The latest Practice Goodwill survey figures from the National Association of Specialist Dental Accountants and Lawyers (NASDAL) have shown that average dental practice sale values have started to drop despite a small rise in the valuations of practices.
During the last quarter, deals have fallen to an average of 132 per cent as a percentage of gross fees, a drop of around four per cent.
However, during the same three month period, figures show that valuations have in fact increased three per cent to 140 per cent of gross fees.
The survey’s results have displayed a trend that certain practices that are larger in size and are located in the right areas appear to be gaining from the ongoing competition between large corporate groups such as BUPA, Genesis and Portman as they all compete for the sales.
It is also becoming apparent that geographical factors are continuing to become more and more important and there is a similar pattern developing in associate availability.
From the NHS perspective, demand for NHS practices continues to be high with the number of sales over the three month period coming out at over 200 per cent of gross fees.
Previous annual figures had shown that private practice valuations were closing in on NHS valuations but these latest figures signify that NHS practices are beginning to attract a premium once again.
Smailes Goldie Group
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