The survey covered the quarter ending January 31, 2025, and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members’ clients in the period).
The quarter saw a fall back in goodwill values across the board. Overall, goodwill values were at 128 per cent as a percentage of gross fees, compared with 153 per cent in the previous quarter. NHS goodwill values were down to 149 per cent of gross fees, from 175 per cent in the previous quarter. Private practices were down too; from 143 per cent as a percentage of gross fees to 102 per cent. Mixed practice goodwill values saw 149 per cent as a percentage of gross fees compared to 154 per cent in the quarter ending October 31, 2024.
Flurry of activity to come
Mike Blenkharn, partner and head of dental at UNW LLP who compiled the goodwill survey commented, “It is not a surprise to me to see these figures - indeed I predicted it in our response to the last quarter’s statistics. The market is still strong, but the quarter saw fewer deals following the budget. I expect to see a flurry of activity in the next quarter before the end of March to avoid the tax changes.
We are still seeing strong values for the right practices of any type but particularly those that are private.”
Johnny Minford, commercial and development director for DJH and NASDAL media officer, added, “The time lag in terms of commencement to completion of deals is in the region of nine to 12 months and means that we are talking about deals here that begun at the end of 2023. I also agree it is still a strong market and with renewed interest in NHS practices.”
The goodwill figures are collated from accountant and lawyer members of NASDAL in order to give a useful guide to the practice sales market.
NASDAL reminds all that as with any averages, these statistics should be treated as a guideline only.