We understand that preparation for a veterinary practice sale takes time and effort. That is why we veterinary clinic brokers asked our co-founder, William Griffin, for tips that you, as a practitioner, should focus on or consider before selling veterinary practice. As a former practice owner and co-founder of Pathway Vet Alliance, Bill has a unique perspective on practice sales.
Get outside advice. Talking with your accountant or a financial planner is one of the first and most significant steps that you should consider. First, your adviser will help you to evaluate how much money you will need to live comfortably after selling and we explain why it matters below. Second, they will help you understand what to expect as the sale progresses and afterwards. In addition, expert financial advice may help you to minimize tax consequences, as well as future liability.
Take care of your finances. A potential buyer will want to see your financial statements. Those interested in buying a veterinary practice without reviewing its financial history should not be considered legitimate business partners. As standard financial reports do not reflect profitability, focus on determining EBITDA correctly. This will not only reflect the most accurate number for the seller but also can help you to improve the practice’s performance.
Deal with the corporate records. Pay extra attention to this point if you sell your practice as a stock or asset sale, or incorporated practice (limited liability company). Make sure your corporate records are up-to-date, including documents associated with forming the company, bylaws, business licenses, and minutes of all board meetings.
Have an idea of who you wish to sell to. Finding a potential buyer may be difficult if you do not establish a network of prospects in advance. Building long-term relationships with other veterinarians can be useful as you will be able to choose the buyer who has similar values and vision as you do. Also, being familiar or having an established relationship with the buyer will most likely minimize the stress when you sell your veterinary practice. Talking to people at conferences and trade shows is a good place to start.
Be careful with the contract. Once you sell, most of the time, it’s considered a done deal, which means you cannot change your decision after you sell. That’s why you need to decide what role you want to assume after the sale.
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