Latest NASDAL survey results – goodwill on the slide?

02 November, 2023 / infocus
 Will Peakin  

This week has seen the release of the latest statistics from NASDAL (National Association of Specialist Dental Accountants and Lawyers) in its quarterly Goodwill Survey.

The survey covers the quarter ending 31 July and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period). The quarter saw a market that is steady but perhaps seeing signs of a slow down.

Goodwill values were at 145 per cent as a percentage of gross fees – similar to the 151 per cent of the previous quarter. Private practice values were at 150 per cent as a percentage of gross fees – up slightly from 145 per cent in the quarter ending 30 April.

We have entered a quieter period of the practice sales market

However, mixed practices saw quite a drop compared to the previous quarter – 132 per cent as a percentage of gross fees compared with 160 per cent previously.

‘Deals down on 2022

Mike Blenkharn, Partner and Head of Dental at UNW LLP, who compiled the goodwill survey, said: “I would certainly say that deals are down compared with 2022. We have entered a quieter period of the practice sales market.

“Indeed, our last three goodwill surveys have all shown a downward trend. I believe that this is down to a number of factors – the biggest being the increased interest rates and not just in regard to the cost of business borrowing but also that of personal borrowing; in particular mortgages.

“There is still interest in those NHS practices with high UDA rates and NHS values are likely to remain steady above a certain baseline level. And, as ever, good practices sell quickly!”

The goodwill figures are collated from accountant and lawyer members of NASDAL in order to give a guide to the practice sales market. NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.


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