All types of dental practices have seen an upsurge in goodwill as a percentage of fee income

Dental

According to the latest findings from the NASDAL Goodwill Survey, all types of practice have seen an upsurge in goodwill as a percentage of fee income in the last quarter. It shows a consistent growth pattern in goodwill values across the board for the quarter ending 31 January 2022. However, there is less excitement for NHS dental practices than before the pandemic.

In general, goodwill as a proportion of fee income increased in the quarter across all types of practice — transactions, for example, averaged 166 per cent of gross fees, which is up from one-hundred and fifty-two per cent in the quarter to 31 October 2021 and from one-hundred and forty-four per cent for the quarter ending 31 July 2021.

“All types of dental practices have seen an upsurge in goodwill as a percentage of fee income.“

A partner in UNW LLP and specialist dental accountant, Alan Suggett, stated: “I am pleased to see the practice sales market behaving in a resilient fashion and continuing its upturn as we hopefully leave the worst of the pandemic behind. In the many conversations that I have with professional advisers, banks, agents and so on, it is becoming clear, at least anecdotally, that there is less enthusiasm for NHS practices at this time. Whilst the reason for this is uncertain, my view is that it arises as a consequence of a combination of factors. For example uncertainty about the financial basis of NHS contracts post 31 March 2022. Particularly as the current eighty-five per cent threshold is proving impossible for many practices to achieve. Others include the drift of NHS patients into the private sector during the pandemic and increasing recruitment problems made worse by reducing enthusiasm for associates to carry out NHS work.”

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