Product Profile: NASDAL with Christopher Baker

Untitled Document
NASDAL - National Association of Specialist Dental Accoutnants & Lawyers
with Christopher Baker

Practice Goodwill Values— Uncertainty Creeps In!

The start of April saw the results of the latest NASDAL (The National Association of Specialist Dental Accountants and Lawyers) goodwill survey announced and they seem to show a market that is a little less bullish and perhaps more uncertain than it has been in recent times.

Alan Suggett, a specialist dental accountant and a partner in UNW LLP who compiles the goodwill survey, explained, 'This quarter's figures show the average of goodwill as a percentage of fee income on those practices actually sold, continue to drop back and there is a great discrepancy between valuations and deals.

'I reported in the last survey that practice sales agents had told me that there was still huge appetite for practices and the withdrawal of {my}dentist would have little or no effect on the market.

'There seemed to be a general perception that the corporates, including {my}dentist, were buying up every practice across the country. Whilst this wasn't true and [my]dentist was only responsible for a small percentage of sales, it does seem that their withdrawal may have lead to a more general loss of confidence.

'With a time lag between valuations and deals done, it will be interesting to see if the quarters to come will reflect the optimism of these high valuations when it comes to actually signing on the dotted line.'

NHS and Mixed practices continue to attract a significant premium. In the quarter to Jan. 31, 2017, Mixed practices sold at an average of 126 percent of goodwill as a percentage of fee income, with NHS attracting a rate of 156 percent. Private practices have been holding steady and now attract an average 101 percent of goodwill as a percentage of fee income.

The goodwill figures are collated from accountant and lawyer members of NASDAL on a quarterly basis in order to give a useful guide to the practice sales market. These figures relate to the quarter ending Jan. 31, 2017.

NASDAL reminds all that, as with any averages, these statistics should be treated as a guideline only.

Townie Perks
Townie® Poll
Have you taken any endo-related CE this year?

Sally Gross, Member Services Specialist
Phone: +1-480-445-9710
©2020 Dentaltown, L.L.C., a division of Farran Media, L.L.C. • All Rights Reserved
9633 S. 48th Street Suite 200 • Phoenix, AZ 85044 • Phone:+1-480-598-0001 • Fax:+1-480-598-3450