Dental sales market ‘bouyant’
But experts caution the market may fall back in the next quarter.
NASDAL (the National Association of Specialist Dental Accountants and Lawyers) has released the latest statistics from their quarterly Goodwill Survey. The survey covers the quarter ending 31st October 2024 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 31 October 2024 saw a big increase in goodwill values across the board. Overall, goodwill values were at 153% as a percentage of gross fees – a big rise from 113% in the previous quarter.
NHS goodwill values were up at 175% of gross fees – up from 129% in the previous quarter. Private practices were up too; from 111% as a percentage of gross fees to 143%. Even mixed practice goodwill values which had struggled in recent times rose from 107% as a percentage of gross fees to 154% in the quarter ending 31st October 2024.
Mike Blenkharn, Partner and Head of Dental at UNW LLP who compiled the goodwill survey said: “These figures certainly do point towards the return of a buoyant market. The figure of 153% as a percentage of gross fees is strong and I expect the market may fall back a little from this in the next quarter.
“The figures illustrate the time lag that exists in dental practice sale data of around 9-12 months. This means these numbers are reflecting 2023 and early 2024 when there was an explosion of activity. I believe that the market will stay strong if not quite at these heights.”
Johnny Minford, Commercial and Development Director, DJH Mitten Clarke and NASDAL Media Officer added: “We have definitely seen a bounce which these figures reflect but I agree with Mike that the time lag means these are reflecting deals commenced twelve months ago. Since then we have had an increase in interest rates, an election and a knock on general business confidence. We may see a flurry of activity before 31 March to avoid the tax changes.”
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 2024.
NASDAL reminds noted that, as with any averages, these statistics should be treated as a guideline only.