Demand and not profitability dominates dental practice values – says NASDA

Demand and not profitability dominates dental practice values says the most recent bulletin from UNW Dental Unit.

The latest NASDAL quarterly goodwill survey, for the quarter ending 30th April 2015, indicates that prices achieved on the sale of some dental practices are more indicative of high demand than the profits that can be achieved.

The highest values are still being commanded by NHS practices, which, in the view of the impending reform of contracts, is illogical, given the uncertainty of the reformed contract, but reflecting the massive surplus of buyers over sellers.

However, private dental practice values appear to be gaining ground. The average goodwill value secured for a private practice was 99% of gross fee income. This compares with a figure of 90% for the quarter ending January 2015 and 88% for the quarter ending October 2014.

Meanwhile, the value of NHS practices continues to outstrip mixed and private practices. The average goodwill figures are 125% of turnover for NHS practices, and 104% for mixed practices. The overall average figure for all types of practice is 113%.

It is very important to note that there were a number of transactions in the survey which varied significantly from the averages, so the survey results should be seen as providing a rough guideline only, and specific practice circumstances must always be taken into account.

The whole document is shown below:

UNW Dental Bulletin June 2015

 

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