Goodwill values holding up
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- Published: Wednesday, 22 August 2012 09:25
- Written by News Editor
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| The latest NASDAL goodwill survey shows that dental practices are selling well and that large practices with NHS contracts are still sought after. According to accountant Alan Suggett the average goodwill as a percentage of turnover for all practices sold in the quarter ending 30th April was 91%, while the average for NHS practices was 105%. |
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Alan Suggett said: “There is a wide range of values, but my experience of the dental market place is that prices are still buoyant. This is because at the top end the consolidators are active, and, for smaller practices, there is a strong drive for associates to become practice owners.”
“I’m told by practice owners that life is much more difficult today, which it undoubtedly is, but, life for associates with declining earnings is far worse, leading many of them to aspire to have their own practice.”
John Grant, a lawyer member of NASDAL, said banks are continuing to lend to dentists, albeit not as easily as previously. “Provided you can muster up a deposit, convince the banks that you know what you are doing and the figures add up, the banks will lend - although it can be a tortuous journey!”
John continued: “Certainly the market is still pretty hot and all the agents we deal with report that they are busy with demand still outstripping supply. My guess is that in 12 to 18 months we might start to see a downturn as uncertainty about the new NHS contract starts to grow.”
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