Total Practice Solutions Group
If you are considering selling your practice within three years, seek advice from a professional sales broker before purchasing or leasing any new equipment.
<August 15, 2018 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. It is very important to continue to show growth even after your practice is listed on the market.
<June 14, 2018 in Business Valuation, 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
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
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
Fair rent for the practice building needs to be arrived at, to calculate the cash flow of a practice. In today’s environment, this figure is 7 to 8% of the appraised value of the real estate, along with the practice paying for taxes, insurance, and maintenance. This would be a triple net lease.
<January 16, 2017 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
Practice sale value and buyer financing may be decreased or denied, if practice tax returns include non-veterinary expenses. Buyers and banks are reluctant to rely on tax returns that have other expenses listed and/or blended with veterinary expenses. The solution is to have at least 3 years of presale tax returns that include only business expenses of the practice, even if taxes paid or CPA costs increase.
<October 10, 2016 in Business Valuation, Seller Articles, Seller FAQ Leave a comment