Practice goodwill values – the top of the market?

Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, explained, “It certainly does appear that the ‘boom’ in the practice sales market may be on the wane. It is interesting to see the convergence of the valuations and deals done data – this could suggest that there is a realisation that prices are not going to continue to rise at the same rate. It is worth noting though that the market is still rising, if perhaps more slowly.”

Ray Goodman, managing director of Goodman Grant Solicitors Ltd, added, “There are increasing numbers of new corporate buyers and private equity firms entering the market who will only pay what a practice is worth based upon a full and proper financial valuation. Whilst clearly there are instances where entrepreneurial young dentists will pay more to get the practice that they desire, the corporates won’t and this has meant the market easing back a little.