NASDAL Practice Goodwill Survey – corporate competition?
The headline figure for deals has dropped slightly – an average goodwill value of 132 per cent of gross fees – 5 per cent down from the previous quarter. Average valuations are reasonably steady at 140 per cent of gross fees which is an increase of 4 per cent on the quarter ending January 31, 2018. NHS practices in particular still appear to be in huge demand with a significant number of sales in the quarter at considerably over 200 per cent of gross fees.
Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, said, “A particular area of note in this survey is that certain practices that are larger and located in the ‘right place’ are gaining from competition between the larger corporate groups such as BUPA, Portman and Genesis as they compete for the sale. Small comfort if you are looking to sell in the ‘wrong place’!