If you’re considering retiring or putting your vet practice up for sale, it pays to begin planning sooner rather than later.
Everyone’s situation is different, and so is every practice. This means you should always seek independent advice from your trusted advisers as you prepare your vet practice for sale. After all, they can provide you with tailored advice that considers your needs and circumstances. All that said, while everyone’s situation is different, there are some general things to consider. We explore several of these in more detail below.
It seems pretty obvious that a veterinary practice with a higher value will fetch more money when it’s sold. But have you stopped to think about how you can add measurable value to your practice before you sell?
Consistent revenue (or, even better, long-term growth) looks great on a balance sheet and will certainly increase your vet practice’s value. Your accountant may be able to help you identify ways to increase your practice’s revenue from a plain numbers perspective, while a business coach may be able to help you identify how you can attract new pet owners to your practice or boost visits and revenue from existing clients.
Another way to increase your vet practice’s value is to invest in the premises itself. A tired, run-down, or outdated practice will be valued well below a modern, refurbished one. As such, it may be worth refurbishing your vet practice before you go to market. Doing this a couple of years before you sell will also let you enjoy the benefits it brings and may even be a way to boost your revenue by attracting more pet owners to your practice.
Understanding your lease is a very important preparatory step when selling your veterinary practice. You need to identify how easily you can transfer your practice’s lease to a new owner if you do plan to sell. This is an area where it pays to plan ahead. So consider speaking to your legal advisors to understand how your lease may affect the sale of your practice.
Many veterinary practices are sometimes sold to new vets from outside the business. But others are also sold to existing vets within the business. If you have a vet (or several) working at your practice who is interested in buying the practice, you may want to investigate whether a formal succession plan. This will allow you to transfer the business to someone you know on a timeline that works for both of you.
If you’re considering refurbishing your vet practice before going to market, we can help. Contact Elite today via our contact form.