Selling a Veterinary Practice is a Complicated Process. Don’t go it alone.
Selling a veterinary practice is a complicated process that involves numerous steps including determining the market value of your practice, finding the right buyer, negotiating the purchase price, purchase agreement and lease assignment and facilitating the transition of the ownership (just to name a few). Employing the services of a trusted professional can make a tremendous difference in the success of your transition. Here are the top 5 reasons to hire a practice broker when selling a veterinary practice:
1. Maximize the value you receive for your practice. Reality is, “The Amount of money you are leaving on the table” is significant.
Your veterinary practice is one of your most valuable assets and the proceeds of the sale will likely be used to fund a significant portion of your retirement. Therefore, it’s crucial that you maximize the value of your clinic at the time of sale. Determining the market value of your practice, articulating the practice value to potential buyers and their advisors, and maximizing the price you receive at closing are key responsibilities of a practice broker. Practice brokers are typically paid a commission based upon a percentage of the practice sales price.
2. Formulate a transition strategy to meet your Individual needs.
Not all practices and all doctors are the same. I will listen to your specific needs and goals to develop an individually tailored transition strategy that fits your situation. There are many ways to structure a practice transition. The most common ways are a walk-away sale, associate to purchase, phased sale and partnership arrangement. When selling a veterinary practice, choosing the right transition strategy for you and your practice is the first step towards a successful transition.
3. Confidentially market your practice to find a buyer who is the right fit.
I prequalify the buyer and get non-disclosure agreements. We don’t waste your time. We market your practice to a broader range of potential buyers, thereby increasing the likelihood of finding a doctor who is an ideal fit for your office. In addition, we help shorten the timeframe required to complete the sale. The broker will schedule practice showings and oversee all communication with potential buyers and their advisors, which can take a significant amount of time and effort. Delegating this responsibility to a seasoned professional will allow you to focus on the operation of your practice and enjoy your personal time rather than spinning your wheels talking to potential buyers. To protect the value of your practice during the marketing process, each potential buyer will be required to complete a confidentiality agreement prior to receiving any information regarding your practice. We will show your clinic only after business hours or agreed upon hours.
4. Represent your best interests during the transition process.
While a veterinary practice broker’s goal should be to structure a win-win transaction for both parties, the broker should solely represent the best interests of the seller during the sales process. The broker also serves as a buffer between the buyer and seller to preserve the goodwill of the practice and relationship between the parties during negotiations. During the transition period, I will help the buyer understand your practice and be able to show the buyer practice management reports.
5. Provide a structured closing process to ensure a smooth and timely transition of ownership. My personality is to get the job done! I work hard for each client.
Navigating the closing process is often the most tedious and stressful part of selling a veterinary practice. Once you have identified a buyer for the practice, there are numerous steps involved in completing the sale, including negotiating the practice purchase price, letter of intent, asset purchase agreement, assigning the lease, securing practice financing, announcing the sale to the staff and patients, etc. I will walk you through each step of the closing process to ensure a smooth and timely transition of ownership.
These are just a few of the reasons to employ the services of an experienced practice transition consultant when selling your veterinary practice. Planning in advance and building a strong team of advisors will ensure that your practice transition is a success.
