Sharp fall in the value of dental practices this quarter

According to the latest quarterly goodwill survey from the National Association of Specialist Dental Accountants and Lawyers (NASDAL), dental practice valuations have taken a sharp decline in the last three months.

The survey revealed that the valuations have dropped by 12 per cent to 128 per cent of fee income.

Despite this, the value for deals completed is slightly up, with an average goodwill value of 136 per cent of gross fees.

A NASDAL spokesperson said: “I think that a range of more than 250 per cent illustrates how divided dental practice sales are in the UK.

“A few years ago, if someone had suggested a goodwill value of 313 per cent, they’d have been laughed at, but, if your practice ‘ticks the right boxes’ then it seems the market will pay what you want. However, if it doesn’t, you may have trouble selling it at all.”

Experts believe that corporates may now be looking to start purchasing dental practices again, this time with a little more focus.

Ruth Chesmore, acquisition director for Bupa Dental, said: “We’re regularly acquiring new practices and do so on the understanding they’re much more than just bricks and mortar.

“As a buyer, we are considering everything from a practice’s history and local reputation, through to the dedication and experience of the team.

“Of course there are two sides to any deal, whilst we’re looking for practices that will complement our portfolio, in return we offer them opportunities to enhance their customer and colleague proposition while providing a long-term home for the team.”

David Jacobs, Partner at Milsted Langdon said: “There is such a massive variation in dental practice sales throughout the UK means that you need to do as much as possible to ensure your practice ticks the right boxes.

“If you are thinking of selling your practice it is vital that you seek specialist advice. Contact Milsted Langdon today to find out how we can help.”

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