NASDA Goodwill survey reflects rising dental practice values

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

Direct Dial: 0191 243 6009
Mobile: 07860 246718
E‐mail: alansuggett@unw.co.uk

Free Advice from Chris Guillebeau

From the excellent Chris Guillebeau’s blog The Art of Non-Conformity

Free advice is often worth less than the price. Much of the time, you already know what you need to do about something—you just need to do it.
Nevertheless, I hear a lot of things being repeated, and I get asked a lot of the same questions… so here’s my less-than-$0.02 for anyone who cares. As the saying goes, take it or leave it.

“The customer is always right.”

Actually, sometimes the customer is dead wrong. Sometimes you don’t want the customer, and if you go out of your way to please one of them, you’ll disappoint the others.

I recently received my first PayPal buyer complaint in more than two years of doing business with Unconventional Guides. Two years! A great streak. Then one guy comes along with an axe to grind and tells PayPal I owed him money despite all evidence to the contrary.

It depressed me. My PayPal rep said I could dispute the claim and I would win, because my account was in such good standing. But in the end I just gave up, sent the money to the axe-grinder, and said goodbye. That customer wasn’t right, but if I kept stressing out about him, my ability to help anyone else that day would have been negatively impacted.

“You should ask people what they want when developing a project.”

Who said that? Oh, it was me. Oops. Well, here’s the thing: sometimes this is true. I’m the first to say that it can be helpful to run your ideas by people, get feedback, etc.

But it’s also true that if what you’re doing is truly innovative, not everyone will understand in the beginning, and maybe you should just go for it. Lately I’ve been thinking about what Henry Ford said: “If I had asked people what they wanted, they would have said ‘faster horses.’”

“Never check email in the morning.”

I’m on a one-man crusade to say that it’s OK to check email in the morning, or whenever you feel like. If you read blogs about productivity, you know it’s a lonely crusade, but I think I’m on to something. You don’t have to feel guilty if you like checking to see what people have to say to you.

Who knows—maybe that’s even the most important work of the day? OK, I’ll duck now.

“Don’t waste time with Twitter when you could be doing real work.”

What if 25% of your business comes from Twitter? That’s how it works for me, even though in the past 30 days I’ve mentioned my actual business work a total of once. Therefore, I think I’ll keep hanging out on Twitter. And you can too if you want, or not if you don’t want. Oh, and one more thing about this –

“To build a following on Twitter, you should share interesting links and reply to people.”

It’s good to do those things, but they won’t help you build a following on Twitter. The best way to build a following is by doing stuff away from Twitter, and encouraging people who find you elsewhere to add you on Twitter. Yep, that’s how it works.

“You must have a local support team to succeed.”

I think a support team can be very helpful. But what if you’re on your own and no one around you believes in your mission? Those people sound like a non-support team to me. If you have to choose between a non-support team and going it alone, I suggest going it alone.

“Slow and steady wins the race.”

What race are we talking about? It’s probably a good idea to know which race one has in mind before making blanket statements. Some races go to the slow and steady; others go to the fast and furious. See Mario Andretti: “If you think that you’re in control, you’re not going fast enough.”

Maybe that isn’t your style, but I think there’s a time and a place for it. Speaking of that:

“Good things only come to those who wait.”

Some good things come to those who wait; others come to those who go out and get them. If what you want is in the second category, what are you waiting for?

More from the World Cup

I know the hype continues – I have even got the Vuvuzela App for my iPhone.

I have to admit I’m focussed on The All Blacks v Wales tomorrow morning and my sympathies go to the Welsh U.20 team that were beaten by Argentina, the home team, at the Junior World Cup yesterday. After being level 19-19 at full time, sudden death extra time was played and this was followed by a penalty shoot out, left to me I would let the extra time just keep going, Wales lost 9-8, frustrating.

Enough of that, here’s a couple of pictures associated with events in South Africa. Says a lot about imagination of clothes designers and a lack of knowledge of world geography on US news stations.

Hope your team win this weekend.

Ther Monday Morning Quote #90

“Life is a series of natural and spontaneous changes. Don’t resist them – that only creates sorrow.

Let reality be reality. Let things flow naturally forward in whatever way they like.”

Lao Tzu, Chinese philosopher

Great Plate for a Dentist

I like personalised number plates and own two of them, A14 LUN & A15 AKR which are on my car and motor bike respectively. The former came into my life a few months after my father’s death; I had just managed to sell his old car, a 12 year old Ford Granada for not a large sum and wanted to something with the cash that would let me remember him. The day after the sale I was sitting in a “pre-Gerry Robinson” Little Chef in the Wye Valley waiting for my coffee, reading Saturday’s newspaper and studying the adverts for personalised plates.

Synchronicity strikes. There was A14 LUN priced at exactly the amount that I received for Dad’s Granada, so I did a quick “Well what about it Dad?” and, knowing that he would have enjoyed seeing a car with it, I went for it.

Yesterday morning I was driving through Knightsbridge on my way to the World Aesthetic Conference at the QE II Conference Centre when I let a BMW pull out from a side street. There in front of me was the dentist’s dream number plate – BDS 1. We crept along between traffic lights towards the restricted areas of central London (it was also the Changing of the Guard to celebrate the Queen’s birthday) for perhaps ten minutes. I was wondering whether I was going to follow BDS 1 to Westminster all the way to the Conference, presuming that it must belong to a dentist. I thought about the purchase cost & resale value, and whether there would be CGT to pay.

Eventually at Hyde Park Corner we went our separate ways and I was able to see there was a flag fluttering from the nearside wing. Flags on cars are not unusual at the moment, with World Cup fever around, but I didn’t recognise this one.

It was only when I got home that I realised that BDS 1 was the official car of the Barbadian Embassy – never presume.

Twitter for Business: The 8 Key Rules

By Geoffrey James

Taken from BNET an excellent resource.

RULE #1: Have a business strategy. Decide what you hope to accomplish, then select your Tweets accordingly. Otherwise you’re just a twit.

RULE #2: Remember it’s about them, not you. People are only interested in YOUR life and activities when it impacts THEIR life and activities.

RULE #3: Never tweet more than 5 times a day. Sending too many tweets pushes other people’s tweets off recipient’s screens. That’s annoying.

RULE #4: Make your tweets interesting. Stay within your strategy, but don’t make every tweet identical. That just bores your readers.

RULE #5: Don’t continue with another tweet. People hate checking back and forth to reconstruct a multi-tweet post.

RULE #6: Assume your boss is reading. Twitter is a public service so you can’t necessarily control who’s reading.

RULE #7: Keep your tweets useful. If there’s not a good reason for your readers to read the tweet, don’t send it.

RULE #8: Don’t underestimate the impact. Studies show that less than 10% of tweets have any business value to the reader.

The Monday Morning Quote #89

“I have spent my days stringing and unstringing my instrument, while the song I came to sing remains unsung.”

Rabindranth Tagore, poet

Where’s our mascot, then?

From Pulse Online

Where’s our mascot, then?

As the 2012 Olympic mascots are unveiled, perhaps it’s time the NHS got in on the act – Copperfield has a couple of suggestions

Wenlock and Mandeville are the newly unveiled twin mascots of the London 2012 Olympics. Intended to promote the Olympic ideals – Citius, Altius, Fortius (Faster, Higher, Stronger) – they are destined to appear on T-shirts and coffee mugs around the world. ‘Resting’ actors will soon be stepping out in brightly coloured Wenlock and Mandeville outfits to scare the bejeezus out of innocent pre-school children.

If the design team really wanted to come up with something that would get kids’ attention, why did they go to all the trouble and expense of producing a brand new pair of brightly coloured, metallic one-eyed aliens? Why didn’t they just ask the BBC if they could borrow a couple of new-generation Daleks and have done with it? If you want to see kids run faster and climb higher simply turn up at your local playground in full Dr Who clobber yelling, ‘Run for your lives! The Daleks are coming!’ and watch the buggers go.

For decades the NHS struggled on without so much as a logo. How hospitals and GP surgeries made it through the fifties, sixties, seventies and eighties without an all-inclusive and motivational emblem on their headed notepaper I’ll never know. Now I look at hospital discharge summaries, with their nonsensical computer-generated gobbledygook (‘Patient presented with discharge. Took own discharge. Discharged to GP follow-up’), clock the NHS lozenge in the corner with its forward-looking italicised capital letters and am reassured that only my beloved National Health Service could fabricate and distribute such steaming bullshit.

But what is a logo? A mere two-dimensional symbol. What the NHS needs now is a mascot. An inspirational figure like World Cup Willie, the world’s first and arguably most successful sporting mascot. Something that informs the public, a mission statement in quasi-human form. A cartoon figure, perhaps, but one that conveys the true essence of today’s NHS.

As the vogue seems to be for twosomes, allow me to present Nik and Nikki Noctor – the embodiments of future NHS care.

Note Nikki’s caring, optimistic posture. The smile, the big doe eyes, her head tilted ever so slightly to one side. You may think of her as a nurse but no, she is so much more. Contrast her classical feminine beauty with Nik’s powerful and vaguely homoerotic physique. A rippling torso that would grace any Soviet propaganda poster, a sneer of cold command and just enough of Sportacus’s colour and vitality to appeal to the primary school market, which is where the real merchandising money is.

See how they wear their stethoscopes draped over their necks, just like real doctors on TV. See how their badges read ‘CONSULTANT’ in bold, upper-case type.

Admire the clean lines of their green, short-sleeved tunics, an NHS crest adorning the left breast and each sleeve like the three lions on the England shirt. Their trousers are crisply tailored, with gleaming, box-fresh trainers completing their ensembles.

But look more closely – the stethoscopes around their necks are gaudy, cheap and nasty, cosmetic adornments worn for a deceitful purpose. The badge reading ‘CONSULTANT’ has ‘nurse practitioner’ engraved in tiny print beneath. And the trainers are probably fake. This, boys and girls, is the future of your NHS.

RSA Animate – Drive: The surprising truth about what motivates us

To go hand in hand with his book Drive, here’s the animated lecture from Dan Pink to watch it click here.

Think you know what motivates everybody? Think again.

Resources – Denticom

I am a great fan and critic of the way telephones are used and abused in professional practices and always feel sorry for the plate-spinning receptionist / front desk / telephonist / meeter & greeter / fee collector who is at the sharp end of customer service whilst the clinicians are able to hide “backstage”. I came across Denticom recently and their representative Jack Christian came and explained how their service worked. I gather they are growing their business at the rate of several practices per week.

As ever I do not endorse, just bring to your attention something that may be of use.

Good morning Alun,

I wanted to thank you once again for taking the time to meet with me last Friday.

As discussed I wanted to send you across a brief e-mail to outline some of the main services and benefits of Denticom, as well as giving you a rough indication on cost to clients.

  1. Full call management – how many calls are you losing?? Missed and abandoned (which as we discussed = lost business). If a patient is worth £300 – £500, can you afford to lose just one call a day?!!
  2. Call recording – We can provide full call recording and optional call recording to all practices, this is encrypted and very useful for any disputes or training purposes.
  3. Ability to promote – Private treatments and services can be promoted while patients wait to speak to someone. E.g. 10% off teeth whitening in March. This saves money on other advertisements, and is proven to be a more effective way of advertising to patients FREE OR CHARGE! Patients will also be informed of their place in the queue if receptionist is busy on a call or attending to patients face to face, and this also reduces the perception of waiting time.
  4. Built in messaging – e.g. between 1pm – 2pm (If you were shut for lunch?) or 5pm – 9am (Opening hours) There would be a professional message stating this to patients when they call. This is built in so that you only need to set it up once for different messages to be played at different times, and can also change the message or add messages at any time needed.
  5. Digital line Installation – We install  Isdn 2 line’s (Digital line) to all practices, we review their line usage to advise how many speech channels a practice will need? This means that callers will be able to get through and not get engaged, and if receptionists are busy the call can be answered in a professional way giving the patient options to hold, or leave details for a call back (Set up completely dependent on the individual practices requirements)
  6. Equipment – We provide whatever equipment is needed. E.g. wireless headset (Reception) Portable phones, desk phones. (All again dependent on the practices needs)
  7. Installation – Installation usually costs around £800-£1000, however for a number of referral sites and other practice we have done this FOC and would be happy to if you were to put us in touch with a practice or client.
  8. Training – We provide full training for all members of staff (On the day after instillation) on the equipment and Management tools for all staff.
  9. Ongoing Consultation – We provide ongoing support, consultations and Account Management. This is to make sure the practices we deal with are using the business tools to their full ability, and that the solution is setup correctly for their working environment.

All of the above will increase the profitability of a practice and help assist you with the busy front desk and improve access for patients!

  • Through identifying and capturing lost calls, and being able to either answer them at the time, or calling any you missed back (or they can leave a message);
  • Installation of Digital lines, to make sure callers can get through;
  • By playing promotional messages while they wait to speak to someone;
  • Identifying whether the caller is an existing patient or a new caller interested in new registration;

In regards to pricing, we always arrange a site survey and an initial consultation for find out what the practices current telephony and IT setup is? Before looking at a package for them. However rough package prices are below:

  • Package 1    1-4 phones         £150 per month
  • Package 2 5-7 phones         £200 per month
  • Package 3 8-12 phones       £250 per month
No capital outlay or setup costs involved!

I hope this all makes sense Alun, and is of more help to you?

Like I said in our meeting it would be great if you do have any clients or know of any practices that I could talk to and help, with regards to our Denticom solution. Please do let me know.

Jack’s contact details are:  jchristian@ascentuk.com 07854 206371 and the company’s website is www.denticom.co.uk