So you are looking at selling your veterinary practice. Where do you start? What are the next steps you need to take?
Selling your vet practice is a big step and one we know you will not be taken lightly.
It can be a stressful time, both financially, emotionally and mentally. It is important to ensure you make a sound business decision that takes all of these factors into account.
So let’s look at some issues to take into consideration when you are looking at selling your practice.
Steps to Selling your Vet Practice
Establish your asking price
First and foremost, you want to establish your asking price. What value do you put on your veterinary business? An accountant with expertise in the veterinary field can assist in determining a fair and justifiable asking price for the sale.
Whether you engage in a private sale or to a corporate consolidator, know your practice worth and the limits to which you will negotiate. If a corporate consolidator is not willing to negotiate on your terms, then they may not be the right fit for you.
Know you don’t have to jump at the first offer. Find the buyer that is the right match for your practice.
A qualified Financial Advisor can help you to determine how much money you’ll need to comfortably walk away from your practice. Whether it be to retire or pursue other avenues.
Delegate to your team
If you are a very hands-on business owner, now is the time to start delegating to your staff.
Give them more responsibilities so when the new owner comes on board, the team is confident in running the business to assist with a smooth transition. New owners will want to know the business is supported by a great team. A team that values a successful business operation as much as you do.
In the end, delegating to your existing team will make the sale more palatable for you in the long run as you are not leaving your staff in the lurch. Instead, you are providing the chance for more responsibility and highlighting to new owners what a productive and efficient team you have on board.
Share access to your systems. Get set processes and procedures in place that cover your practice manager responsibilities.
This in turn will create a sense of loyalty to the practice, as opposed to loyalty to you as a business owner. This is an imperative delineation when selling a business.
Potential buyers will be more attracted to a sale whereby staff are loyal to the business and willing to stay on, as opposed to leaving along with a previous owner.
Let others take the lead
When you leave your practice, the revenue stream cannot leave along with you.
Where possible, start stepping back in your day-to-day operations in the practice. Let your other practice vets start taking more of the workload, so when you leave, revenue continues to come in.
The value of an Advisor
Meeting with an accountant or advisor is highly recommended when looking to sell your practice.
Not only can they assist you in preparing the business for sale, but also advise on any tax implications of the sale. In the end, you want to pay as minimal tax as possible. An adviser will help you achieve this with effective tax planning strategies.
For example, putting off selling your practice by just a year may help you to avoid costly Capital Gains Tax. Whilst it might not be a factor you consider in your sale process, you will want to know the ideal time to sell based on the tax implications.
Have faith in your Advisors
Selling any business can be an emotional rollercoaster. Especially if you have built the business from the ground up.
Have faith in your advisors – whether they are your accountant, legal team or broker. They will help to find the best sale and most suitable new owner to take over your business and achieve the best sale possible.
If you would like to discuss the implications of selling your vet practice, give our team a call or book an appointment. We specialise in sales and financial advice and support for the veterinary industry and can help advise on the future sale of your business.
