Starting your own or buying an existing veterinary practice may have been a dream come true, but things can change. Whether retirement is around the corner or your lifestyle has shifted, understanding the best exit strategies in the veterinary business could streamline the upcoming transition.
What is a good exit strategy for a business that’s given you so much over the years? Read on for a few ideas that can help you make a decision.
Could Your Veterinary Practice Benefit From Corporate Ownership Options?
It’s true that corporations are buying up private veterinary practices nationwide, with an estimated 25% of pet care facilities now included. Why are corporations going this route?
A recent YPulse survey revealed that 76% of millennials have pets. More people than ever are spending money on their animals, including keeping them healthy.
The essential services provided in the veterinary field mean it is less likely that recession can erode its profitability. Low interest rates and positive economic growth make your veterinary practice an appealing investment for corporations.
According to the AVMA, during the COVID-19 pandemic, United States veterinary businesses grew 12%. Your veterinary practices’ high valuation will likely continue, which may draw more offers.
What Is an Example of an Exit Strategy in a Business Plan?
Before you agree to sell your veterinary practice to a corporation or anyone else, you need a fleshed-out plan for exit. What is a good exit strategy for business owners overall? One that helps you achieve your goals.
In some cases, selling will come easy. However, many practice owners find clear and in-depth exit strategies in the veterinary business a lifeline. Start with the following exit strategy timeline for selling your veterinary practice, and go from there:
3 Years Ahead of Selling
- Determine your post-sale goals. Do you want to retire? What lifestyle do you want?
- Choose a top-quality consultant/appraiser/valuator to evaluate your practice.
- Figure out where your practice can improve on profits and saleability.
- Rely on your practice consultant for objective advice.
- Consider potential buyers and buyer scenarios.
1 Year Ahead of Selling
- Contact a broker well-versed in the veterinary practice market.
- Clean, repair, and upgrade your facility.
- Get associates to sign non-compete agreements.
- Contact a financial planner.
- Order a commercial real-estate appraisal.
- Prepare contracts and employee records.
Exit Strategies for Your Veterinary Business When Corporate Isn’t Interested
While corporations are buying up many practices, this won’t always be viable. So, what is the most common exit strategy for veterinarians who don’t have this option? Consider merging with a local competitor, investing in an associate, or adding an additional veterinarian to your practice to draw in more clients and breathe fresh life into things as you prepare to move on.
Total Practice Solutions Group: Helping You Find the Best Exit Strategies in the Veterinary Business
What is the best exit strategy for you and your veterinary practice? Find out by working with Total Practice Solutions Group for expert guidance on selling practices and transitioning for your life’s next big adventure.
Are you ready for a change? Call Total Practice Solutions Group at 1-844-908-2967 to learn more about viable exit strategies in the veterinary business and more.