Time for an exit policy?
The latest NASDA survey in which Alan Suggett, partner in charge of the unw Dental Business Unit and editor of the quarterly survey, comments on the continuing rise in the goodwill value of dental practices.
NASDA goodwill survey reflects rising dental practice values
The goodwill value of dental practices continues to rise according to the figures gathered in the quarterly survey of deals and valuations by NASDA, the National Association of Specialist Dental Accountants. The average figure for both valuations and deals is now back near 100 per cent, the kind of level last seen before the recession struck in 2008.
Alan Suggett, a partner in unw LLP and the NASDA technical committee member responsible for gathering the figures, said that while the figures were snaking back up, the amounts achieved by dental practice vendors lacked consistency. It would be difficult to draw any conclusions on regional trends or on the merit of private versus NHS as an income source.
“As always,” he said, “this is very much a snapshot in time which reflects the general trend of the marketplace. The corporate chains are still buying, which helps keep dental practice values buoyant, although the big groups are more interested in NHS or mixed practices.”
The average goodwill valuations as a percentage of turnover during the quarter ended 30 April 2010 was 99.6%, while the percentage for actual deals done was slightly lower at 99.2%. This compares with valuations at 92% and deals at 86% in the last quarter of 2009 and a year ago, in the first quarter of 2009, the figures were as low as 71% and 75%.
If you would like to speak to Alan about the above or any other related matters, he can be contacted as follows:
Alan Suggett
The Incisal Edge 