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Goodwill Values Continue to Out Perform NASDAL Survey

Posted on October 20, 2015 in Articles & Frank Taylor & Associates

finger in the airThe ranges reported in the NASDAL survey show the inherent risk of taking averages – the country has such a wide and varied range of goodwill values it is always important to treat your own practice as individual.

There is a recurring theme as I compare the NASDAL results to those achieved by Frank Taylor & Associates in that the NASDAL figures are lower across the board. Our past quarter has NHS practices at an average of 188% (NASDAL 125%) – the highest being 248%, private at 99% (81%) – the highest one at 152% and mixed practices at 139% (115%) – the top one at 181%.

Given that this is a recurring quarterly trend, I pondered why this is. I feel it is because clients that I report on have engaged Frank Taylor & Associates who are known for achieving market leading values whereas the NASDAL survey will include a proportion of private sales which are known to be at lower levels. This will skew the figures, however, from a sellers viewpoint achieving the best price possible is typically the key factor when selling.

I am surprised to see the trend since October 2014 to date that there has been a steady decline in goodwill values – this is definitely not my experience nor one that the lenders are experiencing according to David Brewer, MD of FTA Finance.

I took this as an opportunity to review some goodwill values from the Frank Taylor & Associates archive since 2012 and the results were staggering. Some practices have increased in value by 57% in these past 3 years. This is going from a goodwill value of £460,000 to £722,000.

Given the number of practices Frank Taylor & Associates have valued since 2012 it is possible that there is an additional £180,000,000 of goodwill value relating to these practices.

If you have had your practice valued in the past three years and are interested in getting it updated this can be done for free by either calling 0330 088 1156, visiting stand I95 Dental Showcase or getting in touch here. If you have yet to have your practice valued but want to, we’d love to help you too.

Andy Acton
Director

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