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Deciding to sell your veterinary practice is a significant undertaking requiring careful planning and meticulous attention to detail. Beyond the clinical and operational aspects, potential buyers meticulously scrutinise various business elements before deciding to acquire a practice. In this article, we will delve into a comprehensive checklist tailored to ensure your veterinary practice is well-prepared for sale, covering everything from ownership details to the cultural nuances that define your practice.
Preparing your veterinary practice for sale starts with ensuring absolute clarity in ownership details. Assess whether any third parties are involved, as their inclusion could complicate the sale process. Identifying and resolving such issues in advance can streamline the transaction and make your practice more appealing to prospective buyers.
Location is paramount for veterinary practices, with most buyers placing significant goodwill on a practice’s geographical positioning. Ensure you have ample time remaining on your lease or explore options for an extension. A secure and favourable lease agreement can enhance the value of your practice in the eyes of potential buyers.
Clearly articulate the separation and availability of rent payments and outgoings associated with the practice. Transparency in financial matters builds trust with potential buyers and contributes to a smoother transition process.
Creating e a properly documented asset register for your veterinary practice is a critical yet often overlooked aspect of the sale process. Prospective buyers will appreciate a detailed and organised list of assets showcasing the value they will inherit with the acquisition.
Identify and extract personal expenditures from your accounts to present a normalised view of your practice’s financial performance. This step significantly affects EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) and can influence the perceived profitability of your practice.
Ensure that all contractor and employee agreements are in place and clearly defined. Document terms and conditions, including details such as uniform allowances, to provide a comprehensive overview to potential buyers.
Compile comprehensive policy and procedure documentation. Many key veterinary acquirers inquire about this, and having a well-documented set of protocols showcases your practice’s professionalism and efficiency.
If prepayments have been made, ensure they are well-documented and can be normalised. Transparent financial records instil confidence in potential buyers and contribute to a smoother negotiation process.
Keep your statutory accounts up to date and have current year-to-date management accounts available. This demonstrates financial stability and enables potential buyers to make informed decisions.
Make practitioner production reports readily available. These reports provide insights into the productivity and performance of individual practitioners within the practice, allowing potential buyers to assess the team’s overall efficiency.
An up-to-date website serves as the initial reference point for potential acquirers. Ensure that your online presence accurately reflects the quality and professionalism of your veterinary practice. The same applies to any social media pages you manage; having up-to-date posts reflects how your overall business is managed.
Articulate and describe the culture that exists within your practice. Culture can significantly impact the success of a transition, and potential buyers are increasingly interested in understanding the dynamics and values of the team they may inherit.
Maintain an up-to-date staff profile that includes key information about each team member. This comprehensive overview helps potential buyers understand the skills and qualifications of your staff, contributing to their assessment of the practice’s overall strength.
Preparing your veterinary practice for sale is a multifaceted undertaking that requires a nuanced approach encompassing the clinical and operational aspects and the intricate details that potential buyers meticulously scrutinise. By meticulously organising ownership details, financial records, contractual agreements, and cultural aspects, you can enhance the attractiveness of your practice and facilitate a smoother transition for both parties involved.
Taking the time to prepare comprehensively goes beyond mere compliance; it becomes a strategic investment that maximises the value of your veterinary practice and contributes to a successful and seamless sale process. In an industry where reputation and trust play pivotal roles, a well-prepared sale sets the foundation for continued excellence in veterinary care, even under new ownership.
As you embark on this journey, consider this checklist your guiding companion, ensuring that every aspect is thoroughly addressed. Remember, your veterinary practice is not just a business; it is a culmination of dedicated efforts, compassionate care, and a legacy that deserves to transition smoothly into the capable hands of those who share your commitment to animal well-being.
Carl Burroughs has been at the forefront of professional services business development in Australia since 2001. His marketing company, Integrated Dental Marketing (IDM), has helped hundreds of dental practices achieve their goals through proactive marketing and advertising campaigns. Carl has personally consulted with many of the dental corporations and groups that have emerged within the profession over the past 20 years. More recently, Carl co-founded Ray White Practice Sales, which is a brokerage service dedicated to helping the Veterinarian and Dental sectors. Although still in its first year of operation, Ray White Practice Sales has consulted with dozens of Vet Practices around Australia and helped achieve outstanding outcomes for the Vet Practice owners they represent.
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