Achieve Above Your Valuation: Dentistry Magazine

The latest statistics for the last financial year ending March 2016 are in, and the wait for the average dental practice goodwill values is over. The results show that the average practice sale with Dental Elite acting as a broker rose to 3.23x Adjusted Net Profit, 6.99x Adjusted EBITDA or 137.8% of turnover.

Depending on the valuation metric used, that shows an increase of 0.3x Adjusted Net Profit, 0.72x increase based on Adjusted EBITDA, reflecting a 15.67% increase if expressing the valuation as a percentage of turnover.

Luke Moore, co-founder of Dental Elite said: ‘I think anyone involved in dental practice sales and dental practice goodwill values will have noticed that the market has gained considerable strength. Our tried and test, open bidding process is ensuring that we get the best overall deal available on the market with most practices achieving over and above our valuation by a considerable margin, especially those which are predominately NHS.’

There is a noticeable difference in the figures between NHS, mixed and private, with NHS practices displaying a 3.66x ANP, 6.79x EBITDA and 156.70% turnover. Meanwhile, mixed practices sold for an average of 8.98x Adjusted EBITDA or 3.56x Adjusted Net Profit (136.02% as a reflection of turnover).

Originally Published in Private Dentistry Magazine – August 2016