Average value of dental practices rising

According to the latest quarterly goodwill figures from NASDAL, the average value of dental practices is showing signs of recovery.

Valuations for dental practices had been on a steady decline from a high of 153 per cent of fee income in October 2017.

However, results for the latest quarter show that there has been an upturn in valuations from 126 per cent to 131 per cent of fee income in the latest quarter.

Alongside this, goodwill figures as a percentage of gross fees across all practices for deals done were up 2 per cent on the previous quarter.

NHS practices are currently experiencing their first increase in average goodwill values after three-quarters of reductions.

The latest NHS values are at 149 per cent of gross fees, an increase of 31 per cent from 118 per cent in the quarter ending in January.

There was also an increase in goodwill values for mixed dental practices, which saw an average of 146 per cent of gross fees – up 38 per cent on the last quarter. While fully private practice sales were relatively steady at an average goodwill value of 120 per cent of gross fees.

It is believed that with Brexit looming banks are looking for any kind of certainty that they can find and are particularly keen on practices with a significant plan income.

David Jacobs, Partner at Milsted Langdon said: “The NASDAL report shows that after several quarters of decline goodwill values are showing signs of recovery.

“If you are unsure of the impact this has on your dental practice then it is important that you seek specialist advice. Contact our expert team today.”

Posted in News.