If you’re thinking about selling your veterinary practice, you should ensure that you’re fully informed prior to placing it on the market. Selling a practice can be complicated, and there are certain pitfalls you need to avoid in order to ensure a successful transaction. Below are some things to consider before you sell your veterinary practice. For additional information, please contact our veterinary practice attorneys.
What to Consider Before Selling Your Practice
If you’re considering selling your practice, one of the first things you should do is have it appraised. By getting a professional appraisal, you’ll begin the sale process with an accurate assessment of your practice’s worth, thereby avoiding pricing it too high or too low. This can go a long way towards attracting potential buyers. While there are many qualified appraisers we always recommend certified appraisers that are members of the VetPartners Valuation Counsel as they not only practice exclusively in the are of veterinary appraisals, but also have access to the Simmons database of recent sale data.
Before selling your veterinary practice, you should be prepared for potential buyers to request your tax returns and interim statements. In addition, you should ensure that your financial management system is up to date and capable of producing timely financial statements.
If your practice has a recent history of declining revenue or commingled personal expenses, you may want to address these issues prior to making a listing.
Furthermore, there is a trend in today’s world to take advantage of corporate buyers, but there are many other items you should consider as part of your exit plan such as your retirement goals, working future, personal finances, hospital growth (or decline), etc.
When selling a veterinary practice, potential buyers can come from anywhere. However, it will be difficult to quickly sell your practice if you don’t already have a network of potential buyers. An obvious place to begin is other veterinarians with whom you have long-term relationships (i.e. associates). Ideally, you’ll choose a buyer who you can trust to continue your legacy in your community. A veterinary specific broker can assist you with finding such buyers. Of course, there are also many corporate groups interested in buying practices. Lastly, you may want to consider merging your practice with a competitor or allowing a larger company to buy you out.
Finally, it’s important for you to be candid with your employees when you make the decision to sell. A successful veterinary practice requires a great staff, so your employees should be treated fairly leading up to the sale. In addition, your staff can be a great asset during on-site visits by potential purchasers. Your sale has a much better chance of success if you have a great staff in place, and they’ll be more eager to make a good impression on potential buyers if you keep them in the loop from the beginning.
Contact Our Experienced Veterinary Attorneys
If you think that the time is right to sell your veterinary practice, you need an experienced veterinary attorney on your side. At Mahan Law, we will utilize our extensive experience and vast network of co-counsel attorneys to ensure that your sale is a success. And although selling a veterinary practice is a complicated process, our attorneys have the knowledge and skills necessary to get the job done efficiently, effectively, and profitably. When you choose Mahan Law to handle your transaction, you can rest assured that we will protect your interests and help you achieve your objectives. Please contact us today for a consultation.