A practice valuation can give you an in-depth look at the way your practice performs. Whether you want to sell your practice right away or you’re interested in forming a long-term plan, valuation is a good idea. Working with a qualified broker can help avoid some of the most common practice valuation mistakes that could cost you in the long run.
This post will cover critical practice owner mistakes to avoid while protecting your investment. If you want to engage in a more detailed discussion, Total Practice Solutions Group can answer all of your questions, including, “What are the mistakes in business valuation?”
Not Considering Value Until They Get Ready to Sell
Practice owners operate at full speed every day. Many don’t take the time to consider the value of their practice until they want to sell. Keeping track of the value of your practice along the way can be beneficial for a couple reasons.
Monitor Gradual Changes
When you know the value of your practice, you can gain insight into how well it performs over time. You can look back at changes that occurred over several quarters or closely examine daily changes and trends. This insight will help you identify what works in your practice and what changes you need to make to see improvement in the coming months.
Make Long-Term Decisions
As you monitor changes in the value of your practice, you can develop a long-term strategy that suits your financial goals. If you want to sell your practice in five years, you can take steps to increase the value of your practice until it’s time to sell.
Ignoring the Competition
One of the most common errors private practice owners make when selling their practice is not keeping an eye on the competition. These days, that includes both local practices and online practices offering virtual visits.
If the market is thriving, you will get a higher asking price than if the industry has been in a downturn for a long time. Keep an eye on the health of the industry by reading national and state VMA publications, going to conferences, listening to industry leaders, etc. to avoid common practice valuation mistakes like this one.
Getting a Valuation From Someone Who Is Not Qualified
When reviewing valuation mistakes for practice owners to avoid, remember that the person who performs the valuation matters. Practice valuation is a multi-layer process with a lot of room for error. Just because a brokerage offers a valuation service doesn’t mean they have enough experience to accurately value your practice.
Make sure you choose a broker so that none of the common mistakes in practice valuation due to inexperience are made.
Learn More About Your Practice’s Value With The Help Of an Experienced Broker
Recognizing the prevalent errors owners often commit in valuing their practices for sale underscores the crucial need for collaboration with a seasoned brokerage team. Total Practice Solutions Group excels in providing veterinary brokerage solutions. Learn more about the in and outs of what contributes to your practice’s value by contacting us at 1-844-908-2967.