Selling a veterinary practice is a smart choice but not because the vet business is going through a rough patch, or because the sector as a whole does not offer great revenue in the long term.
The main reason is that we at Vet’s Best Friend are eager at helping these amazing professionals at thriving both economically and personally, offering them great planning options to make the best out of their knowledge and passion to care for our furry friends.
Let’s revise some important approaches you should always consider when looking to promote a veterinary practice acquisition and what you should consider when doing your veterinary practice appraisal from the owner’s point of view.
Rely on the experts when designing your strategy
Can you imagine your client performing an ovariohysterectomy? At the very least, they would kill the animal before even approaching the operating table, just with the anesthesia. This is the same when a veterinarian proposes, without any training, to buy and sell your business.
Perhaps fifteen years ago, it was possible, because, as in everything else, buying and selling have evolved. Before, it was not like that because there was plenty of work, the door of the clinic was opened and the clients came in in droves, and therefore nobody looked at the EBITDA, nor did they know what it was because it was not even necessary. And neither did they have the control mechanisms they have now.
In short, everything was different. But now specialized personnel are required to mediate in the purchase and sale: consultants, lawyers, notaries, managers, advisors, etc. And be thankful that this is so because it ensures both the legality of the purchase-sale processes along with the viability of a particular exit strategy.
Things are worth what they are worth
In the line of what we have commented, whether we like it or not, things are worth economically what they are worth. Neither is it a question of giving it away nor is it a question of asking for what does not make sense. If a business invoices X, you cannot ask for 2X or a crazy figure.
Keep in mind that the one who buys has to earn money. There’s no buyer that wants to acquire something just as a reward for your successful work life. Therefore, a fair price is essential to reach an agreement. Among other things, this includes having a consistent valuation and having a good balance sheet and EBITDA.
Final remarks on how to sell your practice
When designing a proper strategy for a veterinary practice sale, we’ve covered some of the major aspects of the process. Along with relying on experts for an effective valuation and being honest about your practice’s financial performances, you should look for professionals that have recent experience on the status of the business.
This will allow for the whole process to take a more accurate and beneficial look for both the seller and the buyer, which is why we encourage you to call 617-987-4910 or visit our website. Our team will be waiting for you and ready to help you make the best out of this heartwarming business.