NASDAL Goodwill Survey – NHS Practice Values continue to drop

The survey for the quarter ending January 31, 2019 sees a number of noteworthy points. 

The quarter saw a large reduction in the average goodwill values of NHS practices – a continuing trend. NHS sales saw an average goodwill value of 118 per cent of gross fees – down from 177 per cent in the quarter ending October 31, 2018 and from 224 per cent in the quarter ending July 31, 2018. Fully private practice sales bounced back to an average goodwill value of 127 per cent of gross fees and mixed practices stayed steady at an average goodwill value of 108 per cent of gross fees.

Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, commented, “The fact that NHS practice values have now seen three consecutive quarters of reduction in value, does seem to suggest that it is now potentially a trend rather than a blip. Perhaps in these particularly politically uncertain times, what once looked like a safe, long-term bet is less attractive? Government backed promises are not what they were. Valuations have stayed quite steady for the last year and it seems the market is less turbulent than it was a couple of years ago.”