The results of the Results of the Spring 2016 NASDAL Survey (The National Association of Specialist Dental Accountants and Lawyers) are in. They show the practice sales market remains strong with a continuing upswing in practice valuations.
We understand that NASDAL take an average across the country and that they are intended to be conservative. We are finding that in many areas these figures are being exceeded but they do represent a perfect benchmark when considering what your business may be worth. Or what you can expect to pay if entering the market as a purchaser, says Lily Head of Lily Head Dental Practice Sales.
The Results of the Spring 2016 NASDAL Survey show that average goodwill valuation for dental practices were at 124% of goodwill. This is up almost 13% compared with the autumn of 2015 and 12% up on the summer of 2014. NHS practices are attracting an average valuation of 142% of goodwill with mixed practices perceived as even more valuable at 155% of goodwill.
In terms of practice sales, the overall trend is still up with average sales 11% higher when compared with the summer of 2014.
Alan Suggett, specialist dental accountant and partner in UNW LLP, explained, “The market is still very buoyant and there is huge demand for NHS practices. With 2018 being the earliest a new contract can begin and a more likely date of 2020 and beyond, many purchasers are happy to take the calculated risk. Whether Brexit will have an effect on the market will be seen in due course but the banks are certainly letting it be known that they currently see it as ‘business as usual.’”
The goodwill figures are collated from accountant and lawyer members of NASDAL on a quarterly basis in order to give a useful guide to the practice sales market. These figures relate to the quarter ending 30th April 2016.
If you would like to discuss dental practice valuations please Contact Us for valuable advice.