Dental Practice Valuations 'Skyrocketed' In 2021
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- Published: Monday, 14 March 2022 07:44
- Written by Peter Ingle
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The value of deals in the UK Health & Social Care sector is hitting record levels and stands at £6.01bn so far for 2021, according to BLM’s Health Sector Deals Diagnosis.
In news that will cheer up practice owners, the insurance and law group BLM has reported on values of sales in the Dental and Social Care markets. It might add to the enticements for the reportedly large proportion of dentists planning to retire or sell up.
In 2021 deals in the two sectors totalled just over 6 billion pounds, and 27% of deals were related to dental practices. The report tracked the quantity and value of transactions in the two markets.
Conducted in partnership with Experian’s Market iQ division, BLM’s Healthcare Deals Diagnosis, tracks the quantity and value of transactions in the UK Health & Social Care sector. Previous years combined deal valuations were £2.36bn in 2019, £1.22bn in 2020. In 2021 the second quarter alone registered a total value of over £3bn. Put in proportion, that represents a 12-fold increase on the same quarter in 2020.
The 2021 data revealed that the value of deals in the last 12 months significantly surpassed the combined deal valuation for 2019 (£2.26bn) and 2020 (£1.22bn), outweighing their cumulative value by over £2.53bn. Q2 2021 was the most active quarter in the year, with over £3bn worth of deals, a more than 12-fold increase on Q2 2020 (£253m). The scale of the increase suggests that these figures are reflecting more than just pent up post-pandemic demand. While the largest value individual deals were not dental, in total they were fractionally higher than the value of residential care deals.
By region the South East saw the highest number of deals with the North West and London following. In terms of value of transactions London led with £4.26bn being spent.
Summarising, BLM stated that recent years had seen a huge increase in the value of deals in the sector. New challenges included digital transformations making new opportunities for disruptive businesses. This has driven greater M & A activity.
With a look to the future, the spokesman added that “BLM’s Healthcare Deals Diagnosis is a good barometer into how attractive the health sector market is, with many regions outside of London seeing strong growth and activity. The future landscape of health care services and products is one to look out for, with many multinational businesses looking to acquire high-performing businesses with potential.”
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