Dental practice valuations continue to fall

Dental practice valuations continue to fall
Goodwill valuations of NHS dental practices fell to 177% of gross fees in Q3 2018, while valuations of private practices fell to 104% of gross fees in the same period according to the NASDAL Goodwill Survey.

This means that dental practice valuations overall were just 125% of gross fees, compared with 153% in Q3 2017. The average transaction price in a dental practices sale in Q3 2018 was 122% of gross fees, compared with 134% a year earlier. According to the ‘Business Outlook 2019: Navigate, Innovate, Accelerate’ report, published by sales agent Christie & Co, demand for dental practices is likely to remain strong in 2019 following growth in the dental sector in 2018.

The report has revealed that the price of dental practices increased moderately in 2018 and predicts that prices will continue to be strong in 2019 due to a good supply of practices coming on to the market.

There is particularly strong demand for large practices and small groups of practices. For example, Apposite Capital, a new entrant to the market, has recently invested in Riverdale Healthcare. It also acquired the Alpha Vitality Group, which operates in north east England.

Regional variation in demand is significant because potential purchasers of NHS practices in some parts of the UK are concerned that they will not be able to recruit enough associates to meet NHS targets.

Contact Haslers to find out more.

Dental practice valuations continue to fall

Dental practice valuations continue to fall
Dental practice valuations continue to fall