As a veterinarian, purchasing your own practice can be a dream come true. However, if you fail to avoid missteps during the process, it can quickly become your worst nightmare. So, if you are looking to acquire a veterinary practice, you must ensure that you do so in a way that gives you the greatest odds of success. In this article, we discuss how to avoid common pitfalls in veterinary practice acquisitions.
Pitfall #1: Failing to Conduct Due Diligence
Due diligence, in layman’s terms, is the legwork one must do before making an important business decision. So, in the area of veterinary practice acquisitions, due diligence involves evaluating all aspects of a practice, including its reputation, finances, internal workings, and client retention. In other words, when considering a practice for purchase, you should leave no stone unturned. And although it may be tempting to rush through the process, particularly if you believe the practice is an excellent deal, it’s in your best interests to take your time to ensure that you aren’t overlooking any issues that may come back to haunt you in the future.
Pitfall #2: Failing to Have the Right Team Around You
Acquiring a veterinary practice is one of the most important business decisions you’ll ever make. However, it is also a complicated process. Therefore, before attempting to purchase a veterinary practice, you should assemble a strong team. If you fail to have the right team around you, you’ll undoubtably overlook important details that can negatively impact the transaction. Your advisory team, at a minimum, should consist of an experienced veterinary practice acquisition attorney and an accountant.
Pitfall #3: Failing to Consider All Assets
Finally, when acquiring a veterinary practice, you also purchase all its assets, including furnishings and patient records. The seller typically provides a list of assets to the buyer prior to the sale for review. However, as the purchaser, you shouldn’t trust this list. Rather, you should tour the facilities and view the inventory for yourself. By considering all assets and inspecting them yourself, you and your team will be in a better position to arrive at a fair offer price.
The Bottom Line
Veterinary practice transactions are complicated, and any mistakes made during the process can be costly. Therefore, if you are planning on acquiring a veterinary practice, you need an experienced team on your side, including a knowledgeable acquisition attorney. When you hire an experienced acquisition attorney to assist you, he or she will take the steps necessary to ensure that your transaction is conducted properly and that you obtain the best deal possible.
Contact an Experienced Veterinary Practice Acquisition Attorney
At Mahan Law, our experienced acquisition attorneys are here to help ensure that you avoid the many pitfalls inherent in the veterinary practice transaction process. If you are interested in purchasing a veterinary practice, our experienced veterinary team will take the steps necessary to give you the best odds of success. Please contact us to arrange an initial consultation with an experienced veterinary practice acquisition attorney.