Based on last quarter sales from Frank Taylor & Associates, the UK’s most successful sales agent to the dental profession, demand for dental practices remains high and the value of private practices is continuing to increase, but NOT at the expense of NHS practices as recent reports have claimed. There is still huge demand for practices across the UK and those looking to buy a dental practice are facing a lot of competition. This in turn is seeing vendors of both private and NHS practices secure above average values for their business when the time comes to sell.
NHS practices are still the most sought after with the average goodwill for the last quarter recorded by Frank Taylor & Associates being 202%. This is in stark contrast to the recent NASDAL survey which was reported as being ‘significantly lower’ in this last quarter at just 128%. Based on these figures, the difference in sales values being achieved is extreme. For example, a vendor selling a practice with a turnover of £400,000 via Frank Taylor & Associates would seeamassive £296,000 difference!
Dentists who sell their practices through Frank Taylor & Associates are often amazed at the way in which the values and length of time to sell a practice can vary. However, practices are still selling as Patrick Ford recently discovered when he sold his practice in Hertfordshire via Frank Taylor & Associates.
“From the very first contact with Frank Taylor & Associates, I knew it was the right decision. The team was very professional and attentive in all our dealings and produced an extremely comprehensive sales prospectus that showcased my practice to its full potential to prospective buyers and generated an excellent response.
Despite a very protracted sales process due to an NHS contract which proved difficult to transfer, the support given was brilliant. The FT&A team kept the process going and without their ongoing help, I don’t think we’d have ever got there. I really never thought that it would be so complicated or such a stressful process but the FT&A team certainly made it much easier thanks to the care and attention they gave me every step of the way.”
And the differences in values don’t end there.
Private practices are still very much in demand and are currently selling via Frank Taylor & Associates for an average of 115% of turnover (recent NASDAL report states 90% of turnover). For example, for a practice with a turnover of £400,000, a sale value of £460,000 would be achieved via Frank Taylor & Associates against a value of just £360,000 based on the recent NASDAL figures. That’s an impressive £100,000 more in the bank account for the vendor. A similar pattern also applies to mixed practices with the Frank Taylor & Associates average goodwill value being 189% compared to the NASDAL figure of 134%.
For further information on how Frank Taylor & Associates can help you sell a dental practice, call 0845 612 3434.