Volatility on the increase

The deals also reflect the ongoing popularity of mixed practices.

Alan Suggett, a partner in specialist dental accountants UNW LLP and a member of the NASDAL technical committee presented the figures at NASDAL’s annual press conference.

He said that the average goodwill value for an NHS dental practice was 88 per cent of turnover, for a private practice, 89 per cent, and all practices 97 per cent of turnover. Meanwhile, he said, valuations prepared by professional valuers were on average more than 20 per cent higher this quarter, reflecting a vibrant marketplace with upward pressure on goodwill values

Alan said bank funding is readily available which is fuelling goodwill increases. In some parts of the country, mainly the South East, he believes family money is inflating prices. “With interest rates low, some parents are thinking they are better off lending their savings to their son or daughter for a dental practice acquisition, rather than keeping it in the bank.”