A Buoyant Market: NASDAL’s Latest Goodwill Survey Results for Q3 2024
NASDAL released the latest statistics from their quarterly Goodwill Survey.
The latest NASDAL (National Association of Specialist Dental Accountants and Lawyers) quarterly Goodwill Survey, covering the quarter ending 31st October 2024, paints a promising picture of the dental practice market. The survey reveals a significant increase in goodwill values, with overall values reaching 153% of gross fees, a remarkable jump from 113% in the previous quarter.
Key Findings from the Survey:
- NHS Goodwill: Values surged to 175% of gross fees, up from 129% in the previous quarter.
- Private Practices: These saw a rise from 111% to 143% of gross fees.
- Mixed Practices: After facing challenges in recent times, mixed practice goodwill values rose from 107% to 154%.
What Does This Mean for the Market?
Mike Blenkharn, Partner and Head of Dental at UNW LLP, who compiled the survey, highlighted that these impressive figures signal a return of confidence in the market. However, he also cautioned that these numbers reflect deals initiated in 2023 and early 2024 when activity in the market was exceptionally high. While the market remains strong, he warned there may be a slight pullback in the next quarter.
Remember however, the survey’s figures are influenced by a time lag of 9 to 12 months, meaning that these statistics are based on deals that were initiated before a series of events that have affected practice sales.
These positive figures suggest that the dental practice sales market is currently buoyant, and interest in practice acquisitions is strong. However, market dynamics could shift due to factors like interest rate changes and political uncertainty, making it crucial for stakeholders to remain agile in their decision-making.
Alison Bates, who heads up our valuations team said:
“We have felt the momentum with the market for the last 6 months and it is really reassuring to see the official NASDAL report confirming the return to a buoyant practice sales market. The rise in average goodwill values will ensure a great return on investment regardless of practice type and for those Principals who have put off selling their practices due to the wider economy and high interest rates, now is a great time to take that step towards a sale with both independent and corporate buyers keen to purchase.”
Get an up-to-date valuation to help realise the potential in your practice
An expert practice valuation can highlight the areas you need to act on to realise the profit in your practice and get the best price when the time comes to selling. Valuing helps you make a more informed decision of when to sell and can helps set realistic expectations for what your practice may be worth, the likely buyer type and any post-sale obligations you may face.
Book a valuation here or contact us to have a confidential chat about your dental practice.
