The demands of running a successful veterinary practice sale can take a toll, especially if you’re not ready for the next phase of your career. In some cases, a veterinary practice sale is the only option. But before you sell, it’s important to consider all your options.
You can sell your clinic in two ways: an asset sale or a stock sale. In an asset sale, you transfer the tangible and intangible assets, including liabilities, to a new owner at closing. In a stock sale, you transfer ownership of the business to the buyer, and they assume management responsibility for the company.
The Veterinary Practice Sale Handbook: A Comprehensive Guide for Success
When evaluating your practice for sale, you’ll want to consider the value of each tangible and intangible asset. Tangible assets can include your physical building, equipment and supplies. Intangible assets can include a solid reputation, client lists and referral sources.
Your location is also an asset when selling your vet practice. A desirable location will make it easier for clients to reach your clinic and reduce travel costs. Specialization is another valuable asset. For example, a small animal practice is more desirable to potential buyers than a large animal practice.
When evaluating your practice for sale, financial reports should be corrected to reflect owners’ compensation for their work as veterinarians as if they were associates, rather than partners. This will avoid overstating profits and will help to ensure that the valuation of your practice is accurate. Your veterinary broker can provide helpful insights into the market trends that are specific to your entity.