Selling a veterinary practice requires a team of professionals that includes a veterinary broker who can help to maximize the value of the transaction. While the broker acts as an intermediary between the buyer and seller, a successful practice transition also requires the advice and guidance of an experienced veterinary attorney.
At Mahan Law, we represent veterinary practice buyers and sellers throughout the nation. Lead attorney Anthony Mahan is the owner of a veterinary clinic who understands the value a broker can bring to such a transaction. Given that a veterinary practice transition involves several moving parts, it is crucial to have the informed representation we provide. Contact our office today to schedule your initial consultation.
What is the role of a veterinary broker?
If you are considering selling your veterinary practice, preparing for and closing the deal can be challenging while you are practicing medicine and managing the practice. A veterinary broker can help to facilitate the process by:
- Performing a valuation (appraising the practice)
- Marketing the practice to potential buyers
- Negotiating terms of the deal
- Assisting with the practice transition
Ultimately, selling a veterinary practice hinges on establishing a price point; competing buyers will best determine what a practice is worth. In short, a seasoned broker will work to generate enough competition between potential buyers to optimize the sale valuation of the practice.
Job One of a Veterinary Broker: Advocating for the Seller
In a veterinary practice transition, a broker can add value to the transaction by advocating for the seller, negotiating directly with the buyer, and mitigating potential conflicts, particularly in cases where the seller will continue with the practice. By having both a skilled broker and an experienced veterinary attorney working with you, the material terms of the deal can be negotiated before an offer is accepted.
While your attorney irons out details in a well-conceived letter of intent, the broker can oversee the buyer's due diligence. Ultimately, negotiating a non-binding offer requires thorough preparation, and the broker must conduct his or her own due diligence to ensure that there are no surprises.
Vetting Potential Veterinary Buyers
Whether you are selling your veterinary practice to a corporate consolidator or a solo practitioner, a broker can help to vet potential buyers. In this regard, willingness to pay may not equate to being the best buyer. You also need to consider your legacy and find a buyer who will continue to provide high-quality care to your clients' pets. For this reason, the broker should conduct a thorough analysis of key factors such as the buyer's management team, regional focus, and business philosophy.
In smaller markets, there may only be a handful of potential buyers; in other markets, the broker may need to vet hundreds (or thousands) of potential buyers. Ideally, a seasoned broker will have sold or marketed practices to buyers in all types of markets.
Comparing and Contrasting Offers
In many practice sales, selling veterinarians will continue with the practice once it is transitioned, and this lends itself to a variety of deal structures. An offer may include cash, equity in the practice, or an earn-out. A skilled veterinary broker can help you compare offers and identify the benefits and risks of each so that you can achieve your objectives.
Why You Need a Veterinary Attorney
While a broker can help to add value to a practice transition, it takes a skilled veterinary attorney to close the deal. Trust Mahan law to help you navigate all aspects of the intended transaction. We can help you locate a buyer in your region through our nationwide network of veterinary brokers. Our legal team will also:
- Promote the sale of your practice
- Appraise and price your veterinary practice accurately
- Identify potential liabilities
- Negotiate deal terms
- Structure the transaction
- Prepare transaction documents (e.g. letter of intent, purchase agreement, noncompete, and nondisclosure agreements)
- Oversee the closing
- Ensure proper transfer of intangible assets
We have extensive experience negotiating asset purchases, stock purchases, and joint ventures, and will work to establish favorable deal terms. By getting involved at the earliest stage of the process, we can help to protect your interests and ensure that the transaction proceeds smoothly.
Contact our Experienced Veterinary Attorneys
If you are considering selling your veterinary practice, turn to Mahan Law. We regularly work in tandem with veterinary brokers to help our clients maximize the value of the transaction. When you become our client, you will have confidence with our formidable team at your side. Contact our office today to speak with an experienced veterinary attorney.