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.
< Posted on November 15, 2017 by KurtLiljeberg
in Business Valuation, Seller Articles, Seller FAQ
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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.
< Posted on October 17, 2017 by KurtLiljeberg
in Business Valuation, Seller Articles, Seller FAQ
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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.
< Posted on September 15, 2017 by KurtLiljeberg
in Business Valuation, Seller Articles, Seller FAQ
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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/
< Posted on August 15, 2017 by KurtLiljeberg
in Buyer Articles, News, Seller Articles
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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.
< Posted on July 18, 2017 by KurtLiljeberg
in Business Valuation, Buyer Articles, Buyer FAQ, Seller Articles, Seller FAQ
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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.
< Posted on June 15, 2017 by KurtLiljeberg
in Business Valuation, Seller Articles, Seller FAQ
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Practice Buyers, like real estate buyers, should contact practice brokers in the target market to be included on the priority buyer list, so they might have a first chance to see new listings, even before they have made the public advertisements.
< Posted on May 22, 2017 by KurtLiljeberg
in Buyer Articles, Buyer FAQ
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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.
< Posted on April 13, 2017 by KurtLiljeberg
in Seller Articles, Seller FAQ
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Many buyers today are cautious about buying a practice that is seeing its own emergencies. Most buyers do not want that burden on their lifestyle. When preparing to sell, it is best to wean the clients off of seeing emergencies about two years ahead of going to market. This will stop any concern a buyer may have regarding losing clients after the sale by changing that policy suddenly after close.
< Posted on March 16, 2017 by KurtLiljeberg
in Seller Articles, Seller FAQ
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A non-compete agreement from the Seller to Buyer is always an important part of the Asset Purchase Agreement. Without this non-compete component in the agreement, the value or salability of the goodwill is greatly diminished or reduced.
< Posted on February 15, 2017 by KurtLiljeberg
in Buyer Articles, Buyer FAQ, Seller Articles, Seller FAQ
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