Latest goodwill survey shows a buoyant market for the sale and purchase of dental practices

shutterstock_87218056NASDAL (National Association of Specialist Dental Accountants and Lawyers) has reported a buoyant market for the sale and purchase of dental practices in its latest goodwill survey for the quarter ending 31 July, with NHS contracts still a strong selling point.

Alan Suggett, a partner in specialist dental accountants UNW LLP and a member of the NASDAL technical committee, carries out the quarterly survey.

He explained that the average goodwill value secured for a practice with an NHS contract was 144% of gross fee income and for a mixed practice it was 116% of turnover.

Valuations prepared by professional valuers were on average more than 10% higher than the sale price, reflecting active negotiation.

Private practices were on average 86% of turnover so are still less attractive to purchasers than mixed or NHS practices.

Alan commented that there were a number of transactions that varied significantly from the averages, so the survey figures should solely be regarded as an average for benchmarking purposes.

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