Insight into the Northern Ireland dental market

Image credit: K. Mitch Hodge for Unsplash 

Buyer appetite

Practice sales within Northern Ireland have developed at a slower rate than those sales within the mainland UK. Historically, the bulk of sales in the country were facilitated between Principals and their Associates, or to a buyer known to the owner of the business.

However, over the course of the past few years buyer appetite has changed and, while we have always benefited from strong sales within the independent and first-time buyer markets, positively, as practices have grown, earnings before interest, tax, depreciation and amortisation (EBITDA) have increased to a level that has attracted corporate operators and micro-consolidators. This has resulted in heightened activity as groups can now purchase a strong EBITDA at a lesser multiple than what they would pay on the mainland for the same profit levels, which was the result of a previous lack of direct competition and active group activity. As interest has grown, we are likely to see the emergence of new players in the market who are keen to build on and strengthen their portfolios, which will in turn, increase prices as competition grow. 

To read the full article on Irish Dentistry's website, click here.