The latest results published from the National Association of Specialist Dental Accountants and Lawyers (NASDAL) Goodwill Survey statistics suggests there may be a return to normality in the offing.

The survey covers the quarter ending 31 July 2021 and includes data on valuations as well as deals completed (i.e., practices bought or sold by NASDAL members' clients in the period).

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The quarter saw big jumps both in those deals completed and valuations. In terms of deals done, goodwill as a percentage of fee income in the quarter across all types of practice averaged 144% of gross fees - that was a significant leap from 128% in the quarter to 31st April 2021. NHS practice goodwill bounced back with practice goodwill at 161% of gross fees - up from 146% in the previous period.

Private practices' goodwill values saw a big increase - up to 133% of gross fees from 110% of gross fees in the previous quarter. Mixed practices reduced slightly with values of 145% of gross fees from 156% of gross fees last time.

Alan Suggett, specialist dental accountant and partner in UNW LLP who compiles the goodwill survey, commented: 'In my commentary on the last results, I did say that I was surprised to see big drops in goodwill values and that it had not been my subjective experience. As with all statistics, there can be anomalies.

'It seems that the figures from this latest quarter have borne that out. Why did last quarter's figures occur? I would be speculating but it could be that there was a backlog of discounted deals that were delayed due to COVID-19 and they all went through in the one quarter.

'Certainly as we move forward, NASDAL members are reporting that the market is robust and that sale prices are not being reduced and are reaching their full potential.'

The goodwill figures are collated from accountant and lawyer members of NASDAL in order to give a useful guide to the practice sales market.