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Practice Valuations on the rise again

The results of the latest NASDAL (The National Association of Specialist Dental Accountants and Lawyers) goodwill survey are in and they show the practice sales market remaining in rude health and a continuing upswing in practice valuations.

 

The average goodwill valuation for practices saw another leap to 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.

NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.

 

Author NASDAL, the National Association of Specialist Dental Accountants and Lawyers

Posted by Gemma

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