The National Association of Specialist Dental Accountants and Lawyers (NASDAL) have released the results of their latest goodwill survey and it does appear that following a number of years of impressive growth, there is now a levelling out of prices being paid.
Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, explained, “It certainly does appear that the ‘boom’ in the practice sales market may be on the wane. It is interesting to see the convergence of the valuations and deals done data – this could suggest that there is a realisation that prices are not going to continue to rise at the same rate. It is worth noting though that the market is still rising, if perhaps more slowly.”
As in recent times, NHS practices are continuing to attract significant premiums. In the quarter to 30th April 2017, NHS practices sold at an average of 165% of goodwill as a percentage of fee income, compared with the overall average of 137%.
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 2017.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.
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