Advice for Selling a Vet Practice

As a veterinarian, the thought ‘when do I sell my veterinarian practice’ is hard to process considering the many variables. Things like its potential value, the emotional layers of selling, and what your next move will post-exit come to mind.

The decision to sell a veterinary practice may be prompted by a desired career change, retirement aspirations, or a change in life circumstances. Asking yourself the right questions and successfully navigating potential pitfalls with the selling process will help you ease the burden as you sell a veterinary practice to the highest bidder. The following tips should help make those decisions:

Know Your Worth

The emotions and procedures involved in the sale of veterinary practices are wide-ranging. However, before you can process those elements, you should first know if the move is feasible at all buy dining table online. Its feasibility depends on how much the practice is worth on the open market.

You have to understand how much your practice is worth, so you know what to expect when a sale comes to fruition. Never sell your practice based on what you have heard is the current rule of thumb. Hiring an experienced valuator is the only sure method of determining the fair market value.

Finding Prospective Buyers

When finding potential buyers, you must show discretion, especially since the selling process is tedious and some may not qualify for financing.

You could opt to sell your shares in the practice to an associate veterinarian, given that they’re already familiar with the day-to-day operations and have strong relationships with patients. You should gauge their interest and understand their professional goals before engaging the associate. You could sell a veterinary practice to a veterinarian looking to branch out on their own as well.

Or, you can sell the practice to a large investor group. Private equity will consider veterinary practices for sale as they look to diversify their investment portfolio. Selling to private equity works as long as you have a good business model, financial statements, and consistent revenue. The investor group wants a business that is a going concern; they rarely are looking for a “fixer-upper.”

Negotiating and Closing the Deal

Ensure that you have a solid letter of intent to establish a solid framework for the definitive agreements. The buyer will use the letter of intent to form the final agreements coffee table online. Ensure you have a corporate lawyer with veterinary practice transactions. Work diligently to complete the sale contract as it is necessary to obtain financing.

To ensure a successful closing, you need to diplomatically inform your staff and be aware that sometimes they do not take the news well.

Seeking a valuation of your practice or looking for help with your exit strategy? Contact EVCOR for more information on our services.