Selling Your Practice
Components of the content supplied within this page can be credited back to Simmons & Associates Inc., Veterinary Sales & Appraisals.
For any queries you may have regarding Veterinary Sales or Purchases, visit the Simmons & Associates Inc. website.
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I have decided to sell my practice. What’s the next step?
Selling your practice is a process. One of the first steps is to assess the fair market value of your practice. You should also ask your accountant about all the tax issues you should be aware of following the sale.
Who are the potential buyers of my practice?
The current generation buyers are quite different from the ones before them. Nowadays they have a flair for business; they are good computer users, and they know about and how to use financial analysis tools in order to assess the financial health of a practice.
Furthermore, today’s graduates have a tendency to balance personal and professional life. As such, they prefer an income that is high enough to pay their education debt and the remainder of it constitutes a decent salary.
Knowing these things about today’s buyers offers you a better perspective, which would allow you to present your practice in an appealing package.
What are the chief elements for a buyer?
In business, just like in everyday life, the first impression carries a lot of weight. The aspect of the facility where your practice is located, a cordial approach and a suitable conversation will all have considerable impact on the sale process. They will make the balance go towards a smooth or a bumpy sale of your practice.
What benefits do I get if I sell my practice with the aid of a broker?
The broker will assist you with all the steps of the sale process – establishing a fair price, advertise the sale, answer any inquiries, assist you with getting any needed financing, and bring the deal to a successful closure. Most importantly, if the broker does all these things it means you don’t have to. You will thus have the time to do what you do best – practice veterinary medicine and not neglect your business.
To get the most out of a brokerage deal, you should look for a broker with a solid track of successful transactions in this area and with a hefty amount of experience in assisting veterinary practice owners in sales processes.
Is it recommended that I allow the buyer to work in the practice before the deal is closed?
Ideally this is not something you should agree to. When the two sides have agreed on a price, the transaction should be finalised as soon as possible. If the buyer starts working in your practice before it is sold to him/her, the drive to buy the practice may decrease.
Furthermore, there is a risk that the buyer will start to implement changes ahead of the deal which might lead to unwanted effects on the staff as well as change the perspective over how the practice should be managed. Simply put, you will give the buyer more power than he is entitled to and more information on your practice than you want him/her to have.
Are non-compete agreements vital?
Yes, absolutely. Many sales of practices have been buried by the lack of appropriate non-compete agreements with the associate DVMs in the practice. Furthermore, the buyers expect to have viable non-compete agreements. Not having such agreements could make the value of your practice take a nose dive. Because of this, it is recommended that every new associate in your practice signs a non-compete clause together with his/her contract.
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