Selling a veterinary practice can be complicated, particularly for those who enter the process unprepared. When selling a veterinary practice, any mistake can result in big financial losses, and there are multiple opportunities to make mistakes. Therefore, if you are a veterinary practice owner, you should obtain the services of an experienced veterinary attorney before attempting to sell your practice. Below are some common mistakes veterinary practice owners make when selling their practices.
Failing to Plan Ahead
Veterinary practice owners are often so busy with the day-to-day demands of work that they fail to adequately plan for the eventual sale of their practices. Sometimes, this results in an owner’s practice being held in an unfavorable type of business entity. In other cases, the practice owner fails to maximize the practice’s performance during the period immediately before the sale.
Having Unrealistic Expectations
The value of a business is based on the cash it generates after all expenses are paid, not the business’s gross revenues. Often, sellers form expectations based on gross revenues, and this is a recipe for disappointment. However, by obtaining an accurate idea of the value of a practice at the outset of the sale process, sellers can alleviate much of this frustration.
Veterinary practice owners sometimes attempt to save money by marketing their own practices or by hiring brokers who are inexperienced in the sale of veterinary practices. Others forgo the assistance of accountants and attorneys who are experienced in veterinary practice sales. Unfortunately, although these types of shortcuts may save money in the short term, they can result in huge losses down the road.
In addition, some veterinary practice owners fail to properly organize their affairs so that information can be easily transmitted to prospective purchasers. Veterinary practice sellers who make this mistake give potential buyers an unintended message about the quality of their business practices, and this often results in failed sale opportunities.
If you are a veterinary practice owner who has invested years of your life in building a successful practice, you owe it to yourself to ensure that the sale of your practice isn’t hampered by common mistakes. Luckily, with proper planning and the assistance of an experienced veterinary practice attorney, all of these mistakes can be avoided.
Contact Our Experienced Veterinary Attorneys
While selling a veterinary practice can be complicated, it is well worth it when you can maximize the return on your investment. However, without an experienced legal team on your side, the sale of a veterinary practice can be disastrous. At Mahan Law, we understand what it takes to successfully sell a veterinary practice. When you come to us for assistance, our experienced veterinary attorneys will work hard to ensure that the sale of your veterinary practice is a rewarding experience. Please contact our office today to schedule a consultation.