examining any healthcare employment case, with the issue of personal service, in particular, set to be crucial when looking into the issue of an individual’s employment status for employment rights purposes.

“This is an evolving area of the law, and we are monitoring influential cases which could set a precedent such as N Sejpal-v-Rodericks Dental Limited, which has been remitted back to the Employment Tribunal for final determination following a successful appeal to the Employment Appeal Tribunal. This case could have wide-ranging implications for the future of healthcare employment law, so we are watching this carefully.

“Employment rights and the issue of self-employment in the healthcare sector is a highly complex area of law and should be approached with expertise on a case-by-case basis.”

Chris Davies

Dental practices across the country would be wise to keep this particular case under review and to follow the outcome as to how the employment tribunal deals with the questions of:

• whether individuals are carrying on a profession or business undertaking; and
• whether and in what circumstances a party is likely to be considered a client or customer in the context of dental practice relationships with Associates.

Employment cases are very fact specific. However, the outcome of the aforementioned case could potentially have implications for dental practices across the country, who tend to operate on the basis that Dental Associates are self-employed and not employees or workers.

This week has seen publication of the latest results from the NASDAL (National Association of Specialist Dental Accountants and Lawyers) Goodwill Survey statistics. This survey covers the quarter ending 30th April 2022 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 showed a sharp reverse in the recent pattern of increases in goodwill values. Overall, there was a substantial decrease in goodwill as a percentage of fee income in the quarter across all types of practice – deals averaged 143% of gross fees – down from 166% in the quarter to 31^st January 2022.

Private practices saw practice goodwill at 124% of gross fees – a big decrease from 155% in the last quarter. Mixed practice goodwill values were also on the slide as they dropped to 132% of gross fees (189% in the previous quarter). NHS practices did see an increase – they were at 178% of gross fees – up from 141% in the quarter to 31^st January 2022.

Wider concerns?

Mike Blenkharn, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, said, “It is interesting to see a big fall back across many practice goodwill values. We can perhaps speculate that as the market returns to a bit more normality it should be expected that figures fall back a little. It also could be symptomatic of wider concerns in the economy as a whole.

“We have seen a low number of NHS practices come to market this quarter which may have skewed that data somewhat and the rise. However, there is a lack of confidence in the market for NHS practices and it will therefore be interesting to see if this trend in goodwill values continues in future quarters.”

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 2022.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.