Let’s face it, you have been a dedicated vet now for what feels like an entire lifetime and you have devoted your life to looking after the well-being of our furry friends. The animal kingdom is your life and in all honesty, you view your veterinary practice as your baby. After all, it is the business you have worked so hard to build from the ground up and have worked tirelessly to transform into the successful ever-growing practice that it is today!
You Feel Now is the Time to Sell Up
Your practice has been the one constant throughout your life and you have lived and breathed the animal kingdom for as long as you can remember, but now you feel the time is finally upon you to hang up your gloves and offload your practice into the hands of its next owner. Yes, you have come to the difficult decision to sell your practice and begin a new chapter of your life!
Now, whether you have reached your golden years and are ready to basque in the glory of retirement or have decided to begin a new adventure on the work front, selling your veterinary practice is without a doubt, going to be one of the most important decisions you will ever have to make. It is vital when making this life-changing decision to take some pretty essential factors into account that will ensure that you get the best price for your practice and will leave you more than satisfied after the sale has been set in stone. Here is a simple guide that will ensure you get the most out of selling your practice.
Plan in Advance
Now, if you do intend on retiring then it is important to plan at least a couple of years in advance. Whether you have planned the sale meticulously or have decided to offload on the spur of the moment, there are things you must do to ensure you get the most out of the sale. These include:
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- Consulting with legal/tax consultants – to provide guidance on any crucial decisions, the evaluation of your practice, and to shield you from future legal liability and to reduce tax repercussions.
- Ensure all business records are up to date – these include licenses, operating agreements, records of ownership, all contracts, articles of incorporation, business registrations, and any partnership agreements.
- Protect intellectual property – intellectual property that may include any inventions, logos, or trade names could increase the value of your practice.
- Check for liens that may still be in place – even after debts have been fulfilled, there may still be liens remaining within the practice.
Get a Valuation Of the Practice
It goes without saying that getting a valuation of the practice is essential when planning to sell your business. After all without it, how do you know what the practice is valued at? To ensure you get an accurate valuation, it is imperative to enlist the help of experienced pet valuation services as they will be able to provide you with their crucial knowledge and give you a cast-iron figure of what the business is actually worth. This will also help you to plan for your retirement and place the correct price on your practice when the time comes.
Consider All Your Selling Options
Now you have had your veterinary practice professionally appraised, it is now time to get to know what your selling options actually are. To get the most out of your business evidently, the best result would be to be bought out entirely. However, here are a few options that you can consider.
- Sell to an associate – if you do have associates within the practice then one of them may be interested in buying you out.
- Sell to a corporation – you could choose to sell to a corporation. Corporations usually hold great interest in purchasing businesses that have good profits, a prime location, and a high-gross revenue.
- Merge your practice – you could consider merging your practice with others in the area. However, if considering this option, you must do your homework and check your legal representation and CPA to make sure you will not be faced with any tax issues. Also, ensure a verified contract is drawn up to cover specific terms that may arise in the future. For instance, if the other party wishes to change the agreement.
- Stay on and improve sales potential – if there are any issues within the practice, you could choose to stay on and increase the profitability of the business and make the relevant improvements before you sell. However, bear in mind that increased profitability must be on the books for a significant period of time, not just a couple of months.
- Sell on to a non-veterinary practitioner – it is important to check if your state allows this beforehand, as not all states do.
So bear in mind before putting your veterinary practice on the market to try and plan in advance, get an experienced appraiser within the field to get an accurate valuation, and consider all the selling options to work out the best solution for you.