Total Practice Solutions Group
Price is only one component of a practice sale. The second component is terms. Terms can make or break a sale. How much cash up front? How long do you stay after the sale? What are the real estate purchase or lease terms? Call us to review your current offers.
<April 16, 2018 in Seller Articles, Seller FAQ Leave a comment
Do not comingle personal expenses with practice finances when contemplating a sale.
<March 14, 2018 in Business Valuation, Seller FAQ Leave a comment
Practice sales, even to corporations, are negotiable transactions. Commonly brokers are able to obtain a higher sale price offer, even from corporations. A broker may explain an increased earnings calculation and/or obtain multiple offers from several corporate buyers. This allows the seller to pick the highest bid offer, if they choose. Some corporations have a specific need for a specific practice location and are willing to pay more for it.
<January 15, 2018 in Seller Articles, Seller FAQ Leave a comment
Many Sellers are being approached by Corporate Buyers and should have a professional, such as a Broker, to guide them through the process. The Brokers at TPSG are experts in dealing with these companies and are available to assist you.
<December 18, 2017 in Seller Articles, Seller FAQ Leave a comment
Be sure when entering into new agreements for equipment, that you understand clearly if it is a true lease of the equipment, a rental of the equipment or a product usage agreement. The terms of these agreements and the payoffs, should you decide to sell your practice prior to the end of the agreement, are vastly different. Not being fully aware of how these agreements work can cost you tens of thousands of dollars at the closing table.
<November 15, 2017 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
TPSG’s solid relationships with practice and real estate lenders, as well as our experience and understanding of the veterinary practice industry, strengthens your chances of obtaining 80 to 100% of purchase price of the practice asset and 85% of the cost of the real estate from the lenders.
<October 17, 2017 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
The best time to improve the value of your practice is now. Keep good financial records, report all of your income to maximize the value of your practice, keep your office and equipment well maintained, and continue to grow your practice. Financial statements should go back three or more years to determine growth patterns, but most important; is to show growth even after your practice is listed on the market.
<September 15, 2017 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
As a buyer, or a seller, it is smart to keep abreast of the practices for sale in your market area. TPSG’s new website feature for Buyer Notifications delivers a summary of new listings to your email every week. Sign up at: http://www.tpsgsales.com/subscribe/
<August 15, 2017 in Buyer Articles, News, Seller Articles Leave a comment
It is important to remember the capitalization rate is at the discretion of the evaluator. Important factors that determine one’s rate are location, growth of revenue stream, ability to transfer goodwill and demographics. Lower capitalization rates indicate greater risk to the investor while higher rates are associated with less risk.
<July 18, 2017 in Business Valuation, Buyer Articles, Buyer FAQ, Seller Articles, Seller FAQ Leave a comment
Sellers sometimes assume a sale should be a simple do it yourself project, but after a sale closing, they realize a broker valuation to maximize sale price and a broker’s experience to explain the ‘why’ regarding allocation for asset values being sold was needed. Asset closing allocations are commonly negotiation issues, requiring broker and tax professional help, not one side’s data.
<June 15, 2017 in Business Valuation, Seller Articles, Seller FAQ Leave a comment