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
If practice transition or future veterinary practice sale is part of your short-term plans, and you own the real estate/facility, please update your rent value, even if your accountant is advising you to keep it different than market rates and what you would charge a buyer. Valuators must adjust practice rent to market rates, which
When considering selling your practice, tracking production is very important, even in a 1 DVM practice. Having at least three years of accurate production before listing your practice gives potential buyers confidence in considering your practice. Using your practice management software correctly and to its fullest potential can greatly increase the value of your practice.
This is one of the most common questions we get as Brokers. The answer has a lot of variables, but is important for Doctors to plan for their exit from practice and their life after they sell. The variables are, location, number of Doctors, size of hospital, and strength of cash flow/price. We will try
It is important for Solo Doctor practice owners to know that current buyers in the market are mostly looking for 1.5 to 2 Doctor practices. As they develop their exit strategy they may need to consider expanding their practice to meet the market demand. Solo Doctor practices are a hard sell in today’s market. Tip
The sales price is just one of many important factors to consider when selling your practice. Terms, stock options, partnerships, and earn-outs are equally as crucial. Tip by Dr. John Bryk and Dr. Bill Crank.
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
TPSG recommends that owners do not sign any new five year equipment leases if you are getting ready to put your practice on the market. The offer may be tempting but the buyer(s) may not want to assume the new debt. In addition, that debt may lower your practice value. Tip by Dr. Kurt Liljeberg.
We all teach and preach on all the items you should do to maximize your Practice Value when getting ready to sell your practice. Here are some things you should not do when it is time to sell. Most veterinarians do not have the time and expertise to take a practice sale from start to
Doctors considering a career transition or retirement must plan 3-5 years ahead of time before selling their practice. This will allow time to make any required changes to increase profitability. If practice profitability is 12% EBITDA (earnings before interest, taxes, depreciation, and amortization) then the practice is a corporate target. The seller will be expected