There are many reasons that veterinarians decide to sell their practices, including career changes and retirement. Regardless of the reason, if you’re considering selling your practice, you should have a basic understanding of the process. In this article, we provide an overview of the veterinary practice sales process.
Steps in the Veterinary Practice Sales Process
Deciding to sell: For most veterinary practice owners, the decision of whether to sell is a difficult one. The first thing to determine when deciding whether to sell is the value of your practice. Without a solid understanding of the value of your practice, selling it can be difficult. Luckily, when you work with an experienced veterinary attorney, he will help you arrive at an accurate value for your practice.
Finding a purchaser: Once you’ve determined the value of your practice, your next step is to find a potential buyer. Selling your practice can be a long and involved process, so it is important to use discretion when reaching out to potential purchasers of your practice. Possible buyers may include:
- Veterinary consolidators
- Veterinary corporations
- Private equity groups
Negotiating a deal: After finding a buyer, you must construct a fair and straightforward deal. Negotiating a deal can be complicated, so hiring a veterinary attorney to assist you with the process is advisable. Documents used during this stage include a letter of intent, which establishes the first official communication between you and the potential buyer, and a contract that finalizes the deal’s terms.
Closing: Finally, after you determine the price and draft the contract, you must finish the process by closing the deal. Like the other steps above, closing can be complicated, so hiring a veterinary attorney to guide you through the process is advisable.
How a Veterinary Attorney Can Help
The veterinary practice sales process is extremely complicated. Therefore, in order to avoid common pitfalls, you should consider hiring an experienced veterinary attorney. An experienced veterinary attorney will help you get the most out of the sale of your practice by providing the following services:
- Accurately valuing your veterinary practice
- Promoting the sale of your veterinary practice
- Locating a buyer through a network of professionals, including veterinarians, brokers, and lawyers
- Negotiating the terms of the transaction
- Preparing legal documents, such as a letter of intent, purchase agreement, confidentiality agreement, and non-compete agreement
- Ensuring proper transfer of certain assets
- Counseling on governance and regulatory matters
- Tax planning
- Representation at closing
Contact Our Experienced Veterinary Attorneys
When selling a veterinary practice, you must take steps to ensure that you maximize the return on your investment. When you consult Mahan Law, 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 set up a consultation.