As we start a new year and with tax season being right around the corner, TPSG recommends that all practice owners seek to have an updated valuation done by an experienced broker. Understanding the true value of your business in a rapidly changing market is the most beneficial information for any clinic owner looking to
Why Do You Need A Valuation? A practice valuation determines Fair Market Value, the amount a buyer is willing to pay in the open market. A practice valuation determines Lending Value, which is the amount a bank is willing to lend a prospective buyer A practice valuation determines the marketability of the practice. Will the
Curbside service. An influx of people with more time on their hands to adopt new pets. Staff experiencing unheard-of levels of exhaustion. If you can relate to any of the above, you probably worked at a veterinary hospital during the coronavirus pandemic. Although there seems to finally be some light at the end of the
Doctors anticipating a career transition of a future practice sale should plan ahead by requesting a practice valuation at least three years before the sale, so if needed management improvements can be made to get the adequate net cash flow to make the practice have some goodwill value. It would be a crisis for doctors
Did you know that staff longevity can affect your practice valuation? When determining the value of a practice, the appraiser examines historical operation factors in conjunction with predictions of future profitability and growth. Attracting and keeping a qualified staff is an important element of your practice’s overall value. Even if you are not planning to
In the last article, Dr. John Bryk explained buyer loan pre–approval, and this month I will explain how Veterinary Financing utilizes Seller Notes. Before I begin, I want to go over the basic terms used in Veterinary Financing. Interest Rate The amount a lender charges for the use of assets expressed as a percentage of
Owners anticipating a practice sale within three years need to have simple and clear tax returns, so the buyer does not see taxable income low from non-operating expenses. If low income is because the doctor included the farm, ranch, or other ancillary business expenses on the tax return, the practice value is decreased. The seller’s
Owners should obtain regular valuations. Having a professional valuation done at least every three years lets you know your practice’s current value and what could be done to enhance it. Three years is also a good length of time to start planning for your exit strategy. Tip by Dr. Len Jones.
It is obvious that there is a lot of uncertainty right now regarding what the near future will look like, much less what things will look like a year or more down the road. It is also apparent that veterinary medicine in, most geographical areas of the US, showed a good bit of resiliency over
Total Practice Solutions Group (TPSG) cash flows practices so buyers only have to work 40-42 hours per week and no more. Working crazy long work weeks should not be a concern to inhibit buyers from purchasing a practice. Tip by Dr. Kurt Liljeberg.
