NASDAL Goodwill Survey – Greater Private Equity interest

The survey for the quarter ending October 31, 2018 has illustrated a number of trends that seem to be becoming more prevalent in the sector.

This quarter saw a reduction in the average goodwill values of all types of practice. NHS sales saw an average goodwill value of 177 per cent of gross fees – down from 224 per cent. Fully private practice sales were at an average goodwill value of 104 per cent of gross fees – down from 125 per cent in the quarter ending July 31, 2018. Finally, even mixed practices – one of the great performers of recent years, saw a slight reduction from 111 per cent of gross fees to 108 per cent. 

Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, said, “Although there has been a drop in both valuations and deals, I would want to see the next quarter’s figures before deciding on whether or not this is a trend or simply a blip.”