Selling a veterinary practice can be a daunting task, but it doesn’t have to be a “fire sale.” To avoid selling your practice for less than it’s worth, you need to start planning at least 3-5 years before you intend to sell. In this article, we’ll explore the steps you can take to ensure a successful sale of your veterinary practice.
At Vp Veterinary Advisors, our goal is to assist you in planning your transition and eventual sale of your veterinary practice. We suggest doing the following to ensure you obtain maximum value for your practice in the future!
Meet with a Financial Advisor
Meeting with a financial advisor is an essential first step in preparing for the sale of your veterinary practice. A financial advisor can help you calculate your “wealth gap” which is a measure of what you currently have financially (minus your business value) and what you need to retire and live comfortably! You advisor can also assist you in identifying any limitations in your retirement planning and provide guidance . By meeting with a financial advisor, you can ensure that you’re financially prepared for retirement and the sale of your practice.
Have a Formal Valuation performed by a Veterinary CVA
To understand the current value of your practice and assess what changes need to be made to maximize your profitability, you need to have a formal valuation conducted. A formal valuation will provide you with a realistic estimate of your practice’s worth, providing a road map to follow for future changes to be made. Identifying key areas where you can reduce expenses and increase revenues are just a few examples of the value of a formal practice valuation.
Perform a periodic Financial review of your key performance indicators and assess your fee structure.
A biannual fee analysis is an essential step in preparing for the sale of your veterinary practice. Conducting a fee analysis twice a year can help you identify areas where you can increase your revenue by adjusting your fees or services. By staying up to date with your fees, you can make your practice more attractive to potential buyers and increase your chances of receiving a higher sale price.
Organize your financial records
Your financial records need to be in good order to provide potential buyers with a clear and accurate picture of your practice’s financial health. This includes accurate accounting records, tax returns, and financial statements. Having organized financial records will also make it easier to negotiate with potential buyers and ensure that you receive a fair price for your practice.
Maintain a positive image on social media
Having a strong social media presence with a multitude of positive performance reviews can greatly make your practice more attractive to future buyers as this reflects your reputation for quality in the community and allows for continued success of the practice moving forward.
Set Yourself up for Success
To ensure a successful sale of your veterinary practice, you need to set yourself up for success. This includes developing a detailed business plan, identifying potential buyers, and preparing your staff and clients for the transition. You should also consider hiring a professional business broker or intermediary to help you navigate the sales process and negotiate with potential buyers. By setting yourself up for success, you can ensure a smooth transition and maximize the sale price of your practice.
In conclusion, selling a veterinary practice requires careful planning and preparation. By meeting with your financial advisor, having a formal veterinary practice valuation, evaluating your fees and key performance indicators often, maintaining well organized financials,maintaining a positive social media profile, and developing a detailed business plan, you will set yourself and your practice up for success, and avoid a “fire sale” scenario to achieve the best possible outcome for your practice. Remember that preparation is key to a successful sale, so start planning as soon as possible to ensure a smooth transition and a comfortable retirement.