What You Should Know About Veterinary Practice Sales Appraisals

A veterinary practice appraisal is a formal opinion of a veterinary clinic’s value based on marketplace conditions and the assets and income of a practice. Getting your veterinary practice appraised is one of the first steps you’ll need to take if you decide to sell your practice. 

Accurate practice valuations require not only real estate and financial expertise, but also niche insight into the veterinary profession. At Total Practice Solutions Group, our team of brokers is made up of former veterinarians and industry professionals, so you can be sure a practice appraisal performed by us is both accurate and fair to buyers and sellers.

Read on to learn more about the practice valuation process and veterinary practice sales appraisals.

Veterinary Practice Valuation Formula

Practice value is based on a variety of factors, the most important of which is profitability. High practice profits mean higher cash flow for a buyer who is looking at your practice. This means an increased value for you at the time of sale.

Other factors that impact a practice valuation include

  • Projected practice growth
  • Tangible assets, such as lab equipment or diagnostic machinery
  • Geographic location
  • Existing client loyalty
  • Community goodwill

There is no one formula that will determine the value of a practice and no single valuation method that can be applied to all practices. In order to arrive at the precise price for a practice, the entire practice and all unique factors and variables must be considered. 

How to Improve a Veterinary Practice Appraisal

If you’re preparing to sell your veterinary practice, you of course want to get the most value possible. To receive the highest valuation possible at the time you’re ready to sell, we recommend getting your practice appraised three to five years before you plan. In doing this, you can identify a baseline value for your practice and pinpoint potential areas of improvement.

If you’re considering a long-term practice sale plan, boosting the marketability of your practice over time is a great way to improve practice value. Engage and expand your client base through digital marketing, form new professional relationships, and establish corporate partnerships can help your practice become a valuable resource for potential buyers. By increasing the marketing value of your practice, you can potentially increase the sale value simultaneously. 

Get a Veterinary Practice Appraisal Today

The brokers at Total Practice Solutions Group are experts in the veterinary profession. Our team is made up of licensed veterinarians, owners, brokers, attorneys, and appraisers. We understand the marketplace and bring diversity and expertise to ensure the process runs smoothly and fairly. All appraisals conducted with our brokers are done in an environment of confidentiality. 

If you’re interested in getting your veterinary practice appraised, contact us today!