NASDAL Goodwill Survey results – deals done continue to rise

The survey for the quarter ending October 31, 2019 has seen a big leap in the goodwill as a percentage of fee income in deals done. This is the fifth quarter in a row that deals have risen – from a low of 122 per cent of gross fees in quarter ending October 2018, to 157 per cent of gross fees in this latest quarter.

However, unlike previous increases which had been driven by big rises in NHS practice values, this most recent quarter has been driven forward by private and mixed practices with NHS goodwill values falling back somewhat. The quarter to the October 31, 2019 saw an average goodwill value of 157 per cent of gross fees overall. NHS average goodwill values fell back from 194 per cent of gross fees in quarter ending July 31 to 155 per cent of gross fees this time. Moving in the other direction, private average goodwill values rose from 104 per cent of gross fees in the previous quarter to 120 per cent this time. Mixed practices leapt from 120 per cent of gross fees in the quarter to July 31, 2019 to 163 per cent of gross fees in the quarter ending October 31, 2019.