August 26, 2021
Whether you’re looking for a career change, you’re retiring, or your circumstances have recently changed, you may be thinking, ‘I would like to sell my veterinary practice.
It can be difficult knowing where to begin when you want to sell your practice, as there are a lot of intricate details that go into it. Here are some of the critical steps you should follow if you want a successful sale.
Many business owners struggle to know when to put their veterinary clinic for sale on the market. If you’re considering selling your practice, you must always take time to understand how much it is worth. Once you know this, you need to factor this into your retirement plans. You then need to create a work back schedule, factoring in, for example, the time it takes to sell and the time required to restructure if needed.
Once you’ve understood your value and know your optimum sale structure, you can start to search for potential buyers. It’s essential to take careful consideration in choosing to whom you sell your practice, as the buying process is long and complex. Many types of buyers are looking for veterinary practices for sale.
1. Associate Vet. Many vets choose to sell their share of the business to their associates. This is a great option, as the associate is knowledgeable about how the business runs and the office culture, and they will already have an existing relationship with current patients.
2. Partners. Those who have invested in the practice may or may not be vets themselves. However, it can be beneficial selling to them and helping them to find a new practice manager or lead vet for the business once you leave.
3. Entrepreneurial veterinarian. There are still a few veterinarians out there looking to strike out on their own. It can be challenging to find these individuals, but using a transaction advisor, like EVCOR, can assist in the process.
4. Competition. If you’re thinking, ‘I want to sell my veterinary practice to a local veterinary group,’ this might be the option for you. You will likely get a great deal as it may be a strategic purchase, and the buyers will already have the necessary expertise to continue the practice’s success.
5. Private equity or consolidators. Corporations or business owners may wish to invest in your veterinary practice to build their portfolios and extend into other business verticals. Selling to a large investor group is, therefore, another viable option for you.
After deciding on a buyer, it’s time to negotiate a deal. Make sure you obtain a non-disclosure agreement to minimize the chance of the other party discussing the terms of the deal until it has been completed. Once this has been signed, you can provide information, and your suitor can volley their first offer.
Finishing the transaction involves signing contracts, exchanging money, and informing staff members that you’ve sold the practice in a thoughtful manner.
EVCOR commonly gets asked, ‘how can I sell my veterinary practice?’ Contact the team today to learn more about how you can do just that.